Answer: The amount of bad debt expense the company would record would be $3,470.
Explanation: Bad debt expense is an estimate of accounts receivable that is deemed as uncollectible while allowance for doubtful accounts is a balance sheet allowance account that warehouses the total balance of accounts receivable that is deemed irrecoverable.
In this scenario, Simple Co. estimated, using the aging method, that the allowance for doubtful accounts is $3,800. However, it had a credit balance of $330 in the same account. The reinstate the allowance account to $3,800, $3,470 has to be adjusted for by debiting bad debt expense and crediting allowance for doubtful account.
I think the answer is A but i could be wrong
Answer:
d) The change to the equilibrium price of French chocolate souffle is ambiguous and the equilibrium quantity of French chocolate souffle falls
Explanation:
Inferior goods are those goods whose demand falls with the rise in the income of the consumer.
As per the given case, French chocolate souffle is an inferior good. When income of the consumer rises, his demand for French chocolate souffle will fall.
Similarly, when producers of such an inferior good decrease, the supply of French chocolate souffle shall fall.
With respect to the original equilibrium level, the demand curve shall experience a leftward shift i.e decrease whereas the supply curve too experiences a leftward shift i.e supply falls.
At the new equilibrium level, definitely the equilibrium quantity shall fall, but the change in equilibrium price cannot be ascertained as per the given information.
Selling price = $4.50
Copies sold = $1 million
Fixed costs = $1 million
Unit variable costs = $0.50 per magazine
Sales = $4,500,000
Fixed costs = $1 million
Variable costs = $500,000
Revenue = Sales - fixed costs - variable costs
Revenue = $4,500,000 - $1,000,000 - $500,000
Revenue = $3,000,000
Answer:
It does not consider all the unemployed people.
Explanation:
The unemployment rate is a percent expression of the jobless labor force in an economy. In calculating the unemployment rate, the bureau of labor statistics considers only the unemployed people who have been actively seeking work in the past four weeks.
Due to this reason, the unemployment rate does not include all the jobless people in the country. Unemployed individuals who have lost hope of finding work, and those who did seek employment get excluded. Those engaged in other chores like caring for the sick or the elderly are also not considered.
