Most nations use fiat money today because it has no value and is only used for the purpose of making the payment.
Answer: Product differentiation strategy
Explanation: In the given case, the industry in which Thomas works depicts features of oligopoly with few firms operating at high level. Thus, increase in price by Thomas would shift the demand for consumers to other firms.
Hence Thomas should opt for product differentiation strategy and should increase those features which classify its products different from the others. In such industries, quality is the core essence and costumers are wiling to pay slight higher prices if the quality of the product offered is higher than others.
Hence Thomas should narrow the completion and should focus on inventing some unique features in his products.
Answer:
The answer follows below;
Explanation:
Sales=$1,000,000
Allowance for Doubtful Accounts=$1,000,000*1%=$10,000
Bad Debt Expense Dr.$10,000
Allowance for Bad Debts Accounts= Cr.$10,000
In sales % method, we record only % of sales as uncollectible.
