Sage Hill Inc. sold $13,600 of its designer tables to Santos Furniture and Design Studios on account. Sage Hill estimates that $1,400 of these sales will either be returned or an allowance will be granted. Prepare the entries when (a) Sage Hill makes the sale (use the gross method), and (b) Sage Hill grants an allowance of $900 when some of the tables do not meet exact specifications but still could be sold by Santos.

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answer; break-even analysis;

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.