Public Good. Suppose there are two goods X and Y in the economy where X is a public good and Y is a private good. Let X + Y = 100 denote the Production Possibility Frontier (PPF). There are two individuals A and B with utility functions uA(X, YA) = XYA and uB(X, YB) = XYB. Note that X does not have a subscript because it is a public good and the two individuals have to consume the same amount. Y is a private good so Y = YA + YB. (a) Suppose A is to achieve a utility of ¯uA. Find the amount of YB available to individual B as a function of different values of X. (b) Find the amount of X and YB that will maximize individual B’s utility. This could depend on ¯uA. Find individual A’s consumption of YA as well. (c) What is the condition for Pareto efficient allocation in such a case? Is the answer you find in part (b) Pareto efficient.

Colorado rocky cookie company offers credit terms to its customers. at the end of 2018, accounts receivable totaled $715,000. the allowance method is used to account for uncollectible accounts. the allowance for uncollectible accounts had a credit balance of $50,000 at the beginning of 2018 and $30,000 in receivables were written off during the year as uncollectible. also, $3,000 in cash was received in december from a customer whose account previously had been written off. the company estimates bad debts by applying a percentage of 15% to accounts receivable at the end of the year. 1. prepare journal entries to record the write-off of receivables, the collection of $3,000 for previously written off receivables, and the year-end adjusting entry for bad debt expense.2. how would accounts receivable be shown in the 2018 year-end balance sheet?