Suppose a Jar of DeLux Popcorn That Is Ultimately Sold

question 32

Multiple Choice

Suppose a jar of DeLux popcorn that is ultimately sold to a customer at Friendly Groceries is produced by the following production process:  
$$\begin{array} { | l | c | r | } \hline { \text { Name of Campany } } & \text { Revenues } & \text { Cast af Pur chased Inguts } \\\hline \text { Citrus Growers Irc. } & \$ 0.75 & \mathbf { 0 } \\\hline \text { Florida Jarn Cormparty } & \$ 2.00 & \$ 0.75 \\\hline \text { The Comer Store } & \$ 2.50 & \$ 2.00 \\\hline\end{array}$$ If the corn was grown and the jar of popcorn produced in the year 2017, but the jar was sold at Friendly Groceries in the year 2018, what is the contribution of these transactions to GDP in the year 2018?

• A)$0.00
• B)$0.50
• C)$1.50
• D)$4.00

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Definitions:

Net Sales

The total revenue from sales transactions after deducting returns, allowances for damaged or missing goods, and any discounts offered.

Allowance Method

An accounting technique used to estimate and account for bad debts, where a portion of receivable accounts is deemed uncollectable.

Bad Debt Recovery

Occurs when a previously written-off debt is recovered either partially or fully after receiving payment from a debtor.

Allowance Method

An accounting technique used to account for bad debts by estimating uncollectable accounts at the end of each period.