If the price of natural gas rises, the price elasticity of demand is likely to be the highest one year after the price increase.
<h3>What is the price elasticity of demand?</h3>
A measure of a product's consumption shift in response to a price change is called price elasticity of demand. The quantity shift in percentage terms divided by the price change in percentage terms is used to determine the price elasticity of demand.
The price elasticity of demand would probably be at its peak if the price of natural gas increased. Elasticity will be strongest in the long run since consumers would start exploring alternatives as a result of ongoing price increases.
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Answer:
Cash flow from operations = $300,000
Explanation:
Using the indirect method we must adjust income for the non-cash transaction.
Net income = $250,000
Depreciation = $30,000
Decrease of $20,000 in accounts receivable
Increase in bonds payable of $50,000.
Cash flow from operations = Net income + Depreciation + Decrease in accounts receivable =
Cash flow from operations = $250,000 + $30,000 + $20,000 = $300,000
Answer:
<h2>How to record a credit sale:</h2>
The General Journal or Sales Journal (a subsidiary journal) if the volume of credit sales is on the high side can be used.
i) Using the General Journal:
Date Description Debit Credit
xxx Accounts Receivable (Marjorie Customer) $$$
Sales Revenue $$$
To record the sale of goods on credit, terms n/30.
ii) Alternatively, the Sales Journal is used:
Date Description Amount
xxx Marjorie Customer $$$
other customers $$$
Total (Accounts Receivable) $$$
Explanation:
The General Journal is an all-purpose journal, which can be used to initiate the recording of business transactions. It shows the accounts to be debited and the ones to be credited in the General Ledger.
The use of a subsidiary journal, e.g. a Sales Journal, helps to summarize the particular type of transaction for a period before the total is posted to the control account in the general ledger and the individual customer accounts in the Subsidiary Ledger.
