Which statement best summarizes the role of businesses in the flow of

At the beginning of the current period, Bramble Corp. had balances in Accounts Receivable of $196,800 and in Allowance for Doubt

olasank [31]

Answer and Explanation:

The journal entries are shown below:

a. Account receivable Dr $864,300

To Sales revenue $864,300

(Being the sales revenue is recorded)

Cash Dr $687,610

To Account receivable $687,610

(Being the collections is recorded)

2. Allowance for doubtful debts $6,804

To Account receivable $6,804

(Being the written off amount is recorded)

3. Account receivable Dr $3,219

To Allowance for doubtful debts $3,219

(Being the previous written off amount is recorded)

Cash Dr $3,219

To Account receivable $3,219

(Being the recovery is recorded)

4. Bad debt expense $18,075

To Allowance for doubtful debts $18,075

(Being the bad debt expense is recorded)

The computation is shown below:

= $24,000 - $9,510 + $6,804 - $3,219

= $18,075

Only these entries are recorded

3 0

3 years ago

Production Budget Pasadena Candle Inc. projected sales of 64,000 candles for January. The estimated January 1 inventory is 2,600

icang [17]

Answer:

Production budget:

Projected sales= 64,000

Ending inventory= 7,000

Beginning inventory= (2,600)

Total= 68,400 units

Explanation:

Giving the following information:

Pasadena Candle Inc. projected sales of 64,000 candles for January. The estimated January 1 inventory is 2,600 units, and the desired January 31 inventory is 7,000 units.

Production budget= projected sales + ending inventory - beginning inventory

Production budget:

Projected sales= 64,000

Ending inventory= 7,000

Beginning inventory= (2,600)

Total= 68,400 units

3 0

3 years ago

In an efficient market and for an investor who believes in a passive approach to investing, what is the primary duty of a portfo

daser333 [38]

Answer:

<u>Letter B is correct</u>. Diversification.

Explanation:

Diversification in this case is the best option for an investor with this profile. This is because in the passive approach it is considered the price fluctuation information of a stock and the history of its current and future earnings. Therefore, diversification is ideal for this type of investor, because diversifying investments reduces the risk of losses.

6 0

3 years ago

A small Canadian firm that has developed some valuable new medical products using its unique biotechnology know-how is trying to

den301095 [7]

Answer:

Part a. Manufacturing the goods at home and let overseas sales managers handle the marketing.

Advantages

Can have a full authority in production activities.
It is easy to set up a strategy and multiply the manufacturing.
Having better regulator over human resources.
The foreign sales agents will enhanced the understanding of European marketplaces.
It lower the exit costs if product fails.

Disadvantages

Having lack of information in European pharmaceutical procedures.
The foreign agents may damage the brand name if not prudently handled.
Additional costs in delivery of the products.

Part b. Manufacture the products at home and set up a wholly owned subsidiary in Europe to handle marketing.

Advantages

Having full control in manufacturing activities.
It is easy to set up a strategy and multiply the manufacturing.
Having better regulator over human resources.
The brand name will not be damaged since the marketing is controlled by the same company

Disadvantages

Utilization of extra resources to be consumed on marketing
Having lack of information in European pharmaceutical procedures.
Additional costs in delivery of the products
Having lack of information in European pharmaceutical procedures

Part c. Enter into a strategic alliance with a large European pharmaceutical firm. The product would be manufactured in Europe by the 50/50 joint venture and marketed by the European firm

Advantages

The risk is distributed among the firms.
No additional delivery cost included.
Knowledge of European organization will be valuable in
understanding guidelines and advertising in European markets.

Disadvantages

Having less control in manufacturing activities
Shared of the profit among the partners.
Moderate level of exit cost is included.
Additional firm may harm the brand image.

7 0

3 years ago

If "consumers were to decrease their saving for retirement and businesses" were to decrease borrowing for new plants and machine

emmasim [6.3K]

Answer: The supply of the loan able funds would decrease and so would it demand. It will also decrease.

<u>Explanation:</u>

With the decrease in the saving for the retirement purposes, the demand of the consumers would decrease for loan able funds. If the businesses also decrease the savings for new plant and machinery, it would decrease their demand for loan able funds.

Because of the decrease in the demand, the supply of the loan able funds will also decrease. But the effect of this on the real interest rates can not be said to be in a certain manner. It is uncertain.

7 0

3 years ago