Answer:
1. Menu costs
- Can lead to stores listing prices in more stable currencies.
- Causes costs associated with changing prices in stores.
2. Shoe-leather-costs
- Discourages people from holding money.
- Spending time converting money into something that better holds value.
3. Unit-of-account costs
- Can reduce the quality of economic decisions.
- Makes money a less reliable source of measurement.
- Can cause distortion to the tax system.
- Causes difficulty in firms and individuals financial planning.
They make laws to regulate the economy. Hope this helps :)
Answer:
December 31, 2020
- Dr Bad Debt expense 18,690
- Cr Allowance For Doubtful Accounts account 18,690
Explanation:
First we need to determine the total amount of uncollectible accounts receivable = $385,600 x 6% = $23,100
Then we must subtract the amount already recorded in allowance for doubtful accounts from our total uncollectible accounts = $23,100 - $4,410 = $18,690
We have to debit the difference and credit the contra asset account:
Dr Bad Debt expense 18,690
Cr Allowance For Doubtful Accounts account 18,690
Answer: 11.87%
Explanation:
Effective interest rate on this loan is:
= Interest payment / (Note - Interest payment) * 12/8 months
Interest payment:
= Note * Interest rate * 8/12 months
= 100,000 * 11% * 8/12
= $7,333
Effective interest:
= 7,333 / (100,000 - 7,333) * 12/8
= 11.87%
