The Business Analyst for Ace Business Machines,Inc

question 6

Multiple Choice

The business analyst for Ace Business Machines,Inc.wants to forecast this year's demand for manual typewriters based on the following historical data:
Time Period :Demand
5 years ago :900
4 years ago : 700
3 years ago : 600
2 years ago :500
Last year :300
-What is the forecast for this year using the last-value forecasting method?

• A)49
• B)50
• C)52
• D)65
• E)78

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Definitions:

Net Credit Sales

The total revenue from sales made on credit minus any returns or allowances, reflecting the actual credit sales generated and collected by a business.

Uncollectible

Refers to debts that have been deemed uncollectible from debtors, often written off as a loss by the business.

Income Statement Approach

A method for preparing the bad debt expense by estimating the amount of accounts receivable that will not be collected and adjusting the allowance for doubtful accounts accordingly.

Bad Debts Expense

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