Cambridge Co. uses the allowance method. During January 2019, Cambridge writes off a $640 customer account balance when it becomes clear that the customer will never pay. The entry to record the write-off will:

A. not affect expenses in 2019.
B. decrease total assets by $640.
C. decrease net income in 2019 by $640.
D. decrease net accounts receivable by $640.

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?