Answer and Explanation:
The Journal entry is shown below:-
a. Bad Debt Expense Dr, $36,800 ($40,000 – $3,200)
To Allowance for Doubtful Accounts $36,800
(Being the bad debt expense is recorded)
For recording this we debited the bad debt expense as it increased the expenses and at the same time it reduced the assets so the allowance for doubtful accounts is credited
b. Bad Debt Expense Dr, $40,730 ($40,000 + $730)
To Allowance for Doubtful Accounts $40,730
For recording this we debited the bad debt expense as it increased the expenses and at the same time it reduced the assets so the allowance for doubtful accounts is credited
for a business to be viable,it must make a good or proper sales
Answer:
True
Explanation:
A company manager should be able to appraise its operations profit and capital used to generate the profit.
Answer:
The correct answer is letter "A": an increase in the price of the firm’s output.
Explanation:
Externalities are costs paid by individuals who are not involved in causing it. The typical example of an externality is a company's pollution. Governments set regulations and penalties to corporations provoking pollution but to mitigate those costs the fined entities rise the price of their products. Thus, eventually, the consumer is the affected of the situation.
However, <em>externalities can be positive. Just like in the example, the green cover of Tampa Power and Light Company benefits Tampa citizens. To incorporate the cost of this benefit will imply rising the price of the firm's output (electricity) so resources can be efficiently allocated.</em>