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Sphinxa [80]
3 years ago
13

During the year, Sheldon Company had net credit sales of $40,000. At the end of the year, before adjusting entries, the balance

in Accounts Receivable was $11,500 (debit) and the balance in Allowance for Bad Debts was $670 (credit). If the company uses an income statement approach to estimate bad debts at 7%, what is the ending balance in the Allowance for Bad Debts account? O A. $1,475 OB. $3,470 ○ C. $2,130 OD, $2,800
Business
1 answer:
telo118 [61]3 years ago
3 0

Answer:

B. $3,470

Explanation:

An income statement approach to estimate bad debts involves the estimation of bad debt as a percentage of credit sales.

Given the following information about Sheldon Company;

net credit sales = $40,000

Accounts Receivable = $11,500

Allowance for Bad Debts = $670

Estimate of bad debts = 7% × $40,000

                                     = $2,800

Ending balance in the Allowance for Bad Debts account = $2,800 + $670

= $3,470

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A decrease in the price of domestically produced industrial robots will be reflected in a. both the GDP deflator and the consume
andrezito [222]

Answer:

The correct answer is option c.

Explanation:

A consumer price index measures the change in the price level of weighted average of a basket of goods and services purchased by the consumers.  

GDP deflator measures the change in the price of all domestically produced goods and services.  

A change in the price of domestically produced industrial robots will be included in the GDP deflator as it includes the prices of all domestically produced goods and services.  

But it will not be included in the CPI as the industrial robots are not purchased by consumers in households, they are not consumer goods.

8 0
4 years ago
1. What's NOT an assumption we usually make about costly products and services?
zloy xaker [14]

Answer:

B

Explanation:

I would assume the correct answer would be B. This is because when you go to a store you typically assume the higher cost item is of higher quality then the lower cost item. For example: One may buy a yeti cooler over an igloo cooler because the very high price tag makes them feel as if the cooler is just that much better then the competitor. If correct please mark brainliest.

3 0
3 years ago
What actions would the fomc likely take if it were to pursue contractionary monetary policy using open market operations?.
tamaranim1 [39]

The key movements via are to increase the economy consist of a decreased bargain fee, buying government securities, and a decreased reserve ratio.

<h3>When the Fed makes use of contractionary policy?</h3>

When GDP in a kingdom is growing too fast, inflicting inflation to grow past a suited charge of two%, central banks will put in force a contractionary economic coverage. The Federal Reserve, or any principal financial institution, has three primary pieces of equipment to reduce the money supply.

A direct advantage of contractionary economic coverage is that it strengthens government budgets. As an instance, whilst the Fed's bargain price increases, the government earns extra cash from the banks that borrow budget from the Fed's cut price window. The government can use this supply of sales to offset spending and decrease price range deficits.

Learn more about contractionary monetary policy here brainly.com/question/27500362

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3 0
2 years ago
The shape of Spain's production possibilities frontier (PPF) should reflect the fact that as Spain produces more digital cameras
Vilka [71]

Answer:

Remain constant.

Explanation:

As Spain produces more digital cameras and fewer camcorders, the opportunity cost of producing each additional digital camera <u>remain constant. </u>

Production possibility frontier is a curve that show how different combination of product are produced using limited resources. It demonstrate that how production of one goods need to be decreased to produce higher number of other goods.  

Opportunity cost is constant, as tradeoffs are the same regardless of where you are on the line, same slope at any point.

4 0
3 years ago
Research indicates that male entrepreneurs tend to start their first significant venture in their middle 30s, while women entrep
Dmitry [639]

Answer:

False

Explanation:

According to Pamela Webbers research in the U. S

40% of men started their first entrepreneurial venture before the end of their 35th year, while only 33% of women fell into this category.

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