Answer:
simple interest with rate,time and principle
shaun recommends that the organization do everything it can to lower the organizational costs required to produce widgets while still charging customers the same price for the product. shaun is recommending the strategy. cost cutting cost leadership differentiation niche
Shaun advises the company to take every possible measure to reduce its overhead expenditures. The cost leadership approach is what Shaun advises.
Having the lowest operating costs in your sector gives you a competitive edge. This is called cost leadership. Efficiency of the business, its size, scope, and experience are frequently what determines cost leadership (learning curve). A cost leadership strategy seeks to take expenditures advantage of economies of scale, clearly defined scope, and other economies (such as a good purchasing technique), creating highly standardized goods using cutting-edge technology.
More and more businesses in recent years have opted for a strategic blend to win market leadership. These trends include expenditures concurrent cost leadership, top-notch customer service, and product leadership. Due to its cost leadership strategy, Walmart has been successful all over the world.
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if you are interested in learning more about supply chain management as a major or a career, connect with bauer's supply chain management student organization, spo by:
Numerous executives at HP, including the VP of Procurement, career have degrees from Bauer ("Buy" Function) supply chain management.
The breadth and depth of information that our SCM majors acquire in their classes has also been proved to help our alumni succeed in their careers over time.
A supply chain is a network that connects all the people, businesses, resources, activities, and technology involved in the creation and distribution of a product. A supply chain includes everything from the flow of raw materials from a supplier to a production facility to the final distribution to the end user.
Supply chain management is the practice of coordinating the various procedures needed to produce and distribute goods and services to a firm's clients. Supply-chain Management involves manufacturing, packing, farming, design, and transportation.
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if authorities believe that the natural rate of unemployment is lower than it actually is and pursue fiscal policies to move economic output to what they believe full employment to be, then which of the following is most likely to occur in the long run? a. an increase in the unemployment rate. b. a recession. c. an increase in the inflation rate. d. a depression.
A rate of unemployment that is lower than the natural rate suggests that the economy is expanding at a rate that is faster than the maximum rate that is sustainable. This puts more pressure on wages and prices in general, which leads to more inflation.
Is there a difference between the actual unemployment rate and the natural rate of unemployment during a recession?
natural unemployment rate is the rate of unemployed people in an economy when there is full employment; The current unemployment rate is higher than the natural rate when an economy is in a recession. The current unemployment rate is lower than the natural rate during expansions.
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A rate of unemployment that is lower than the natural rate suggests that the economy is expanding at a rate that is faster than the maximum rate that is sustainable. This puts more pressure on wages and prices in general, which leads to more inflation.
Is there a difference between the actual unemployment rate and the natural rate of unemployment during a recession?
natural unemployment rate is the rate of unemployed people in an economy when there is full employment; The current unemployment rate is higher than the natural rate when an economy is in a recession. The current unemployment rate is lower than the natural rate during expansions.
If the actual rate is higher than the natural rate, the economy is in a slump, which is more technically known as a recession. On the other hand, if the actual rate is lower than the natural rate, inflation is expected to happen right away because it is thought that the economy is overheating.
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An automobile salesperson uses ________ when it accesses a mobile system to obtain the latest information on consumer demand for electric vehicles.
An automobile salesperson uses the internet when he accesses a mobile system to obtain the latest information on consumer demand for electric vehicles.
Customers wishing to buy a new or used automobile are helped by the car salesperson. Customers are engaged in conversation to discuss their needs, wants, and budgets with them in order to assist them in locating the right automobile. The auto salesman places orders and coordinates payments with the shipper in addition to selling automobiles. Automotive marketing enables you to interact with potential automobile buyers, including both in-market and near-market audiences (shoppers who may be 3–6 months away from making a purchase) and higher-intent shoppers who are less than 3 months away from purchasing a car).
Electric vehicle sales in the United States quadrupled to 630,000 units sold in 2021 or 4.5% of the market. Although sales volumes of electric cars in emerging nations have more than doubled, they are still relatively modest. After additional growth in sales, we predict that the worldwide EV sales share will be about 13% in the first half of 2022.
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The __________ view is that fdi has both benefits and costs. Fdi can benefit a host country by bringing capital, skills, technology, and jobs, but those benefits come at a cost.
The pragmatic nationalist view is that fid has both benefits and costs. Fid can benefit a host country by bringing capital, skills, technology, and jobs, but those benefits come at a cost.
What is the radical FDI perspective?According to the radical viewpoint, multinational corporations serve as imperialist instruments for exploitation of host nations. This viewpoint holds that no nation should accept FDI. By the end of the 1990s, the radical viewpoint had virtually disappeared due to the fall of communism.
What are the advantages and disadvantages of FDI to host nations?Employment growth and economic expansion.
Develop human resources.
3. Development in Regressive Areas
offering of finances and technology
Exports are increasing.
Rate of exchange stability.
Economic Development Stimulus.
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on april 1, year 1, maine corporation paid $10,100 cash in advance for a one-year lease on an office building. assume that maine records the prepaid rent as an asset and that the books are closed on december 31.
The payment for one-year lease and the related adjusting entry in order to recognize rent expense in an accounting equation is shown below.
Maine Corporation
The Accounting equation for the year of 2016 is shown
Event Cash Prepaid rent = Common stock
Retained earnings
Paid rent in advance ($10,100) $10,100 =
Adjusted rent expenses ($8,383) = ($8,383)
Total ($10,100) $1,717 = $8,383
Shown below is the calculation of adjusted rent expense -
The adjusted rent expenses = The prepaid rent × No. of months /Total months in a year.
= $10,100 × 10 / 12
=$8,383
Hence, so the adjusted rent expenses are $8,383.
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a check for $342 was erroneously charged by the bank as $432. in order for the bank reconciliation to balance, you must add $90 to the bank statement balance.
True. A check for $342 was erroneously charged by the bank as $432. in order for the bank reconciliation to balance, you must add $90 to the bank statement balance. The bank should credit the excess amount of $90.
What is the journal entry for bank reconciliation?Journal Entry Definition in a Bank Reconciliation When there are changes to the balance according to the books, a bank reconciliation needs journal entries. These adjustments are the result of things that were on the bank statement but were not reflected in the general ledger accounts of the business.
Charged $432 instead of $342, debiting $90 in excess that the bank ought to credit. Therefore, in the bank reconciliation, it needs to be added to the Bank balance.
Thus, the given statement is true.
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a friend wants to learn how the unemployment rate is calculated and how inflation is measured. he asks you which economics course to take and you advise him to enroll in group of answer choices either micro- or macroeconomics. they both concentrate equally on those issues.
A. Macroeconomics will be the course opted to learn about unemployment rate and inflation in country.
The study of macroeconomics examines factors that have an impact on the overall economy, such as inflation, unemployment, price levels, economic growth, economic decline, and their interactions.
In macroeconomics the unemployment rate is the proportion of grown ups who are in the labour force but do not have work, not the percentage of the adult population as a whole: Unemployment rate = Unemployed people/Total labour force 100
A macroeconomic measure called inflation shows how quickly prices for goods and services are increasing overall. In the end, it demonstrates the rupee's declining purchasing power. It is quantified in percentage terms. This percentage represents the change from the prior period, either upward or downward.
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Complete Question: A friend wants to learn how the unemployment rate is calculated and how inflation is measured. He asks you which economics course to take and you advise him to enroll in?
a. microeconomics.
b. either micro- or macroeconomics. They both concentrate equally on those issues.
c. macroeconomics.
d. financial accounting because economics doesn't address those topics in its courses
the following information is available: units in process, jan. 1 (60 percent converted) 2,000 units units in process, jan. 31 (30 percent converted) 1,000 units units started during the month 7,500 units total conversion costs accounted for during the month $237,600 materials are added at the beginning of the process. what is the cost per equivalent unit for conversion in jan. using the weighted average method?
The cost per equivalent unit for conversion in Jan. using the weighted average method is $30.
Under weighted average method,
Beginning inventory 2,000
Units started during the month 7,500
Ending inventory -1,000
Units completed and transferred out 8,500
ConversionUnits completed and transferred out 8,500
Ending work in process [1,000 x 30%] 300
Total equivalent units 8,800
ConversionCosts incurred $264,000
÷ Total equivalent units 8,800
= Cost per equivalent unit $30
Understanding the value of partially finished products to a corporation is done using the notion of equivalent units of production. They are helpful for process costing, or the study of cash flow in the production process.The amount of labour put into a specific quantity of physical goods is measured in equivalent units. You may easily determine equivalent units by multiplying the quantity of physical goods by the amount of work done on them.Learn more about Equivalent units, here
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An organizational ______ is someone whose accomplishments embody the values of the organization and whose accomplishments are put forth to motivate other employees to do the right thing.
An organizational hero is a person whose achievements embody the principles of the organization and are put forward to motivate other employees.
Within the context of organizational settings, organizational heroes are those individuals who are admired for their accomplishments and qulaities. They are hard-working and talented people with sheer,strenght, knowledge, and will. The organization's heroes work for long hours to complete the job tasks because other employees in the organization do not possess the required experience, knowledge, or skill to perform the tasks.
The organizational heroes are highly engaged and goal-driven people who inspire other employees to be more engaged and productive. Organizational heroes are critical to the success of the organizations more often in cases when the organizations are dealing with restructuring.
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The set of actions the federal reserve uses in order to manage the economy is known as.
Monetary coverage is a fixed of equipment utilized by a nation's crucial financial institution to govern the general cash deliver and sell financial increase and hire techniques which includes revising hobby prices and converting financial institution reserve requirements.
The required details for Monetary coverage in given paragraph
In the United States, the Federal Reserve Bank implements economic coverage via a twin mandate to obtain most employment even as preserving inflation in check. Monetary coverage is the manage of the amount of cash to be had in an economy and the channels through which new cash is supplied. Economic records which includes gross home product (GDP), the charge of inflation, and enterprise and sector-unique increase prices have an effect on economic coverage strategy. A crucial financial institution may also revise the hobby prices it fees to mortgage cash to the nation's banks. As prices upward push or fall, economic establishments alter prices for his or her clients which includes agencies or domestic buyers.
Additionally, it is able to purchase or promote authorities bonds, target overseas exchange prices, and revise the quantity of coins that the banks are required to keep as reserves.
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Carson always feels like he is putting out fires at work and does not get an opportunity to figure out where problems might arise before they occur. Carson is dealing with ______ change.
Carson feels that he is not getting opportunity to figure out where problems might arise before they occur, he is dealing with reactive change.
Change that is implemented in a company as a consequence of external factors is known as reactive change. For example, the introduction of a new employee benefit plan is proactive since leadership is confident that it will increase satisfaction and motivation among employees. If the benefits plan was implemented in response to requirements made by employees, the change would be reactive change.
Reactive change management entails the execution of modifications in response to a need, a possibility, or an unexpected circumstance in the company. When you have a process or contingency strategy in place, you can adapt to changes constructively and systematically.
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market cannibalization occurs when: group of answer choices the firm neglects product differentiation. technology makes all the difference. other companies take market share. a firm adopts a loss leader strategy. none of these answers is correct.
Marketplace cannibalization happens while: Correct Option is - The corporation neglects product differentiation.
The required details for Marketplace cannibalization in given paragraph
Market cannibalization is a income loss as a result of a company's advent of a brand new product that displaces one in every of its very own older merchandise. Market cannibalization can arise while a brand new product is just like an present product and each percentage the identical patron base. The cannibalization of present merchandise ends in no boom within side the company's marketplace percentage in spite of income increase for the brand new product.
Market cannibalization can arise while a brand new product is just like an present product, and each percentage the identical patron base. Cannibalization also can arise while a series shop or speedy meals outlet loses clients because of every other shop of the identical logo beginning nearby.
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congratulations! you just won the lottery for $3.75 million. you are given the option of receiving $1.8 million now or you can receive $150,000 at the end of every year for 25 years. if you can earn 5% interest on your investments annually, what is the value of the annuity option?
The value of the annuity option is $507,953.24 if $150,000 can be received at the end of every year for 25 years with a 5% interest annually.
The value of the annuity option of the lottery in which $150,000 can be taken at the end of every year with a 5% interest can be calculated using the compound interest formula as follows;
A = P (1 + r/n)^nt
Here A represents the final amount, P represents the initial principal balance, r illustrates the interest rate, n represents the number of times interest is applied per time period and t means the number of time periods elapsed.
Substituting the values in this equation;
A = 150,000 (1 + 0.05/1)^25(1)
A = 150,000 (1 + 0.05)^25
A = 150,000 (1.05)^25
A = 507,953.24
Hence, the value of the annuity option is calculated to be $507,953.24
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shakira starts selling various homemade crafts in her front yard each saturday morning. she can not afford an attorney and so she does not prepare any paperwork. shakira's business is most likely a(n):
Shakira's business is most likely an: Sole Proprietorship
What is a Sole proprietorship?
Sole proprietorship is when a single person carries out the business on his own risk . He as an entrepreneur bears all loss and profit of the business and holds unlimited liability.
What is the main purpose of sole proprietorship?The main advantage of a sole proprietorship are the pass-through tax advantage, the easily creation, and the low fees for creation and maintenance. With a sole proprietorship, you don't requires to fill out a large amount of paperwork, like registering with your state.
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Staintation has $70 million in assets and $50 million in owners’ equity. How much does the firm have in liabilities?
The firm has $20 million in liabilities. through the accounting concepts i.e., assets = owners equity + liabilities.
The accounting equation is the formula that states that the sum of a company's liabilities and equity equals its total assets (Assets = Liabilities + Equity). The unique relationship between a company's liabilities, assets and equity is the backbone of double-entry bookkeeping.Accounting equations are the basis of double-entry bookkeeping. The balance sheet formula shows that on a company's balance sheet, the company's total assets equal the sum of its liabilities and the company's equity. assets represent valuable resources managed by the company. Liabilities represent its obligations.Liabilities and equity both describe how a company's assets are financed.Debt financing is presented as debt and equity financing is presented as equity. increase.Thus, when assets equal to liabilities and owners' equity then we can easily bring out the liabilities i.e., $20 million.
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the audit report is important to the audit opinion formulation process since it communicates relevant information to the financial statement users, both internal and external, resulting from the audit.
It is TRUE that the audit report is important to the audit opinion formulation process since it communicates relevant information to the financial statement users, both internal and external, resulting from the audit.
A company's financial statements must adhere to generally accepted accounting standards (GAAP) and be free of major misstatements to be included in an auditor's report, which is a written letter from the auditor expressing their view.Usually, the company's annual report is released along with the report of the independent and external audit. The importance of the auditor's report stems from the fact that before making a loan to a firm, banks and creditors want an audit of its financial accounts.A report that is unqualified indicates that there may be problems whereas a report that is clean indicates that the organization followed accounting rules.An unfavorable report implies that the financial statements may have been inconsistent, inaccurate, or out of compliance with GAAP.Learn more about Audit report, here
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nike sells golf clubs, swim wear, as well as footballs. however, nike is best known for its performance in designing and marketing of athletic shoes. this is known as nike's
This is known as Nike's core competency when Nike sells golf clubs, swim wear, as well as footballs. However, Nike is best known for its performance in shoes.
A Core Competency is a deep proficiency that allows a business to provide customers with unique value. It represents a company's collective learning, particularly how to co - ordinate varied production skills and combine various technologies. It is defined as "a coordinated combination of multiple resources and skills that distinguishes a firm in the marketplace" and is thus the foundation of a company's performance.
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an electric switch manufacturing company is trying to decide between three different assembly methods. method a has an estimated first cost of $44,000, an annual operating cost (aoc) of $5,000, and a service life of 2 years. method b will cost $84,000 to buy and will have an aoc of $10,000 over its 4-year service life. method c costs $143,000 initially with an aoc of $5,000 over its 8-year life. methods a and b will have no salvage value, but method c will have equipment worth 10% of its first cost.
The future worth of the cost is lowest for method C, so Method C is most cost efficient. So, method C should be selected.
These methods have unequal life, so LCM method will be used to make their lives equal to be 8 years, by repeating the investment.
R = 10%
For Method A:
Future worth of the cost = (44000×[tex]1.1^8[/tex] + 44000×[tex]1.1^6[/tex] + 44000×1.1^4 + [tex]1.1^4[/tex]44000×1.1²) + 5000×([tex]1.1^8[/tex]-1)/.1
Future worth of the cost = $926890.032 (it will be negative as it is cost)
For Method B:
Future worth of the cost = (84000×[tex]1.1^8[/tex] + 84000×[tex]1.1^4[/tex]) + 10000×([tex]1.1^8[/tex]-1)/.1
Future worth of the cost = $417404.741 (it will be negative as it is cost)
For Method C:
Future worth of the cost = 143000×[tex]1.1^8[/tex] + 5000×([tex]1.1^8[/tex]-1)/.1 - 143000×10%
Future worth of the cost = $43185.
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a regular is a system where you can exchange goods for other goods. you submit your goods and you receive trade credit that you can use to buy other goods
To trade products for other goods is the definition of a typical barter exchange system. A good exchange is one that involves bartering. Previously, when there was no exchange of money, it was done.
A barter exchange is a business that acts as both a bank and a third party, coordinating the value of each member's account and the value of barter transactions amongst the organization's members. Every trade participant of a barter exchange receives a monthly accounting as well as year-end tax reporting of their barter transactions.
The majority of barter exchanges are local or regional, and many of them offer online catalogs of goods and services. Your trade Trade Account is debited when you make purchases from other exchange members, and credited when you make sales to other members.
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The complete question is
Today, a regular _____________ is a system where you can exchange goods for other goods. You submit your goods and you receive trade credit that you can use to buy other goods.
a. world market
b. barter exchange
c. world trade center
d. trading post
machines are good at low-skill, repetitive jobs, and at high-speed, extremely precise jobs. in both cases they work better than humans. this efficiency leads to a more prosperous and progressive world for everyone.
Robotic elements of human nature are replaced by machines, making people more human. Machines are good at low-skill, repetitive activities as well as high-speed, incredibly precise ones.
The end effectors, sensors, and Robotic elements are among the parts of most robots that may be changed by the operator. Batteries will require regular replacement for mobile robots. Robot arm mounts and mounting systems for fastening sensors are crucial robot accessories. It's also possible to swap out the robot's vision system. Of course, there are low-skill numerous additional smaller components as well, such as LED screens and keypads. It is outside the scope of this article to list them all.
You can get prices on robotic parts via HowToRobot. A list of more than 16,000 robotics vendors can be found on HowToRobot. This allows you to get a list of all the products that are low-skill offered. The specific parts that are best for your Robotic elements can be chosen by you. Additionally, you can assess the cost-effectiveness of rival items.
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The complete question is
Machines are good at low-skill, repetitive jobs, and at high-speed, extremely precise jobs. In both cases they work better than humans. This efficiency leads to a more prosperous and progressive world for everyone.
the lojack car recovery system allows the police to track stolen cars. as a result, they not only recover 90 percent of lojack-equipped cars that are stolen but also arrest many auto thieves and shut down many "chop shops" that rip apart stolen vehicles to get their parts. if the government subsidized lojack purchases, it would
Yes, the government should offer consumer subsidies to encourage the purchase of the LoJack car recovery system. Subsidies have an impact on market incentives.
If consumers receive subsidies for acquiring the recovery system, they will be able to increase their usage at the same price as before. To boost consumption, the government can provide a subsidies, encouraging purchases by shifting the demand curve. Subsidies have an impact on market incentives. The new optimal and efficient output level maximizes societal welfare while minimizing efficiency loss.
Here is the complete question-
The LoJack car recovery system allows the police to track stolen cars. As a result, they not only recover 90 percent of LoJack-equipped cars that are stolen but also arrest many auto thieves and shut down many “chop shops” that rip apart stolen vehicles to get their parts. Thus, LoJack provides both private benefits and positive externalities. Should the government consider subsidizing LoJack purchases?
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a tariff is a: limit on the quantity of a good that can be exported. tax on imported products. tax on exported products. limit on the quantity of a good that can be imported.
A tariff is a tax on imported products Option(b) is correct. Tariffs are among the most broadly utilized instruments of protectionism, alongside import and commodity shares.
What is a Tariff?A Tariff is a tax forced by the public authority of a nation or by a supranational association on imports or products of merchandise.
Other than being a wellspring of income for the public authority, import obligations can likewise be a type of guideline of unfamiliar exchange and strategy that taxes unfamiliar items to support or protect homegrown industry.
Tariffs can be fixed (a steady total for each unit of imported products or a level of the cost) or variable (the sum fluctuates as per the cost). Taxing imports implies individuals are less inclined to get them as they become more costly.
Therefore Option(b) is correct.
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the multiplier applied to earnings per share to determine current value of the common stock. multiple choice question. price-earnings ratio liquidity ratio return on capital earnings per share
Price-earnings ratio is the multiplier used to multiply earnings per share in order to calculate the common stock's current worth.
The price-to-earnings ratio evaluates the current share price in relation to the company's earnings per share (EPS). Other names for the price-to-earnings ratio include the price multiple and the earnings multiple.
Investors and analysts use Price-earnings ratio to evaluate a company's shares fairly in an apples-to-apples comparison. A company's performance can also be evaluated against its prior performance, and aggregate markets can common stock's be contrasted with one another or through time.
One of the methods that analysts and investors most frequently use to assess a stock's relative value is the price-to-earnings ratio (P/E). The P/E ratio aids in identifying common stock's an undervalued or expensive stock. The P/E ratio of a firm may also be compared to those of similar companies' equities or to the market as a whole, such as the S&P 500 Index.
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a price ceiling is a government-mandated group of answer choices minimum price below which legal trades cannot be made. maximum price above which legal trades cannot be made. minimum price above which legal trades cannot be made. maximum price below which legal trades cannot be made.
A price ceiling is a government-mandated maximum price above which legal trades cannot be made.
What is price ceiling?A price ceiling is a cap placed on the amount that can be charged for a good, service, or commodity by the government or another organization. The stated purpose of price caps is to shield customers from circumstances that would make items too expensive.
In New York City, for instance, officials establish price caps, or maximum rent rates, on each housing unit based on its maintenance and running costs. Until they reach that ceiling, the landlord may raise rent by 7.5% every two years to meet costs.
A price can't increase above a specific point because to price ceilings. When a price ceiling is set below the equilibrium price, supply will exceed demand, leading to shortages or excess demand. Prices are protected from falling below predetermined levels by price floors.
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a. a public good is multiple choice 1 nonrival but excludable. rival but nonexcludable. rival and excludable. nonrival and nonexcludable. b. public goods are not privately provided because multiple choice 2 when goods are nonexcludable, there is too much competition for firms to earn a profit. when goods are nonrival, there is too much competition for firms to earn a profit. when goods are nonexcludable, those purchasing the good could allow others the use without requiring compensation. when goods are nonrival, those purchasing the good could allow others the use without requiring compensation.
A public good is both non rival and non excludable, because when goods are nonrival, there is too much competition for firms to earn a profit.
What are public good?Public good can be described as the commodity or service which can be access by all the member of the society in general, it can be seen as a those goods that are been provided by the government as a result of the money that is been generated by through the tax that is been collected from the member of the public.
It should be noted that when a good is been considered as nonrival goods then the goods can be seen as a result of the competition in the industry from those firms because they want to make so much profit hence the name non rival goods.
Therefore, option A is correct and option second option is correct.
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this year luke has calculated his gross tax liability at $1,800. luke is entitled to a $2,400 nonrefundable personal tax credit, a $1,500 business tax credit, and a $600 refundable personal tax credit. in addition, luke has had $2,300 of income taxes withheld from his salary. what is luke'
Luke determined that his total tax obligation was $1,800. Luke can claim a $1,500 company tax credit, a $600 refundable personal tax credit. $600.00 is Luke's non-refundable credit (1800-2400).
Tax compliance refers to policy actions and individual behavior aimed at ensuring that taxpayers are paying the right amount of tax at the right time and securing the correct tax allowances and tax reliefs.
A tax is a mandatory financial charge or some other type of levy imposed on a taxpayer by a governmental organization in order to fund government spending and various public expenditures. Around 3000–2800 BC, Ancient Egypt experienced the first recorded taxation.
Laws have been established to penalize late payments as well as tax evasion and resistance. Direct taxes and indirect taxes can be paid in cash or in the work equivalent.
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a(n) business strategy is typically a combination of deliberate and emergent strategy initiatives. (remember to place only one word in the blank.)
A realized business strategy is typically a combination of deliberate and emergent strategy initiatives.
What does the Realised strategy depend on?
The first determinant of realized strategy is emergent strategy—the decisions that occurs from the complex processes in which individual managers delivers the intended strategy and adapt to changing external circumstances.
What are different levels of strategy?The three levels are corporate level strategy, business level strategy, and functional strategy. These different levels of strategy allows business leaders to build business goals from the upper corporate level to the bottom functional level.
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Danny's Pizza has had an increase in operating costs in the last six months. Danny can see
no solution to this problem except raising the prices of all his menu items.
Change:
Internal or External
Increase or Decrease
Answer:
Internal, Increase I think
two months ago, your company wrote off a receivable account for a customer because it was deemed unlikely to be collectible. today, due to a change in circumstances, you learned that this amount will definitely be collected in the near future. what is the entry required to reinstate the customer's balance?
Two months ago, your company wrote off a particular receivable account for a customer because it was deemed unlikely to be collectible. Today, due to a change in circumstances, you learned that this amount will definitely be collected in the near future. The entry required to reinstate the customer's balance are Increase Accounts Receivable, increase Allowance for Doubtful Accounts
What is Accounts Receivable?The money that the business will receive from clients who have used credit to buy its goods and services is known as accounts receivable (AR). The credit period is typically brief, lasting only a few days, a few months, or perhaps even a year.
Accounts payable and accounts receivable are, in essence, two sides of the same coin. Accounts receivables represent the money that customers owe your company, as opposed to Accounts Payables, which represent the money that your company owes to suppliers.
The recording of an accounts receivable transaction in the company's accounting records is known as an accounts receivable journal entry. It is a crucial stage in accurately recording this financial activity. Sales for which money hasn't yet been paid are referred to by the accounting term "accounts receivable."
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