In 2012, colorado and washington became the first states to legalize marijuana for recreational use, and have since been joined by oregon, alaska, and washington, d. c. in 2014, colorado is reported to have received over $50 million in tax revenue from the sale of recreational marijuana, much of which was slated to be used for school construction. the potential for increased tax revenues and the benefits these revenues can provide has a number of other states contemplating the possible legalization of recreational-use marijuana.
a. recall that efficiency means producing what people want people want at theleast cost. can you make an effiency argument in favor of stares allowing the recreational use of marijuana?
b. what nonmonetary costs might be associated with legalizing marijuana use? would these costs have an impact on the eeficiency argument you presented in part a?
c. using the concept of equity, argue for or against the legalization of recreational-use marijuana.
d. what do you think would happen to the flow of tax revenue to state governments if an 50 states legalized marijuana?

Assume that all of thurmond company’s sales are credit sales. it has been the practice of thurmond company to provide for uncollectible accounts expense at the rate of one-half of one percent of net credit sales. for the year 20x1 the company had net credit sales of $2,021,000 and the allowance for doubtful accounts account had a credit balance, before adjustments, of $630 as of december 31, 20x1. during 20x2, the following selected transactions occurred: jan. 20 the account of h. scott, a deceased customer who owed $325, was determined to be uncollectible and was therefore written off. mar. 16 informed that a. nettles, a customer, had been declared bankrupt. his account for $898 was written off. apr. 23 the $906 account of j. kenney & sons was written off as uncollectible. aug. 3 wrote off as uncollectible the $750 account of clarke company. oct. 20 wrote off as uncollectible the $1,130 account of g. michael associates. oct. 27 received a check for $325 from the estate of h. scott. this amount had been written off on january 20 of the current year. dec. 20 cater company paid $7,000 of the $7,500 it owed thurmond company. since cater company was going out of business, the $500 balance it still owed was deemed uncollectible and written off. required: prepare journal entries for the december 31, 20x1, and the seven 20x2 transactions on the work sheets provided at the back of this unit. then answer questions 8 and 9 on the answer sheet. t-accounts are also provided for your use in answering these questions. 8. which one of the following entries should have been made on december 31, 20x1?