Answer:
Kingbird Company
a. The amount of Net Sales = $5,040.
b. The amount of the estimated liability for refunds = $180
Explanation:
a) Data and Calculations:
Units of products sold to Logan Inc. = 290
Selling price = $18
Sales revenue = $5,220 ($18 * 290)
Cost of each unit = $11
Expected returns = 10/290 = 0.03448
Net sales = $5,220 * (1 - 0.03448)
= $5,040
Estimated liability for refunds = $180 ($5,220 - $5,040)
Answer:
Debit : Allowance for doubtful debts = $2900
Credit : Accounts receivables = $2900
Explanation:
An account for allowance for doubtful debts is a contra account created, predicting that certain debtors will not be able to pay for the goods and services they purchased. This may be based on historical experiences. Doubtful debts aren’t officially uncollectible, it is simply an estimation made, but bad debts are, where you have officially written off a certain accounts receivable as uncollectible.
An allowance for doubtful debts is recorded in the balance sheet, directly under accounts receivables. Bad debts are recorded as an expense in the income statement. When there is an allowance for doubtful debts, the bad debts account is debited and the allowance for doubtful debts account is credited.
According to the question, the balance was $2,200 (Cr) in the allowance for doubtful debts account. The initial expected amount for allowance for doubtful debts was $5100 (Cr). This means that the difference was the amount that was declared as uncollectible and officially written off i.e. bad debts. Thus $2900 ($5100 -$2200) would have been confirmed as bad debts.
The entry to record the above transaction is:
Debit : Allowance for doubtful debts = $2900
Credit : Accounts receivables = $2900
Answer: True- An uncontrollable change in the marketing environment
Explanation:
According to the given question, The manager of the store is noticed that the regular customer of his store is reducing day by day and the customers starts shopping from Walmart super-center.
So, the main fundamental marketing problem is illustrated based on the given scenario is that an uncontrollable change in marketing environment.
An uncontrollable factors basically influencing the various types of organizational factors such as performance, demographics and the technological factors.
Therefore, The given answer is correct.
Answer:
Decrease
Explanation:
Fiscal policy is an important policy tool which is used by the government to account for revenue and expenses. During a boom stage, when the economy is improving the government implements more taxes. Similarly, in a recession period, where economic growth is negative an expansionary discretionary fiscal policy is applied. In this type of fiscal policy, taxes and government expenses both are concentrated to remove the pressure.
