Other sets by this creator
Use the following news clip to work Problems 9 and 10. Venezuelans organize to overcome food shortages The government of Venezuela controls the price of food and there are shortages of milk, rice, coffee, pasta, sugar, corn flour, and cooking oil. Eggs have disappeared from store shelves. While people stand in line for milk, cheese and yogurt are abundant. People who buy milk at the low price either sell it for a profit or exchange it for food items that other families stand in line to buy. Source: www.teleSURtv.net/english, November 27, 2015
Are Venezuela’s price controls price floors or price ceilings? Draw a graph to illustrate the shortages of food created by the price controls.
At the end of the current year, Accounts Receivable has a balance of $2,500,000; Allowance for Doubtful Accounts has a debit balance of$9,000; and net sales for the year total $32,000,000. Bad debt expense is estimated at 1/4 of 1% of net sales.
Determine (a) the amount of the adjusting entry for uncollectible accounts; (b) the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense; and (c) the net realizable value of accounts receivable.