Answer:
- Dr Bad Debt expense 6,000
- Cr Allowance for Doubtful Accounts account 6,000
Explanation:
The total estimated bad debts are $4,800 (= $80,000 x 6%). So the Allowance for Doubtful Accounts account ending balance should be $4,800. Since this account is a contra asset account, the ending balance should be $4,800 credited.
But currently the account has a $1,200 debit balance (it's like -$1,200), so the adjustment record must be = $4,800 + $1,200 = $6,000
That way the ending balance = $6,000 - $1,200 = $4,800
The journal entries should be:
- Dr Bad Debt expense 6,000
- Cr Allowance for Doubtful Accounts account 6,000
Answer:
move along upwards
shift out
shift in
Explanation:
A change in price of a good leads to a movement along the supply curve and not a shift of the supply curve.
Other factors other than a change in the price of the good would lead to a shift of the supply curve. Such factors include :
- A change in the price of input
- A change in the number of suppliers
- Government regulations
When the price of corn increases, the quantity supplied of corn increases. this is in line with the law of supply.
according to the law of supply, the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.
This would lead to a movement up along the supply curve
If the price of seed which is an input to corn decreases, it becomes cheaper to produce corn. As a result, the supply of corn would increase. this would lead to an outward shift of the supply curve.
If the number of grocery stores decreases, there would be a reduction in supply. As a result, the supply curve would shift inwards
Answer:
Annual depreciation= $10,160 a year
Explanation:
Giving the following information:
Ivanhoe Company purchased a new machine on October 1, 2017, for $77,980. The company estimated that the machine has a salvage value of $6,860. The machine is expected to be used for 72,900 working hours during its 7-year life.
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (77,980 - 6,860)/7= $10,160 a year
Answer:
<em>Deflation</em>
Explanation:
<em>Deflation is the overall decrease in products and services prices when the rate of inflation drops below 0%</em>. it naturally occurs when an economy's money supply is fixed.
The buying power of currency and salaries in moments of deflation is greater than they would have been.
This is different but comparable to <em>price deflation, which is a general price level reduction.</em>
Answer:
$24.8 per hour.
Explanation:
Emma can only work for 25 hours in a week.
Total she needs to make =$620.
So, each hour she has to make sales worth =620/25 =$24.8
