Answer:
Sales Discounts 190 debit
Allowance for Sales Discounts 190 credit
Explanation:
From the current accounts receivable, the company has 10,000 within discount period and t expect the customer will take them so:
10,000 x 2% = 200 expected discount
currenly the accouting balance for the expected discount is 10 so:
200 - 10 = 190 allowance for sales discounts adjustment.
Remember we do this adjustment to match the expenses or discount withthe period they are generated. Not doing so, will imput discount to the next period for transaction which occurs in the current one.
Answer:
Option E Price Escalation
Explanation:
Price Escalation is when the government imposes additional taxes on the product which is exported to their country, this makes the product expensive and the customer as a result don't buys that product. Such type of increases in prices are known as price escalation.
Increase price value profit becomes higher than price, what happens to a company
Answer:
C) policy uncertainty
Explanation:
- Policy uncertainty is the class of economic risks associated with the irregular economic policy of a particular country's government. Policy uncertainty discourages investment and increases the investment risk factor of the economy.
- This can come from the regime's volatile and unpredictable monetary or fiscal policy or unpredictable regulatory framework.
so correct answer is C) policy uncertainty
