Answer:
Explanation:
a. Total bad debts expenses = Estimated uncollectible accounts - Credit balance in the allowance account before adjustment
= $4500 - $710
= $3,790
Date Account title Debit Credit
Dec 31 Bad Debt Expense $3,790
Allowance for Doubtful Accounts $3,790
a. Total bad debts expenses = Debit balance in the allowance account before adjustment + estimated uncollectible accounts
= $305+ $4500
= $4,805
Date Account title Debit Credit
Dec 31 Bad Debt Expense $4,805
Allowance for Doubtful Accounts $4,805
Answer:
The Fed has decided to expand the money supply, leading to lower interest rates. As a small business owner, you react to these lower interest rates by deciding to expand your operations and open up a new branch of your pet grooming business. What impacts would this decision have on the macroeconomy?- This decision would lead to a raise in the GDP and a decrease in employment, and an increase in the investment part of the GDP.
Explanation:
The decision of The Fed to expand the money supply will lead to a decrease in both money supply and interest rates; people will increase the investment. This expands the business, thus resulting in hiring the people. This would eventually lead to a raise in the GDP and a decrease in employment, and an increase in the investment part of the GDP.
Answer:
c. Decreases by 4.5%
Explanation:
Calculation for What is the percentage change in the PV
First step is to calculate the present value when r is 5%
PV = 100 / (1 + 5%)^1
PV = $95.24
Second step is to calculate present value when r is 10%
PV = 100 / (1 + 10%)^1
PV = $ 90.91
Last step is to calculate the percentage change in the PV
Percentage change in the PV = (90.91 - 95.24) * 100 / 95.24
Percentage change in the PV = - 4.55% (Decrease)
Therefore the Percentage change in the PV Decreases by 4.5%