The price of the water needs to be raised by 40% when the consumption of water reduces by 10% and the price elasticity of demand results to 25%.
<h3>What is meant by the price of elasticity of demand?</h3>
The price elasticity of demand is determined as the proportionate variation in quantity with respect to variation in the price of a good.
Given values:
Change in water consumption (fall): 10%
Price elasticity of demand: 25%
Computation of percentage change in the price of water:
Therefore, there is an increase in water price by 40%.
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Answer:
A
Explanation:
Because I don't want to be in your house.
Answer:
Debit Bad Debts Expense $2,939; Credit Allowance for Doubtful Accounts $2,939
Explanation:
Estimated Uncollectibles based on the past experience = $803,000 * 0.3%
=$2,409
Debit balance in allowance for doubtful accounts = $530
The total amount of Bad Debts Expense to be provided in the adjusting entry = $2,409 + $530
= $2,939
The only item with no entry in assets on his balance sheet is <u>B) the interest expense</u>.
<h3>When is an accounting entry for assets made?</h3>
The accounting entry for assets is made when an asset increases or decreases in value.
For instance, the interest expense may not necessarily affect the assets because it is not stated if it has been paid in cash or not. However, the expired insurance policy, depreciation, and payment of dividends affect these asset accounts:
- Prepaid Insurance,
- Long-term asset
- Cash.
<h3>Answer Options:</h3>
A) the expired insurance policy
B) the interest expense
C) the depreciation
D) the dividend
Thus, the only item with no entry in assets on his balance sheet is <u>B) the interest expense</u>.
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