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3 years ago

A firm achieves differentiation parity ideally when

1 answer:

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A firm achieves differentiation parity ideally when it sells its products or services at a higher price than its competitors.

The idea of parity is that a company sells its products at a higher cost than competitors even though the product or service isn't unique. Differentiation is when one companies products compete and are better than another with the same product.

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Heller Corporation has aged its accounts receivable and estimated uncollectible accounts as follows (in thousands). Age of Recei

AlexFokin [52]

Answer:

Current $11,000 19% $2,090

Past Due 30-60 days $2,400 3% $72

Past due 61-90 days $1,700 6% $102

$2,264

Dr Bad Debt Expense $ 2.264

Cr Allowance for Uncollectible Accounts $ 2.264

Explanation:

If the company applies the allowance method, it means that the account Allowance for Uncollectible Accounts must show as balance the % estimated of accounts receivables as CREDIT, this case $2,264 by the aging method to estimate uncollectible accounts.

Bad accounts are those credits granted by the company and there is no possibility of being charged.

"When customers buy products on credits but the company cannot collect the debt, then it's necessary to cancel the unpaid invoice as uncollectible."

One way is to directly cancel bad debts at the time it was decided that the credit is bad, the total amount reported as bad debt expenses negatively affect the income statement and the accounts receivable are reduced by the same amount, less assets .

The other way is to determine a percentage of the total amount of accounts receivable as bad debts, there are many ways to analyze accounts receivable and calculate the value of bad debts.

When the company has the percentage of uncollectible accounts, the required journal entry is Bad Expenses (debit) with Allowance for Uncollectible Accounts (credit)

At the time of cancellation, since the expenses were recognized before, we only use the Allowance for Uncollectible Accounts (Debit) with accounts receivable (credit), with this we are recognizing the bad credit of the company.

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3 years ago

A company wants to analyze the following investment option using its rate of return. They use a MARR of 15% to determine whether

morpeh [17]

Remainder Part of Question:

Cash Flow

Initial Costs $365,000

Annual Benefits $90,000

Operation and Maintenance $15,000

Salvage Value $25,000

Lifetime in years 10 Years

Answer:

As the IRR > MARR, hence the investment is financially viable.

Explanation:

Find the attachment below:

4 0

3 years ago

Drug sniffing dogs must be 95% accurate in their responses, since we don't want them to miss drugs and also don't want false pos

KiRa [710]

The question: Drug sniffing dogs must be 95% accurate in their responses, since we don't want them to miss drugs and also don't want false positives. a new dog is being tested and is right in 46 of 50 trials. find a 95% confidence interval for the proportion of times the dog will be correct.

The answer of the following question:

The 95% confidence interval for the proportion of times the dog will be corrected is: 0.845, 0.995

7 0

3 years ago

If $3000 is invested at 9% interest, compounded annually, then after n years the investment is worth an = 3000(1.09)n dollars. (

Charra [1.4K]

Answer:

The first five terms of the sequence are:

First year: $3270.00

Second year: $3564.30

Third year: $3885.09

Fourth year: $4234.75

Fifth year: $4615.87

Explanation:

When we're dealing with compound interest rates we're dealing with interests being re-invested into the original investment. This means that the new interests of one period will bear interests in the next period. This can be simply calculated using the compound interest formula.

The formula for compound interest rates is $P(1+i)^{n}$

Where:

P is the principal amount being invested,

i is the interest rate,

n is the number of years.

So for the first year we replace in the formula with the given values:

3000 × $(1.09)^{1}$ = $3270

And for the rest of the years we only need to modify the value of n.

For the second year we'd have:

3000 × $(1.09)^{2}$ = $3564.3

And so on.

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3 years ago

Suppose that the MPC is 0.8 and that $18 trillion of real GDP is currently being demanded. The government wants to increase real

Bingel [31]

Answer: $200 billion

Explanation:

First find the government spending multiplier:

Multiplier = 1 / (1 - MPC)

= 1 / (1 - 0.8)

= 5

The government wants to increase the real GDP to $19 trillion from $18 trillion which means that they want to increase it by $1 trillion.

In order to increase it by $1 trillion, the amount the government needs to spend is:

Increase in real GDP = Multiplier * Government spending

1 trillion = 5 * Government spending

Government spending = 1 trillion / 5

= $200 billion

4 0

3 years ago