Carter company sells on credit with terms of n/30. for the $500,000 of accounts at the end of the year that are not overdue, there is a 90% probability of collection. for the $200,000 of accounts that are less than a month past due, carter estimates the likelihood of collection going down to 70%. the probability of collecting the $100,000 of accounts more than a month past due is estimated to be 25%. required: 1. prepare an aging schedule to estimate the amount of uncollectible accounts. 2. on the basis of the schedule in part (1), prepare the journal entry at the end of the year to esti- mate bad debts. assume that the credit balance in allowance for doubtful accounts is $20,000.

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8. agreement and disagreement among economists suppose that bob, an economist from a university in arizona, and cho, an economist from a public television program, are arguing over saving incentives. the following dialogue shows an excerpt from their debate: cho: i think it's safe to say that, in general, the savings rate of households in today's economy is much lower than it really needs to be to sustain an improvement in living standards. bob: i think a switch from the income tax to a consumption tax would bring growth in living standards. cho: you really think households would change their saving behavior enough in response to this to make a difference? because i don't. the disagreement between these economists is most likely due to . despite their differences, with which proposition are two economists chosen at random most likely to agree? rent ceilings reduce the quantity and quality of available housing. immigrants receive more in government benefits than they contribute in taxes. having a single income tax rate would improve economic performance.

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