<h2>(D.), organize an in-store event.</h2>
With the straight line equation, we can assume y = household spending, x is the income earned monthly, and b would be the base amount spent per month ($1000). m = 1/2 of the income that is spent (additional spending).
Therefore our equation takes shape as follows:
y = 1/2($income) + $1000
An increase in inflation and a decrease in unemployment.
Answer: Debit Bad debt expense $7,300; Credit Allowance for doubtful accounts $7,300.
Explanation: 5% of accounts receivable of $190,000 is $9,500. Remember the credit balance in Allowance for uncollectible accounts is $2,200 prior to any adjustment and this reports to the balance sheet. To reinstate this account to the required provision for uncollectible amount of $9,500, we need to adjust for the difference (that is, $9,500 minus $2,200 existing balance), which is $7,300. <u>Then, the entries above would be recorded. </u>
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