Answer:
The correct answer is C. A difference between the economic long run and the short run is that demand can affect output and employment in the short run, whereas supply is the ruling force in the long run.
Explanation:
In economics, the long run is the conceptual time period for which we have no fixed factors of production. In contrast to the long run, in the short run we have some variable and some fixed factors, relative to the chosen level of production. In the long run, companies change production levels in response to economic profit or loss, and land, labor, capital goods, and entrepreneurship vary to reach the corresponding level of production associated with long-term equilibrium.
Answer:
Bad debt expense $5,500
Explanation:
Accounts Receivable $112,000 (debit)
Allowance for Doubtful Accounts $2,400 (credit)
estimated uncollectible accounts = $7,900
bad debt expense = estimated uncollectible accounts - balance for allowance for doubtful accounts = $7,900 - $2,400 = $5,500
the adjusting journal entry should be:
Dr Bad debt expense 5,500
Cr Allowance for doubtful accounts 5,500
Since the allowance for doubtful accounts is a contra asset account, it has a normal credit balance which reduces the value of accounts receivable.
Answer:
A decrease in individual income taxes increase disposable income, which increases comsumption spending
Explanation:
In a classic economic model, people want to consume all of their income, but if consumers have other obligations (such as taxes), they paid them (obligations) first and the remain income is called disposable income. If these obligations decrease then the remaining income will increase (disposable income increases) and because people always want to consume, this increase in disposable income will traduce in an increase in consumption.
Answer:
a. $58,400
Explanation:
A discounted note, will make the person receive a lesser amount than the amount due at maturity. This way the person who grants the note is receiving interest for borrowing.
<em><u>Calculations</u></em>
principal x discount rate x time = discount
<em><u>Where</u></em> rate and time should be expressed in the same metric IE if the rate is annual express time in portion of years if it is monthly, in months.
60,000 x 0.08 x 120/360 = 1,600
Now, we subtract this amount form the nominal:
nominal - discount = net
60,000 - 1,600 = <u>58,400</u>