Carrboro has three equal-sized groups of people: (1) type A people consistently prefer more police protection to less; (2) type B people prefer high levels of police protection to low levels and they prefer low levels to medium levels; (3) type C people prefer medium levels to low levels, which they in turn prefer by a modest amount to high levels. (a) Which types of people have single-peaked preferences? Which have multi-peaked preferences? (b) Will majority voting generate consistent outcomes in this case? Why or why not? Solution (a) Which types of people have single-peaked preferences? Which have multi-peaked preferences? Type A and Type C people have single peak. Type A people only prefer high level, so, high level but single peak is achieved. Type C people have preference of medium / moderate level to high or low level so; again there will be one peak of modest/ medium level. Type B people have multiple peaks. a peak of high as well as low level . (b) Will majority voting generate consistent outcomes in this case? Why or why not? Majority voting in this case will give consistent outcomes in this case because people will identify their post preferred choice and accordingly they will vote. For example, if high level and medium level are the only choice then A &B will vote for High level and high level will win. If high, medium and low level is the option then A & B will again vote for high level and high level will win. So, it will be consistent with the result..

1. Casilda Company uses the aging approach to estimate bad debt expense. The balance of each
account receivable is aged on the basis of three time periods as follows: (1) not yet due, $51,500,
(2) up to 180 days past due, $14,200, and (3) more than 180 days past due, $4,100. Experience
has shown that for each age group, the average loss rate on the amount of the receivables at year-
end due to uncollectability is (1) 2 percent, (2) 11 percent, and (3) 31 percent, respectively. At
December 31, 2013 (end of the current year), the Allowance for Doubtful Accounts balance is
$500 (credit) before the end-of-period adjusting entry is made.what is bad debt expense?what is
the allowance for dobtful accounts?
Solution
The average loss calculated in all three cases are;
In case more than 180 days past due, $1271 will be consider as bad debts. Thus $1271is bad
debts.
Total amount in all three cases is $3863. Thus amount of Allowance for doubtful allowance will
be calculated as follows;
Amount of Bad Debts......................................................$1271
Add: Allowance for doubtful debts...............................$3863
Less: Existing Allowance for doubtful debts..............$500
Thus Now amount of Allowance for doubtful debts will be (1271 +3863 - 500) = $4663.