Warner Company's year-end unadjusted trial balance shows accounts receivable of \( \$ 111,000 \), allowance for doubtful accounts of \( \$ 720 \) (credit), and sales of \( \$ 400,000 \). Uncollectibles are estimated to be \( 1.50 \% \) of accounts receivable. 1. Prepare the December 31 year-end adjusting entry for uncollectibles. 2. What amount would have been used in the year-end adjusting entry if the allowance account had a year-end

When the Consumer Price Index decreases from 140 to 125 less money is needed to buy the same amount of goods, so the value of money falls. more money is needed to buy the same amount of goods, so the value of money falls. less money is needed to buy the same amount of goods, so the value of money rises. more money is needed to buy the same amount of goods, so the value of money rises.

If there is inflation, then a firm that has kept its price fixed for some time will have a high relative price. Relative-price variability rises as the inflation rate rises. low relative price. Relative-price variability falls as the inflation rate rises. low relative price. Relative-price variability rises as the inflation rate rises. high relative price. Relative-price variability falls as the inflation rate rises.

If the reserve requirement is 7 percent, a bank desires to hold no excess reserves, and it receives a new deposit of \( \$ 200 \), it will be able to use this deposit to make new loans amounting to \( \$ 200 \). must increase required reserves by \( \$ 28 \). will initially see reserves decrease by \( \$ 200 \). must increase required reserves by \( \$ 14 \).

If the public decides to hold more currency and fewer deposits in banks, bank reserves decrease but the money supply does not change. decrease and the money supply eventually decreases. increase and the money supply eventually increases. increase but the money supply does not change.

If the price level increased from 130 to 150 , then what was the inflation rate? 1.2 percent 0.9 percent 20.0 percent 15.4 percent