Answer:
$14,300
Explanation:
Based on the information given we were told that the management of the company estimated that the amount in the uncollectible accounts will be the amount of $14,300 which means that the amount of $14,300 will be the balance of the Allowance for Bad Debts that should be reported on the company balance sheet.
Answer:
When an economy produces at full employment, but consumers, government, there is a recessionary gap - Option B.
Explanation:
According to the Keynesian perspective, firms produce output only if they expect it to sell.
While the availability of the factors of production determines a nation’s potential gross domestic product (GDP), the amount of goods and services actually being sold, known as real GDP depends on how much demand exists across the economy.
Keynes termed a fall in the aggregate demand as a recessionary gap.
A recessionary gap refers to an economy operating at a level below its full-employment equilibrium. Under this condition, the level of real gross domestic product (GDP) is lower than the level of full employment, which puts downward pressure on prices in the long run.
Thus, when an economy produces at full employment, but consumers, government, there is a recessionary gap - Option B.
Answer:
b. −1.79 percent
Explanation:
You can solve this using a financial calculator. I'm using TI BA II plus ;
First, find Price of the bond if YTM = 5.5%. Since it is semi-annual, adjust the YTM and total duration;
N = 13*2 = 26
I/Y = 5.5%/2 = 2.75%
PMT = (6%/2)*1000 = 30
FV = 1,000
CPT PV = $1046.01
Next, find Price of the bond if YTM = 5.7%.
N = 13*2 = 26
I/Y = 5.7%/2 = 2.85%
PMT = (6%/2)*1000 = 30
FV = 1,000
CPT PV = $1027.28
Percentage change =[ (New price- Old price)/Old price] *100
= -1.79%
I'm almost 100% positive the answer is C.
