When one person seeks to satisfy his or her own interests regardless of the impact on the other parties to the conflict, that pe

Response:

1. Create all necessary journal entries concerning uncollectible accounts and bad debt expense.

1

Dr Bad debt expense_______ 3320

Cr Allowance for bad debt_________________ 3320

2

Dr Allowance for bad debt__ 430

Cr Account Receivable_____________________ 430

2. Provide the year-end balance sheet display for accounts receivable.

Accounts receivable__________47570

Net accounts receivable_______44250

Clarification:

Credit transactions 166000

Credit transactions 118000

Bad debt losses are 2%

Written off 430

Allowance 3320

1

Dr Bad debt expense_______ 3320

Cr Allowance for bad debt_________________ 3320

2

Dr Allowance for bad debt__ 430

Cr Account Receivable_____________________ 430

Year-end balance___________48000

Cr Account Receivable_________430

Accounts receivable__________47570

Allowance for bad debts_______3320

Net accounts receivable_______44250

Answer: This chart indicates that the marginal cost initially declines as the level of production rises.

Marginal cost is the expense incurred for producing an additional unit of a product. When production levels increase, marginal costs tend to fall at first.

In the short run, inputs like capital remain constant while labor becomes the variable factor changing with the number of units produced. Initially, increasing labor enhances productivity, lowering marginal costs. However, as even more labor is added, its productivity diminishes, triggering the law of diminishing marginal returns, which results in a rising marginal cost curve.

Answer:

The variable cost per unit sold amounts to $11.50

Explanation:

The computation for the variable cost per unit sold is provided below:

= Direct materials per unit + Direct labor per unit + Variable manufacturing overhead per unit + Sales commissions per unit +  Variable administrative expenses per unit

= $4.85 + $3.35 + $1.35 + $1.50 + $0.45

= $11.50

Simply put, we summed up the respective per unit costs attributable to variable expenses per unit