Solution :
Account Estimated Estimated
receivable loss% bad debts
Current 250,000 0.5 1250
1-30 days of past due 90,000 1.0 900
31-60 days of past due 20,000 2.0 400
61-120 days of past due 11,000 5.0 550
121-180 days of past due 6,000 10.0 600
Over 180 days of past due 4,000 25.0 1000
Total account receivable 381,000 4700
a). The amount for the bad debts expense is = 4700 - (4350 - 3830)
= 4180
b). Balance in the accounts receivable
Accounts receivable = 381,000
Less : allowance for bad debts = - 4180
Net realizable value of the accounts receivable = 376,820
c). Bad debts expense
a). 4180
Balance: 4180
The allowance for un-collectible account
Beg. Bal : 4350
write off : 3830
a). 4180
Balance 4700
Answer:
Relationships; Competition.
Explanation:
In today's business environment, firms that truly focus on customers must instill a corporate culture that places customers and other stakeholders at the top of the organizational hierarchy. when this occurs, the firm shifts its focus from transactions to <u>relationships</u>, and from <u>competitions</u> to collaboration.
Customer are considered to be king in the current open market condition, where seller are trying every bit to attract more and more customer. When a firm possesses capabilities that allow it to serve customers' needs better than the competition, the firm is said to have competitive advantage, however, this lead to shift of focus from transaction to relation building with customer to gain profit in long run and it does not focus only on competition but look for collaboration with customer to gain competitive advantage for future.
Answer is A
Explanation: Consumer surplus actually happens when a customer is willing and ready to pay for a particular product than its current market price. It is a measure of the additional benefits a consumer gets after paying for a product even though they are willing to pay more.
For example: Let's assume you want to get a IPhone 8 plus and you value it at $800 dollars, which you are ready to pay, but realise it is sold at $700. When you buy it at $700, the customer surplus is $100, that is a difference between how much you were willing to pay and the price you eventually got it.
Consumer Surplus changes as the equilibrium price of a good rises or falls. If the price of a good rises, the consumer surplus decreases but when the price of the good falls, the consumer surplus increases.
Answer:
Profit, $35,000
Explanation:
Economic profit or loss is defined as the difference among the revenue received from the output sale and the input costs and any kind of opportunity costs.
While computing the economic profit, the explicit as well as opportunity cost will be deducted or subtracted from the earned revenues.
So, in this case, Economic Profit or loss is computed as:
Economic Profit or loss = Costs - Revenue
where
Costs involve
= $32,000 + $408,000 + $23,000 + $32,000
= $495,000
Revenue is $460,000
Therefore,
Economic profit = $495,000 - $460,000
= $35,000
