During the current year, sun electronics, incorporated, recorded credit sales of $5,000,000. based on prior experience, it estimates a 2 percent bad debt rate on credit sales. a. on november 13 of the current year, an account receivable for $98,000 from a prior year was determined to be uncollectible and was written off. b. at year-end, the appropriate bad debt expense adjustment was recorded for the current year. required: show the effects of the above transactions on the following categories: assets, liabilities, and stockholders' equity. indicate the accounts affected and enter decreases to account categories with a minus sign.

Brian has just finished college. he wants to set up a small business to make and sell fireworks. he registers his company and acquires a license from the government. he finds that most of his competitors are selling fireworks at an extremely low price. he would like to make more money, so he decides to innovate and develop better fireworks. he sells his fireworks at a higher price, and they are a huge hit with the customers. after a few years, he earns enough profit to set up a bigger fireworks factory that complies with the government’s health and safety regulations. he even starts exporting fireworks overseas. which type of economy does this scenario describe?