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Otrada [13]
2 years ago
13

If the government and Central Bank don't use economic policy, what could happen?

Business
1 answer:
Liula [17]2 years ago
6 0

This would leave the economy in the laizzes fairie position and it will cause malpractices.

Explanation:

Laizzes fairie is the concept that the market should be left on its own without any government influence or meddling with he rules and let the market rules define themselves.

This is not a good strategy as the malpractices of the market will take over and this makes the poor disadvantaged as they are wont to be taken advantage of by those who own the means of production in the state.

This is why the government's policies are needed as well as the Central bank.

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Exercise 8-3
7nadin3 [17]

Answer:

(a) Prepare the entries to record sales and collections during the period.

  • It had net credit sales of $800,000  

Dr Accounts receivable $ 800,000

Cr Sales $ 800,000

  • Collections of $763,000.

Dr CASH $ 763,000

Cr Accounts receivable $ 763,000

(b) Prepare the entry to record the write-off of uncollectible accounts during the period.

  • It wrote off as uncollectible accounts receivable of $7,300  

Dr Allowance for Uncollectible Accounts $ 7,300

Cr Accounts receivable $ 7,300

(c) Prepare the entries to record the recovery of the uncollectible account during the period.

  • However, a $3,100 account previously written off as uncollectible was recovered before the end of the current period.  

Dr Accounts receivable $ 3,100

Cr Allowance for Uncollectible Accounts $ 3,100

(d) Prepare the entry to record bad debt expense for the period.

  • Uncollectible accounts are estimated to total $25,000 at the end of the period.  

Dr Bad Debt Expense $ 20,200

Cr Allowance for Uncollectible Accounts $ 20,200

Explanation:

If the company applies the allowance method, it means that the account Allowance for Uncollectible Accounts must show as balance the estimated value of $25,000

Because the company already has a CREDIT balance in the Allowance for Doubtful Accounts it's necessary to register an entry that complement the existing value and reflect the estimated value, $ 20,200  

Bad accounts are those credits granted by the company and there is no possibility of being charged.

When customers buy products on credits but the company cannot collect the debt, then it's necessary to cancel the unpaid invoice as uncollectible.

One way is to directly cancel bad debts at the time it was decided that the credit is bad, the total amount reported as bad debt expenses negatively affect the income statement and the accounts receivable are reduced by the same amount, less assets

The other way is to determine a percentage of the total amount of accounts receivable as bad debts, there are many ways to analyze accounts receivable and calculate the value of bad debts.

When the company has the percentage of uncollectible accounts, the required journal entry is Bad Expenses (debit) with Reserve for Bad Accounts (credit)

At the time of cancellation, since the expenses were recognized before, we only use the Allowance for Uncollectible Accounts (Debit)  with accounts receivable (credit), with this we are recognizing the bad credit of the company.

7 0
3 years ago
Which of the following is true of the Discount on Bonds Payable account? The bonds are due inten years.A) It is subtracted from
Aliun [14]

Answer:

A) It is subtracted from the Bonds Payable balance and shown with long-term liabilities on the balance sheet

Explanation:

The discount on Bonds payable, as their name implies, decrease the Bonds Payable carrying value. A bond with discounts, was issued at a lower price than his face value. The discount on bonds represent that difference.

It takes amortization while the time past, until at maturity, their balance is zero, to represent the reality, the obligation for the company is for the face value, so the carrying value of bonds payable should equal the face value.

Last, because the bonds are due in ten-year their place is the long-term liabilities. As their obligation are not within the 12 month period to qualify as short-term

8 0
3 years ago
Mars inc., a manufacturer of cat food in texas, places an ad in a publication aimed at veterinarians. the ad explains why they s
ioda
The correct option from the given options is "<span>a promotional push strategy".

In the above situation, Mars Inc. utilized a promotional push strategy. Projects intended to influence the exchange to stock, merchandise, and advance a maker's items are a piece of a limited time push procedure. The objective of this technique is to push the item through the channels of appropriation by forcefully offering and elevating the thing to the affiliates, or exchange.
</span>
7 0
3 years ago
On January 1, 2021, the Excel Delivery Company purchased a delivery van for $111,000. At the end of its five-year service life,
sveta [45]

Answer:

Annual depreciation = $44,400

Explanation:

Given,

Purchase price of the delivery van = $111,000

Salvage value = $11,400

Useful Life = 5 years

We know that

annual depreciation under double declining balance (%) = (100%/useful life)*2

Putting the value in the formula, Annual depreciation (%) =   (100%/5)*2

                                                                                               = 40%

Annual depreciation = Purchase Price*Percentage of annual depreciation

Annual depreciation = $111,000*40% = $44,400

6 0
3 years ago
During her psychology test, Kelsey could not remember the meaning of the term MNEMONICS. Surprisingly, however, she accurately r
ehidna [41]

Answer:

A) automatic processing

Explanation:

We process data in two basic ways: controlled processing and automatic processing. Controlled processing is a conscious process where we are aware of what we are doing. On the other hand, automatic processing happens unintentionally and without requiring our attention.

5 0
3 years ago
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