Answer: Please see the required journals below:
December 31:
Debit Bad debt expense $6,034
Credit Allowance for doubtful accounts $6,034
February 1:
Debit Allowance for doubtful accounts $431
Credit Accounts receivables $431
June 5:
Debit Cash $431
Credit Bad debt recovery (income statement) $431
Explanation: The company estimates its bad debt expense as percentage of sales. In this case 0.7% of its annual sales of $862,000 was deemed as uncollectible, that is, 0.7% x $862,000 = $6,034. The required journals to recognize this bad debt expense is provided above. However, since there was an existing provision, which resides in the allowance account, a write-off would definitely hit that account in order to extinguish the accounts receivable portion. Upon recovery of the write-off, we cannot reinstate the receivable since it was already extinguished but we need to recognize the recovery as a gain.
Answer:
C. The Fed should target the money supply, not the interest rate, and that it should adopt the monetary growth rule.
Answer:
The correct answer is B. The vendor has latitude in establishing prices for the other party's goods or services.
Explanation:
In an ideal scenario, both sellers and buyers should agree on the price and conditions of a product, in order to avoid speculation and subsequent conflicts. In the event that a seller is the one who has the freedom to decide the conditions such as price or distribution, he is acting as a commercial agent, since he is autonomously deciding on aspects that should correspond to the buyer as the main agent.
Answer:
D
Explanation:
If there is more bread for a low price more people will come.
I did this before.
P.S.S Please press the crown if you will.
Answer:
Differential pricing
Explanation:
Differential pricing , also known as discriminatory pricing is a pricing strategy in which the same product are sold to different customers at different prices.It enables companies to take advantage of unique customers valuation.
Even though is mostly seen as a legal way of pricing just like the other pricing methods , but in a situation where it is biased towards a category of people because of their tribes , gender religion other discriminatory factors , it becomes an illegal act.
