Answer:
A. current liabilities
Explanation:
notes payable are for a period of 90 days which falls under the definition of current liabilities and not for any other given option. current liabilities are those liabilities which are maximum up to 12 months of period. so we should answer A. current liabilities
Amount should the company record as an estimate of Bad Debt Expense is $6,200
Explanation:
Net credit sales of Kelton Inc. for the current year = $310,000
The unadjusted credit balance in Allowance for Doubtful Accounts = $525.
Kelton Inc. bad debt losses of = 2% of credit sales in prior periods.
Estimate of Bad Debt Expense = Credit Sales * Bad debit %
- Estimate of Bad Debt Expense = ($310,000 * 2) / 100
- Estimate of Bad Debt Expense = $6,200
Amount should the company record as an estimate of Bad Debt Expense = $6200
Answer:
a. Michelle's consumer surplus: $3.5
b. Paul's Cafe and Bakery producer surplus: $3.5
Explanation:
This one is simple I attached a graphic so you can understand me better:
The consumer surplus is just the difference between the price payed and the price willed to pay by the consumer, in this case the price payed was $4.25 but Michelle was willing to pay up to $7.75 so we just substract this numbers
7.75 - 4.25 = 3.5
Same for the producer surplus which is the difference between the price the consumer pay and the price that the producer was willing to accept.
4.25 - 0.75 = 3.5
i think A or c
because most likely for b and c you might pay for with credit card