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horrorfan [7]
3 years ago
15

In the short run, the quantity of output that firms supply can deviate from the natural rate of output if the actual price level

in the economy deviates from the expected price level. Several theories explain how this might happen.
For example, the sticky-price theory asserts that the output prices of some goods and services adjust slowly to changes in the price level. Suppose firms announce the prices for their products in advance, based on an expected price level of 100 for the coming year. Many of the firms sell their goods through catalogs and face high costs of reprinting if they change prices. The actual price level turns out to be 90. Faced with high menu costs, the firms that rely on catalog sales choose not to adjust their prices. Sales from catalogs will _______, and firms that rely on catalogs will respond by _______ the quantity of output they supply. If enough firms face high costs of adjusting prices, the unexpected decrease in the price level causes the quantity of output supplied to ______ the natural rate of output in the short run.
Business
1 answer:
sertanlavr [38]3 years ago
5 0

Answer: a

Explanation :

a

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b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the
inessss [21]

Question Completion:

Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis.

                                                        Days Past Due  

                          Total          0          1 to 30       31 to 60   61 to 90  Over 90

Accounts

receivable  $570,000 $396,000  $90,000  $36,000   $18,000  $30,000  

Percent uncollectible          1%             2%             5%             7%           10%  

a. Complete the below table to calculate the estimated balance of Allowance for Doubtful Accounts using the aging of accounts receivable method.

Answer:

Daley Company

a. The estimated balance of Allowance for Doubtful Accounts using the aging of accounts receivable method is:

= $11,820.

b. Adjusting Journal Entry:

Debit Bad debts expense $6,420

Credit Allowance for Doubtful Accounts $6,420

To record bad debts expense and bring Allowance balance to $11,820.                      

c. Adjusting Journal Entry:

Debit Bad debts expense $13,720

Credit Allowance for Doubtful Accounts $13,720

To record bad debts expense and bring Allowance balance to $11,820.  

Explanation:

a) Data and Calculations:

Ageing of Accounts Receivable:

                                                        Days Past Due  

                          Total          0          1 to 30       31 to 60   61 to 90  Over 90

Accounts

receivable  $570,000 $396,000  $90,000  $36,000   $18,000  $30,000  

Percent uncollectible          1%             2%             5%             7%           10%

Allowance      $11,820     $3,960      $1,800     $1,800      $1,260    $3,000

Bad Debts Expense:

Allowance for Doubtful Accounts:

                                         b.                                 c.

Unadjusted balance $5,400 credit              $1,900 debit

Adjusted balance       11,820 credit               11,820 credit

Bad debts expense $6,420                       $13,720

8 0
3 years ago
After Juan wrote down the week's tasks, schoolwork, and after-school activities in his assignment notebook, he highlighted all t
Nimfa-mama [501]

Answer:

Its B

Explanation:

5 0
2 years ago
Read 2 more answers
Which type of savings institution is owned and operated by the same people who have accounts in it
inn [45]

A credit union is owned and operated by the people who have accounts in it. In a traditional bank, the bank is run by a president and a board of higher people. In a credit union, all members of the union own a stake of the company and the board is made up of members of the credit union.

7 0
2 years ago
Read 2 more answers
Which of these terms is most closely related to tradeoffs?
ohaa [14]
Hello!

You forgot the alternatives!

incentives 
<span>margin </span>
<span>markets </span>
<span>scarcity
</span>
The term that is most closely related to trade-off, from the list above, is: scarcity. Scarcity is the condition that moves the trade-offs, it determines the quantity of each product you need or have. So, for example, if you need a product that you don't have enough and another that you have in excess, you can exchange it with someone that have interest in your product and has the one that you need.

Hugs!
7 0
3 years ago
Suppose Ruston Company has the following results related to cash flows for 2018: Increase in Debt of $700,000 Dividends Paid of
AveGali [126]

Answer:

Cash flow <em>generated </em>from financing activities 400,000

Cash flow <em>used </em>in Investing activities 7,800,000

Explanation:

700,000 debt receive

-500,000 dividends paid

200,000 other adjustment on Financing

400,000 TOTAL CASH GENERATED

-8,300,000 purchase of PPE

500,000 other adjustment on Inventing

-7,800,000 TOTAL CASH USED

<u>Notice: </u>There is no hint about the adjustment being related as negative, so it should be assuem are positive cashflow.

5 0
3 years ago
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