Which of these products or services is likely to have an inelastic supply in the short run?

Near the end of 2010, the ledger of Stivers Company included the following accounts and balances: Allowance for Doubtful Account

Minchanka [31]

Answer and Explanation:

The computation of the balances of the Allowance for Doubtful Accounts, Bad Debt Expense and Accounts Receivable is shown below;

For Accounts receivable

a) Opening balance $200,000 Debit balance

b) Current year credit sales (75% of $800,000) $600,000 Debit balance

c) (-) Current collection from accounts receivables -$450,000 Credit balance

d) (-) Bad debt expenses -$11,000 Credit balance

e) Closing balance of accounts receivables $339,000 Debit balance

for Allowance for Doubtful Accounts

Allowance required as per Current year analysis (2% of (75% of $800,000) $12,000 Credit balance

(-) Opening balance $1,000 Credit balance

$11,000 Credit balance

The journal entry is

Bad debt expense a/c …Dr 11000

To Allowance for Doubtful Accounts 11000

The Closing balance of Allowance for Doubtful Accounts 12000 Credit balance

For Bad debt expenses

The journal entry is

Bad debt expense a/c …Dr 11000

To Allowance for Doubtful Accounts 11000

The Closing balance of Bad debt expense account 0

7 0

3 years ago

"For each of the following scenarios, begin by assuming that all demand factors are set to their original values and that Big Wi

AleksandrR [38]

Answer:

Check the explanation

Explanation:

Whenever there’s a $300 charge from the Big Winner, and normal household income is expected to be around $50,000, it can fill 200 rooms per night at that price. Though, if there’s an increase in a typical household income to $55,000, the quantity of rooms that would be demanded will rises to 300 rooms per night. You can calculate the income elasticity of demand for Big Winner's hotel rooms by dividing the percentage change in quantity demanded by the percentage change in income:

Income Elasticity of Demand Income Elasticity of Demand =

= Percentage Change in Quantity Demanded,

Percentage Change in Income

Percentage Change in Quantity Demanded

Percentage Change in Income

=250 = 50%10% 50%10% = 5 5

6 0

3 years ago

many people believe that this kind of tax is most fair because everyone will pay the same percentage of taxes

allsm [11]

A lump-some tax is the most fair because everyone pays the same percentage of taxes.

7 0

3 years ago

Retained earnings on the balance sheet?

belka [17]

Answer:

The answer is D. have already been reinvested in the firm

Explanation:

Retained Earning is that part of income or profit that was not distributed out as dividend.

It is retained to grow the business or make the business bigger. It is part of shareholder's equity.

Option A is wrong. It doesn't increase with operating income. It depends on dividend policy and the net profit

3 0

3 years ago

On January 1, 2020, Blossom Company had $1,335,000 of common stock outstanding that was issued at par. It also had retained earn

Goryan [66]

Answer:

(A)

Retained Earnings 527,440 debit

Common Stock 277,600 credit

Additional Paid-In 249,840 credit

(B)

Retained Earnings 1,080,640 debit

Common Stock 245,600 credit

Additional Paid-In 835,040 credit

Explanation:

1,335,000 common stock

RE 750,500

(A)

40,000 at par value = 10 = 400,000 issued stocks July 1st

Stock dividends 16%

1,735,000 x .16 = 277,600 CS

173,500 x .16 x 19 = 527,440 market value of the bond dividends

Retained Earnings 527,440 debit

Common Stock 277,600 credit

Additional Paid-In 249,840 credit

(B)

40,000 x 5 = 200,000 issued stocks July 1st

Stock dividends 16&

1,535,000 x .16 = 245,600 CS

307,000 shares x .16 x 22 = 1,080,640 market value of the bonds dividends

Retained Earnings 1,080,640 debit

Common Stock 245,600 credit

Additional Paid-In 835,040 credit

4 0

3 years ago