The unadjusted trial balance at the end of the year includes the following: Accounts Receivable $98,000 Allowance for Doubtful A
ccounts 1,000 Both accounts have normal balances. The company uses the aging of accounts receivable method. Its estimate of uncollectible receivables resulting from the aging analysis equals $5,800. What is the amount of Bad Debt Expense to be recorded for the year
<u>Aggregate Supply</u> is the total quantity of goods & services, all the sellers in economy are planning to sell, in an economy during a period of time. Short Run Aggregate Supply is upward sloping, as supply is directly related to price level.
If there is future <u>pessimism </u>in economy; due to corporate scandal, international tensions, and loss of confidence in policymakers. Then, producers will be apprehensive about their products sale, will also feel price vulnerable. This would imply that the short run aggregate supply would decrease, the SRAS curve would shift leftwards.
Compensating balance is the balance which is to be minimum amount that is to maintained or kept in the bank account, so that could be used to offset the cost incurred by the bank for setting up the loan.
It is that balance which is not available for the company to use and might be needed to disclose in the notes of the borrower in the financial statements.
So, it is a specific kind of collateral, allow bank to monitor payment practice of firms and require to have a minimum amount that borrower need to keep in the checking account.
<span>The company president does not believe that the formula should be altered for fear it will tarnish the company's brand. </span>She prefers that the company spend more on marketing and
increase the price. The company’s accountants believe that if marketing costs are increase
by $400,000 then the company can achieve a selling price of $42 per bottle without losing
any sales. At this price, will the company achieve its target operating income of 40% of
Increase in marketing costs=
Total costs of redesigned table =
Revised cost per unit ($10,000,000 ÷ 400,000 units)
Target cost per unit ($42 × 0.60)
Yes, this proposal allows the company to meet its goal of target costs less than 60% of
revenue and target operating income greater than 40% of revenue.