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deff fn [24]
3 years ago
11

Estimating Uncollectible Accounts and Reporting Accounts Receivable LaFond Company analyzes its accounts receivable at December

31, and arrives at the aged categories below along with the percentages that are estimated as uncollectible.
Age Group Accounts Receivable Estimated Loss %

0-30 days past due $ 180,000 1%

31-60 days past due 40,000 2

61-120 days past due 22,000 5

121-180 12,000 10

Over 180 days past due 8,000 25

Total accounts receivable $ 262,000


The unused balance of the allowance for uncollectible accounts on December 31, before any adjustments, is $1,040.

(a) What amount of bad debts expense will LaFond report in its income statement for the year?
Business
1 answer:
Neko [114]3 years ago
3 0

Answer:

$5,860

Explanation:

Age group                         Accounts          Estimated      Loss

                                           receivable           Loss

0-30 days past due           $180,000             1%             $1,800

31-60 days past due          $40,000              2%             $800

61-120 days past due         $22,000              5%             $1,100

121-180 days past due        $12,000               10%            $1,200

Over 180 days past due     $8,000               25%            $2,000

Total accounts receivable  $262,000                              $6,900

Bad debt expense = Total bad debts - Allowance

= $6,900 - $1,040

= $5,860

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Answer:

b. inelastic

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Elasticitiy of demand measures the responsiveness of quantity demanded to changes in price.

Elasticity of demand = percentage change in quantity demanded/ percentage change in price

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I hope my answer helps you

7 0
3 years ago
As an oligopoly firm produces at a higher output, economies of scale allow the costs per unit (atc) to _____________ significant
asambeis [7]

As an Oligopoly firm produces at a higher output, economies of scale allow the costs per unit (ATC) to <u>decline</u> significantly.

When firms in an oligopoly market individually chooses production in order to maximize profit, a quantity of output is produced by them which is higher than the level produced by monopoly and lesser than the level produced by competition.

The existence of economies of scale in certain industries can lead to oligopolistic market structures in those industries. This oligopoly market structure refers to a market form in which there are only a few sellers and they sell similar products.

The Oligopoly firm produces at a higher output, and so the costs per unit here decline significantly. Oligopoly firms are also able to take advantage of economies of scale that reduce production costs and prices.

Thus, when the oligopoly firm produces at a higher output, economies of scale allow the costs per unit (ATC) to decline significantly.

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4 0
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