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EastWind [94]
3 years ago
5

By what amount would net income differ if bad debt expense was computed using the percentage-of-receivables approach? Assume tha

t accounts written off were for sales in a prior year. Net income would be $Entry field with incorrect answer 2323416 Entry field with correct answer under the percentage-of-receivables approach.

Business
1 answer:
Murljashka [212]3 years ago
5 0

Answer:

By following the Accountants Principle and Dicksons policy of debiting Bad debt accounts as Accounts are written off, the Net income would have been impacted negatively (reduced) by the write off from Prior period of $31,330 only

However, by following the % of receivables approach, a total of $31,330 (Write off from prior period) + $9,240 (current period provision for bad debt) will impact the Net Income negatively (reduced)  = $40,570

Explanation:

Accounts receivable balance = $77,000

12% projected uncollectible debt = $9,240

Provision for bad debt under the % of receivables approach = $9,240

Amount written off related to prior year = $31,330

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Monetary Policy in Flosserland: In Flosserland, the Department of Finance is responsible for monetary policy. Flosserland has ha
evablogger [386]

Answer:

The correct answer is d) neither the long-run Phillips curve nor the Classical dichotomy.

Explanation:

The answer that best suits the situation described is the Phillips curve in the short term but not in the long term.

The Phillips curve starts from the principle that the amount of money circulating (commonly called "money supply") has real effects on the economy in the short term. In this way, an increase in the money supply would have a beneficial effect on aggregate demand, as citizens will spend more when their nominal wages are increased (known as “monetary illusion”) and a more favorable framework for investment and investment will be created. that the prospects of rising prices will improve the expectations of corporate profits. The improvement in aggregate demand would result in greater economic growth, and this in turn in the creation of new jobs. This is how an inverse relationship between inflation and unemployment is established, expressed graphically by a downward curve.

3 0
3 years ago
If the price of product x rises, then the resulting decline in the amount purchased will:_____.
MissTica

If the price of product x rises, then the resulting decline in the amount purchased will<u> increase the marginal utility of this good.</u>

The difference in overall utility that results from consuming one extra unit of a good is known as marginal utility. Economists utilize the idea of marginal utility to estimate the quantity of a good that consumers will buy.

When the overall utility is increased by the consumption of an additional item, positive marginal utility occurs. On the other side, negative marginal utility arises when the overall utility is reduced by the consumption of one extra unit. Progressive taxation are frequently defended using the law of diminishing marginal utility.

Negative, zero, or positive marginal utility are all possible.

Hence, option B is the correct answer

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4 0
2 years ago
Of the last 100 customers entering a computer shop, 25 have purchased a computer. If the classical method for computing probabil
nlexa [21]

Answer:

correct option is b.0.50

Explanation:

given data

computer shop = 100 customers

purchased computer = 25

solution

we know that past data does not affect the probability of next outcome

so when they buying computer or net

so here

probability of customer buy computer is = \frac{1}{2}  = 0.5

and

probability of customer not buy computer is = \frac{1}{2}  = 0.5

so here chance of buying as they buying or not buying is 50 %

so correct option is b.0.50

3 0
3 years ago
Four roommates are planning to spend the weekend in their dorm room watching old movies, and they are debating how many to watch
netineya [11]
More to the question?
4 0
3 years ago
Lulzbot sells 6,000 units of its product for $500 each. The selling price includes a one-year warranty on parts. It is expected
Olin [163]

Answer:

$3,000

Explanation:

Warranty expense is an obligation on the business because business is liable to accept the claims of warranty. A estimated percentage of warranty expense is charges as an expense in each period.

Total Sales = $500 x 6,000 units = $3,000,000

Warranty Expense for the year = Sales units x 3% x warranty cost per unit

Warranty Expense for the year = 6,000 x 3% x $50 = $9,000

Recognised warranty cost in the year = 120 units x $50 = $6,000

Accrued Warranty expense = $9,000 - $6,000 = $3,000

5 0
3 years ago
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