Exhibit 11-2 Ag Expenditure
1000
JOH+G+OX-M)
500
500
Real GDP
1000
38. Refer to the graph in the exhibit. Consider an economy characterized by the aggregate expenditure line. Suppose net
taxes are independent of the level of real GDP. What is the tax multiplier?
A.0
b. 1
0.2
d. 3

At the end of the current year, accounts receivable has a balance of $550,000; allowance for doubtful accounts has a credit balance of $5,500; and sales for the year total $2,500,000. an analysis of receivables estimates uncollectible receivables as $25,000. determine the net realizable value of accounts receivable after adjustment. (hint: determine the amount of the adjusting entry for bad debt expense and the adjusted balance of allowance of doubtful accounts.)