Answer:
$250 ( C )
Explanation:
using the given data below is the entry
The adjusting entry to recognize bad debts will include a debit to bad debt expense for
<h3>
particulars amount</h3>
Beginning accounts receivable 14000
+ Credit sales made during the year 172000
(-) collections from debtors (170000)
(-) expected salary return & allowances for credit sales (2000)
Ending accounts receivable 14000
Percentage of bad debt 1.5%
Total bad debts balance required ( 14000*1.5%) 210
+ Already debit balance in allowance for doubtful account 40
Total debit to be made in bad debts 250
Total debts = total bad debts balance required + already debit balance in all
= 210 + 40 = $250
Answer: reduce output.
Explanation:
In a competitive market, firms do not have control over the price that they sell their goods in the market but they do have control over their costs. It is recommended to produce/ sell goods at a quantity where Marginal Revenue will equal Marginal cost (MR = MC).
In a Competitive Market, Price is the same as Marginal revenue which means that Marginal revenue here is $25 and the Marginal Cost is $26. At this quantity of output, the Marginal Cost is larger than the Marginal revenue.
Company should therefore reduce output to a quantity where Marginal Cost will equal Marginal revenue.
Answer:
<u>a. True</u>
Explanation:
Indeed, we could rightly say the statement is true by remembering the four key factors of production (business):
- capital (wealth)
- labor
- resources
- entrepreneur.
Labor is part of the list of important factors and political freedom allows the entrepreneur to sucessfully manage business activities.
The right answer for the question that is being asked and shown above is that: "a. Interest is charged only on the amount you actually borrow." a line of credit similar to a credit card is that <span>a. Interest is charged only on the amount you actually borrow.</span>
Answer:
Sell pound forward
Explanation:
Forward rate = $1.51 *(1+2.65%) = 1.51 * 1.0265 = 1.55
Amount receivable in case of forward hedge = 100,000 * 1.55 = 155,000
Premium payable on put options = 100,000 * 0.3 = 3,000
Amount receivable in put options = 100,000 * 1.54 = 154,000
Net receivables in put options = 154,000 - 3,000 = 151,000
Conclusion: Higher amount is available in case of forward hedge. So, sell pound forward
