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pickupchik [31]
3 years ago
11

Liquor stores in Tennessee lobby the state legislature, asking that wine shipments from out-of-state be made illegal. They argue

that if consumers are allowed to buy wine from out-of-state, many in-state employees of liquor stores will lose their jobs. What would an economist likely say in response to this argument?
Business
1 answer:
Minchanka [31]3 years ago
4 0

Explanation:

An economist will respond to this situation by suggesting that the people of Tennessee reallocate resources used formerly for wine production to producing something else that they are good or famous for producing. This move will most definitely make people of Tennessee richer and other jobs will infact be created.

If out-of-state wine happens to be cheaper than what is being produced in Tennessee, then it will be most reasonable for Tennesseeans to stick to out-of-state wines.  

Liquor store job loses will give birth to new jobs that might not have been thought of and overtime, people who have lost their jobs will get a new job.

I hope this helps. Cheers.

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To identify and define marketing opportunities and problems
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Assume the following information for Kingbird Corp. Accounts receivable (beginning balance) $139,000 Allowance for doubtful acco
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Answer:

Prepare journal entries of sales, collections, write offs of accounts receivable, and reverse entries:

Date        Account details and explanations      Debit          Credit

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                sales revenue                                                        944,000

                 Allowance for doubtful accounts      5300

                Accounts receivable                                                    5300

                Accounts receivable                            1800

                 Allowance for doubtful accounts                                1800

                cash                                                        1800

                 Accounts receivable                                                    1800

Calculating the ending balance of accounts receivable and unadjusted ending balance of allowance for doubtful accounts:

                  particulars                                                             Amount ($)

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                 Add: Net credit sales                                               944,000

                 less :  Collections                                                     908,000

                 Write-offs                                                                       5,300

                  Add: Reinstated amount                                              1800

                 less:  Collections                                                            1800

                  Ending  balance of accounts receivable                169700

                   particulars                                                             Amount ($)

                 beginning balance of doubtful accounts               11,370

                 less :  Write-offs                                                        5300

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                 Ending  balance of unadjusted  balance                 7870

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Preparing journal entry to record bad debt

Date    Account details and explanations         Debit          Credit

           Bad debt expense ( 169700*8%) - 7870  12789

               allowance of  doubtful accounts                            12789

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Answer:

$100, $700, $800

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This follows the double entry rule that a credit in one account must correspond to at least one debit in another account.

We debit all asset accounts(receivables,cash) when increased and credit all liabilities account when increased. We credit all income account(revenue) when increased and debit all expenses account when increased.

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Ep(r) = rf + β*( E(M)- rf)

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replacing values

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E(M) = ( 17.2% - 3.2%) /1.4 + 3.2% = 13.2%

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Thus for a portfolio of β=0.6

Ep(r) = rf + β*( E(M)- rf) = 3.2% + 0.6*(13.2%-3.2%) = 9.2 %

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