Answer: Please see the required journals below:
Mar. 17:
Debit Allowance for doubtful accounts $1,000
Credit Accounts receivable $1,000
July 29:
Debit Cash $1,000
Credit Bad debt recovery (income statement) $1,000
Explanation: On March 17, when $275 was received from Shawn and the remaining balance of $1,000 was written off, the allowance for doubtful accounts has to be debited since the company adopts the allowance method of accounting for uncollectible receivables. Note that the allowance account would have the required buffer to take care of this debit. Similarly, when the recovery was made, cash would be debited then the credit would default to income statement.
Answer: it can produce that good using fewer resources than its trading partner
Explanation:
A country has an absolute advantage in the production of a good when such country can produce the good using fewer resources than another country.
Absolute advantage can be due to the natural endowment of a country. For example, let's say Japan uses 2 hours in producing a good while Brazil uses 5 hours in producing such good. Then, it can be deduced that Japan has an absolute advantage over Brazil.
Answer:
Option C is correct.
<u>The required rate of return for Mercury Inc., assuming that investors expect a 5% rate of inflation in the future is 18%.</u>
Explanation:
Real risk free rate = 3%
Inflation Premium = 5%
Nominal risk free rate Rf = Real risk free rate + Inflation Premium = 3% + 5% = 8%
Market risk premium (Rm –Rf) = 5%
Beta = 2
As per CAPM, required rate of return = Rf + beta * (Rm – Rf) = 8% + 2 * 5% = 18%
Answer:
1/Oct : Cash (Dr.) $8,660
Accounts Receivable (Cr.) $8,660
10/Oct : Equipment & Supplies (Dr.) $9,660
Notes Payable (Cr.) $9,660
20/Oct : Accounts Receivable (Dr.) $2,640
Service Revenue (Cr.) $2,640
Explanation:
Debits $16,960
Cash 6,600
Accounts Receivable 1,840
Supplies 1,840
Equipment 4,660
Dividend 2,020
Credits : $16960
Accounts Payable 4,660
Notes Payable 9,660
Service Revenue 2,640
