I would say that Wikipedia could be used to research the benefits and drawbacks of the free enterprise system in terms of the advancement in scientific enquiry that took place during the Renaissance and the Industrial Revolution thanks to the advent of capitalism (after feudalism). On the other hand, the same source could show the adverse working conditions for even women and children in the underground coal mines in England during the Industrial Revolution (intense exploitation).
Answer:
A. Debit: Bad Debt Expense 2,500
Credit: Allowance for Doubtful Accounts 2,500
250,000 x .01 = 2,500
B. Debit: Bad Debt Expense 2,750
Credit: Allowance for Doubtful Accounts 2,750
3,000 - 250 = 2,750
Answer: c. capital loss.
Explanation:
A capital loss refers to a scenario where the price of a security falls below the price at which it was purchased. This is what happened to the Alpha Industries stock above as the price dropped from $39 to $37 which led to a capital loss of $2.
The dividends paid seem to outweigh the capital loss but we cannot be certain of this unless we know the tax rate being applied to the dividends and because these are usually high, the after tax dividends might have been lower the capital loss of $2.
