Some Sales Managers Are Talking Shop

question 34

Multiple Choice

Some sales managers are talking shop.Which one of the following quotations refers to a leftward shift of the demand curve?

• A)"Since our competitors raised their prices,our sales have doubled."
• B)"It has been an unusually mild winter;our sales of wool scarves are down from last year."
• C)"We decided to cut our prices,and the increase in our sales has been remarkable."
• D)"The Green movement has sparked an increase in our sales of biodegradable products."
• E)"More firms are producing biodegradable products."

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Definitions:

Uncollectible

Accounts receivable that are considered unlikely to be recovered and may be written off as a bad debt expense.

Adjusting Entry

An accounting journal entry made at the end of an accounting period to allocate income and expenditures to the appropriate period.

Bad Debt Expense

The cost associated with accounts receivable that a company does not expect to collect due to customer default.

Allowance For Doubtful Accounts

The contra asset account for accounts receivable.