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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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. Discuss and Implement the Price Adjustment Strategies in current market. Apply each strategy with 3 examples along with pictur
astra-53 [7]

Answer:

There are many different price adjustment strategies which can be implemented in the current market.

Explanation:

Psychological pricing:

Psychological pricing is a strategy in which the price of a product is displayed with mostly one cent difference so the whole number shown is less by $1 and this difference can get higher if the price of the product is more.

Example 1: The price for a toy in a toy shop is $4.99, if rounded this will be $5 but the whole number visible is $4.

Example 2: The price of a laptop is $193, this again is nearly $200 but the price is reduced by $7 in order to influence their customers into buying the product.

Example 3: The price of a car is $35,995, this again is about $36,000 but the buyer may be influenced by this technique and result in purchasing the product with such price.

Geographical Pricing:

Geographical pricing is a strategy where different prices are charged in different outlets, this strategy is made keeping in mind the purchasing power of the locality, if the local people can pay higher price for a product then the price is high there but same product may have a lower price in an area where people can not pay high price.

Example 1: Price of a T-shirt is $15 in a posh area while the price of the same T-shirt is $5 in an area with poor locality.

Example 2: Price of a hair brush is $10 in a poor area while the same brush is available in a posh area at a rate of $35.

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7 0
3 years ago
In the context of web marketing the _____ is computed by dividing the number of clicks on an ad
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3 years ago
In a proceeds transaction: I. a customer directs that a position be sold; and the funds generated from the sale be used to buy a
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I and  IV

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A proceed transaction is a type of transaction in securities where a broker uses the proceeds of the sales of a security to buy another security , still constituting a transaction. (option 1)

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6 0
3 years ago
Coca-Cola's worldwide sales as of December 31, 2011, was 26.7 billion cases. Assume the following sales distribution:
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Answer:

Assuming the same rate that Coca Cola's did in Germany between 1939 and 2008 and the same volume distribution of 2011 cases sales, then hypothetically sales in Germany in 2053 would be 226 bilion cases.

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Taking the Coca Cola's worldwide growth the same rate that Coca Cola's grew in Germany between 1939 and 2008, that is 10.26% per, then for the 26.7 billion from today up to the 2053 year we would have:

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3 0
3 years ago
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