As the company uses the allowance method of accounting for uncollectible accounts, the company would actively review and book bad debt expenses for any debt in doubt of collection. The entry would be: Dr Bad Debt Expenses & Cr Allowance for doubtful debt.
When there is sufficient evidences that these debts go default, no more expenses will be recorded, instead, the account receivable will be written off ( Cr) with the offsetting entry is Dr Allowance for doubtful debt.
When production is very high but demand is very low, it can lead to a <u>"recession".</u>
A recession is the point at which the economy decreases fundamentally for no less than a half year. That implies there's a drop in the accompanying five financial markers: genuine GDP, pay, business, assembling, and retail deals.
A recession is typically in progress when there are a few fourth of abating yet positive development. Frequently a fourth of negative development will happen, trailed by positive development for a few quarters, and after that another quarter of negative development.
A niche competitive advantage is gained when a business targets a small segment of the market and effectively serves them.
Forming a niche market leads to less competition as the business is specialised in this field, there is clear focus as a small targeted customer base is to be satisfied, and results in specialised skills or market expertise.
Yuengling only sold in a ten-state area on the Eastern Seaboard for over 170 years, giving them a niche competitive advantage.
