Answer:
F. $500
Explanation:
At the end of the period, accounts receivable balance of $40,000
Bad debts are estimated: 2% x $40,000 = $800
Before adjusting, allowance for doubtful accounts balance of $300 (credit) and the company uses the allowance method to account for bad debts. Therefore,
Bad debts expense = $800 - $300 = $500
The entry will be made:
Debit Bad debts expense $500
Credit Allowance for doubtful accounts $500
Answer:
D. the desire to have goods and services sooner rather than later (all other things being equal).
Explanation:
The time preference talks about the placing relative value on goods received at an earlier date compared with receiving that particular goods at a later date. It is the assumption that people prefer a given goods or services be delivered sooner rather than later all things being equal. It occurs when a person focus on having a good sooner rather than later.
The advantages are that you don't have to worry about carrying cash, you have a record of your spending, you can make purchases even if you don't actually have the money, some credit cards give you rewards, and most importantly you get to build your credit, provided you pay the bill on time.
Answer:
E. 12,500 units
Explanation:
Contribution margin = Sales - Variable cost = $6800000 - $2800000 = 40,00,000
Contribution margin per unit = 4000000/20000 = $200 per unit
Break-even Point = Fixed cost/Contribution margin per unit = $2500000/$200 = 12500 units
