Answer: $51
Explanation:
A, B, C, D, E, F, G were purchased for $2.50 per letter which means they cost;
= 7 * 2.50
= $17.50
H to L were purchased at $4.50 per letter which means they cost;
= 5 * 4.5
= $22.50
M to R were purchased at $5.50;
= 6 * 5.5
= $33
Total inventory cost = 17.50 + 22.50 + 33 = $73
Inventory sold = 2.5 + 2.5 + 2.5 + 4.5 + 4.5 + 5.5
= $22
Ending Inventory = Total inventory - inventory sold
= 73 - 22
= $51
Answer: Option D
Explanation: In simple words, short run refers to the time frame in which all the factors of production are fixed while in the long run all of them are variable.
This happens due to the fact that in the short run if the company goes for changing the level of inputs than the opportunity that were availing in that time period will be gone by then leading to losses as the total time frame is very less in short run.
On the other hand, firms tends to have greater life in the market and keeps developing themselves with the changing forces of market.
Answer: The correct answer is b. debit to Bad Debts Expense for $1,800.
Explanation: The company adopts the aging bad debt method on receivable. The aging method is a way of classifying receivables as uncollectible based on the length of time the receivables have been outstanding and the probability of recoverability of such receivables.
To make a provision for bad debt expense: debit is passed to bad debt expense while credit is passed to allowance for doubtful accounts. The bad debt expense reports to the income statement while allowance for doubtful accounts reports to the balance sheet (statement of financial position). Based on the question, the allowance for doubtful accounts has a credit balance of $1,200; however, $3,000 was estimated to be uncollectible. In order to restate the amount to $3,000, we need to debit bad debt expense and credit allowance for doubtful accounts with $1,800 ($3,000 - $1,200).
The firm is not engaging in international trade is True.
(B) The firm is using a regional approach to international expansion.
<u>Explanation:</u>
When a company wants it's business to grow and expand in a new country it uses the regional approach. It is generally used when the company is quite established and it has a nice foothold in the country.
In the regional approach the business is first set up in the country and when it gains power it starts spreading across the borders to get a region as a whole.
