Answer:
The amount of Bad Debt Expense reported in 2019 was $16,100.
Explanation:
Our concern is mainly on the allowance for doubtful accounts. Based on the facts given in the question, the opening balance of the allowance account was $79,900 credit balance, while the closing balance was $96,000 credit. Since there were no write-offs or recoveries during 2019, the bad debt expense is simply the difference between the closing balance and the opening balance i.e, $96,000 - $79,900 = $16,100.
The journal entries will be:
Debit Bad debt expense $16,100
Credit Allowance for doubtful account $16,100
<em>(To record the bad debt expense for 2019) </em>
Answer: William should replace the machine with a new one because over that 2 year span he will be losing less money, if he were to repair he would lose more money.
Explanation:
Answer:
price ceilings; shortage
Explanation:
Price control is defined as government imposed prices to regulate the way forms make profit in the market. Take for example if a product is in high demand and firms can raise prices very high to make profit. To protect the consumer the government will set a price ceiling to limit price increase.
In Venezuela when price ceilings were implemented the sellers will create artificial shortage which forces the consumer to buy at higher prices in a black market arrangement.
Answer:
Consumer Surplus
Explanation:
Consumer Surplus occurs when a expensive item is available at a discounted price in the market. The difference in price charged by the market and the discounted price of the similar product is customer surplus. In this question, the consumer surplus is:
Customer Surplus = $50 average price in the market - $40 Discounted Price
Customer Surplus = $10
Answer:
Pollution permits are a market-based scheme aimed at reducing pollution and trying to encourage firms to reduce the quantity of pollution they create.
Explanation:
