The answer is A. Imposition of a non binding price ceiling in the market
Price Ceiling is when a government impose a price limit over a specific product
Non-Binding Price ceiling is if that price limit that imposed to the product is still <em><u>higher than market equilibrium ,</u></em> which won't do anything to producer's surplus
The Allowance for Doubtful Accounts T-account will have the <u>estimated bad debts from the adjusting entry</u> sales discounts .
Doubtful account
An allowance for doubtful accounts is considered a “contra asset,” because it reduces the amount of an asset, in this case the accounts receivable. The allowance, sometimes called a bad debt reserve, represents management's estimate of the amount of accounts receivable that will not be paid by customers.
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Answer:
a) 100 units
b) 2.5 order per year
c) 50 units
Explanation:
Given data:
demand 250 units
order cost is $20
holding cost $1
a) Economic order quantity 
b) number of order for each year 
order/ year
c) average inventory 
The answer is A. The owner has a lot of his own money invested in the business.
