For Each of the Following Scenarios,determine the Effects (If Any)of

question 117

Essay

For each of the following scenarios,determine the effects (if any)of the accounting change (correction of error,change in accounting policy,or change in estimate)on the relevant asset or liability,equity,and comprehensive income in the year of change and the prior year.Use the following table for your response.

A.Company A increases the allowance for doubtful accounts (ADA).Using the old estimate,ADA would have been $71,000.The new estimate is $74,000.
B.Company B omitted to record an invoice for a $7,000 sale made on credit at the end of the previous year and incorrectly recorded the sale in the current year.The related inventory sold has been accounted for.
C.Company C changes its revenue recognition policy to a more conservative one.The result is a decrease in prior year revenue of $4,200 and a decrease in current-year revenue of $6,300 relative to the amounts under the old policy.

Comprehend the use of confidence intervals in hypothesis testing.

Recognize the shift from mass marketing to target marketing in addressing market demands.

Understand the role of health and diet consciousness in market segmentation for healthy foods.

Apply confidence intervals to estimate population means and proportions.

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Definitions:

Minimum Efficient Scale

The smallest level of production at which a firm can achieve the lowest long-run average total cost.

Economic Costs

The total cost of choosing one action over another, comprising both the costs directly incurred and the opportunity costs forgone by not taking the alternative action.

Total Revenue

The total amount of money received by a company from its sales of goods or services before any expenses are subtracted.

Assistant's Salary

The compensation paid to an assistant, which typically includes wages or salaries for clerical, support, or administrative roles.