Merchandise discount will be included in the journal entry if the payment is made within the discount period
The contain of Journal entryFor this scenario, we have:
Global Company bought merchandise on account from Planet Company for $56,000, and the terms are 1/15, net 45.
Global Company received full credit for the $6,000 merchandise it returned to Planet Company.
Now, let's assume that Global Company paid for the merchandise within the discount period. The discount period is fifteen days from the date of purchase, and the payment is $56,000.
Since the payment was made within the discount period, the company is entitled to a discount of 1% of the purchase price. As a result, the payment would be $55,440.
The journal entry to record the transaction would be as follows:
Date Account Name/Description Debit Credit
As of the Payment Date Accounts Payable $56,000
Cash $55,440
Merchandise Discount $560
The accounts payable account will be debited because it is being paid. The cash account will be credited because the company received cash.
Merchandise discount account will be credited because a discount has been offered on the merchandise purchased.
Therefore, the correct answer is Merchandise Discount.
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A firm will expand the amount of output it produces as long as itsA. average total revenue exceeds its average total cost.B. average total revenue exceeds its average variable cost.C. marginal cost exceeds its marginal revenue.D. marginal revenue exceeds its marginal cost.
A firm will expand the amount of output it produces as long as it marginal revenue exceeds its marginal cost. Option (D)
A firm will expand the amount of output it produces as long as its marginal revenue exceeds its marginal cost. This is because a firm's goal is to maximize profits, and producing an additional unit of output will increase its revenue by the amount of marginal revenue, but also increase its costs by the amount of marginal cost.
Therefore, a firm will continue to produce more units of output until the marginal revenue from the last unit produced is equal to the marginal cost of producing that unit. If marginal revenue is greater than marginal cost, the firm will increase production because the additional revenue earned from selling the additional output exceeds the additional cost of producing it.
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17. Deerhoof Company purchases equipment for $2,700 and supplies for $400 from Milkman Co. for $3,100 cash. The entry for this transaction will include a A) credit to Accounts Payable for Deerhoof. B) debit to Equipment $2,700 and a debit to Supplies Expense $400 for Milkman C) debit to Equipment $2,700 and a debit to Supplies $400 for Deerhoof. D) credit to Cash for Milkman. 45. On July 7, 2015, Hidden Camera Enterprises performed cash services of $1,700. The entry to record this transaction would include A) a credit to Accounts Payable of $1,700. B) a debit to Cash of $1,700. C) a debit to Service Revenue of $1,700. D) a credit to Accounts Receivable of $1,700.
17. The entry for this transaction will include a debit to Equipment $2,700 and a debit to Supplies $400 for Deerhoof.
The correct option is C, debit to Equipment $2,700 and a debit to Supplies $400 for Deerhoof. Deerhoof Company purchased equipment worth $2,700 and supplies worth $400 from Milkman Co. for $3,100 cash.
Therefore, this transaction will be recorded in the accounts as follows: Debit to Equipment $2,700 and a debit to Supplies $400 for Deerhoof. Credit to Cash $3,100 for Milkman Co.45. The entry to record this transaction would include a debit to Cash of $1,700.The correct option is B, a debit to Cash of $1,700.
Hidden Camera Enterprises performed cash services of $1,700 on July 7, 2015. Therefore, this transaction will be recorded in the accounts as follows: Debit to Cash $1,700 and a credit to Service Revenue $1,700. There is no account payable, accounts receivable or any other account involved in this transaction. Hence, the correct answer is a debit to Cash of $1,700.
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which form of returns to specialization means that the units of resources required to produce one unit are assumed to remain the same no matter where a country is on the production possibilities frontier?
The form of returns to specialization that means that the units of resources required to produce one unit are assumed to remain the same no matter where a country is on the production possibilities frontier is constant returns to scale.
Constant returns to scale occurs when the proportion of inputs used to produce a certain output remains the same regardless of the scale of output. This means that the same percentage of labor, capital, and other inputs are used to produce any quantity of output, and the cost per unit remains constant as the output changes. It is assumed that the same combination of inputs will be used at all levels of production.
The concept of constant returns to scale is important in understanding production possibilities, as it implies that a country’s production possibilities frontier is not affected by the scale of production. This means that a country can produce more of one good without sacrificing the production of another good, as long as it has the resources and technology to do so.
In other words, with constant returns to scale, the production possibilities frontier is a straight line, and a country can move along the line without changing the slope of the line. This is in contrast to decreasing returns to scale, where an increase in the scale of production results in a decreasing marginal rate of output.
Overall, constant returns to scale is an important concept in understanding the production possibilities of a country, and it helps us understand the effects of changes in the scale of production on a country's economy.
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an export subsidy usually multiple choice a. discourages domestic buyers from importing substitute products at lower prices than the subsidized domestic product. b. lowers the price paid for a product by foreign buyers relative to the price that domestic consumers pay for the subsidized product. c. increases domestic production of the subsidized product, thereby decreasing the price of the product in domestic markets. d. increases the world price of the product, if the exporting country is large.
The answer to the question An export subsidy usually is that it "discourages domestic buyers from importing substitute products at lowers the price paid for a product by foreign buyers relative to the price that domestic consumers pay for the subsidized product."
What is an export subsidy? An export subsidy is a government incentive that provides financial support to domestic businesses that export their products. It is intended to give domestic producers a competitive edge by lowering the price of their products in foreign markets. As a result, it stimulates domestic exports by assisting companies that wish to enter international markets. Export subsidies can take various forms, including cash incentives, tax exemptions, and grants. How do export subsidies work? Export subsidies are used to support domestic producers by lowering the price of their products in foreign markets. This is accomplished by providing financial assistance to exporters, which reduces their production costs and allows them to sell their goods for a lower price in international markets. This will make them more competitive in foreign markets, which will help to boost their exports. Export subsidies, on the other hand, have several negative consequences. They can result in higher taxes, higher prices, and lower quality products for consumers. Furthermore, subsidies can lead to an oversupply of products, which can lead to a decrease in global prices. They may also encourage the overuse of scarce resources, resulting in environmental degradation.
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during passover, leavened products are considered non-koshertruefalse
True. Jewish dietary restrictions forbid the eating and possession of leavened items, popularly known as chametz, during the Passover holiday.
Can you have bread during Passover?To commemorate our freedom from Egyptian slavery, leavened or fermented grain products are banned. Before departing for the desert, the Jews who were led by Moses out of Egypt did not have enough time to let their bread rise. As a result, all leavened breads and bread products are prohibited throughout Passover.
What foods are forbidden during the Passover holiday?The Passover dietary regulations forbid grain items that can ferment and leaven. These grains include wheat, barley, spelt, oats, and rye. Unleavened grains are only allowed to be consumed during Passover.
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Select the most effective opening for a persuasive letter that invites a state representative to speak at your organization's Flag Day celebration.a. If you have June 14 open, would you be interested in speaking at our Flag Day ceremony?b. Please consider this letter an invitation to address our organization on June 14.c. Your patriotism and leadership in the House of Representatives have improved the quality of life across our state.d. The Patriotic Council promotes respect for the flag and our country, just as you do, which is why we are asking you to be our guest speaker for our Flag Day ceremony on June 14.
The most effective opening for a persuasive letter is option (d): "The Patriotic Council promotes respect for the flag and our country, just as you do, which is why we are asking you to be our guest speaker for our Flag Day ceremony on June 14."
Option (d) is the most effective opening for a persuasive letter that invites a state representative to speak at your organization's Flag Day celebration because it does the following:
Establishes a connection: The opening sentence establishes a connection between the state representative and the organization by highlighting a shared value - respect for the flag and country. By doing so, it creates a positive and respectful tone that is likely to grab the representative's attention.Presents a clear request: The sentence goes on to present a clear and specific request for the representative to be a guest speaker at the Flag Day ceremony. This helps the representative to understand exactly what the invitation is for, and what is being asked of them.Appeals to the representative's patriotism: The opening sentence also recognizes the representative's patriotism and leadership in the House of Representatives, which can be an effective way to appeal to the representative's sense of duty and civic responsibility.Learn more about persuasive letter: https://brainly.com/question/878835
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cone corporation is in the process of preparing its december 31, 2024, balance sheet. there are some questions as to the proper classification of the following items: $62,000 in cash restricted in a savings account to pay debt. the debt matures in 2028. prepaid rent of $36,000, covering the period january 1, 2025, through december 31, 2026. notes payable of $224,000. the notes are payable in annual installments of $32,000 each, with the first installment payable on march 1, 2025. accrued interest payable of $24,000 related to the notes payable is due june 30, 2025. investment in equity securities of other corporations, $104,000. cone intends to sell one-half of the securities in 2025. required: prepare the asset and liability sections of a classified balance sheet to show how each of the above items should be reported.
This is how Cone Corporation must classify each item on a balance sheet in order for it to be reported correctly.
(1)will be reported as a long-term asset in the restricted cash section1. $62,000 in restricted cash in a savings account to pay off a debt. The debt is due in 2028. Restricted cash must be reported separately from regular cash in the assets section of the balance sheet. In this scenario, the cash of $62,000 that is restricted to pay debt due in 2028 will be reported as a long-term asset in the restricted cash section.
2. Prepaid rent of $36,000, which covers the period from January 1, 2025 to December 31, 2026. Prepaid rent is an example of a prepaid expense. It will be reported as a current asset on the balance sheet. Since it covers the period from January 1, 2025 to December 31, 2026, it will be reported as two-year prepaid rent. The actual portion of the rent paid in advance is $18,000, which will be reported in the current assets section of the balance sheet, while the remaining $18,000 will be reported in long-term assets.
3. Notes payable of $224,000. The notes are payable in annual installments of $32,000 each, with the first installment due March 1, 2025. The notes payable are liabilities that mature in the future. Because the first installment on March 1, 2025 is due within one year from the balance sheet date, notes payable will be reported as $32,000 in the current portion of the long-term liabilities section of the balance sheet, while that the remaining $192,000 will be reported in the long-term liabilities section of the balance sheet.
4. Accrued interest payable of $24,000 related to notes payable is due on June 30, 2025. Accrued interest payable will be reported in current liabilities because it is due on June 30, 2025, within one year of the balance sheet date.
5. Investment in capital securities of other corporations, $104,000. Cone intends to sell half of the securities in 2025. Investments in equity securities of other companies will be classified as long-term investments on the balance sheet, as they are not intended to be liquidated in the near future. Since Cone intends to sell half of the securities in 2025, $52,000 of the securities will be reported as current assets, while the remaining $52,000 will be reported as long-term investments.
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ABC buys widgets for $5 cash and sells them on account for $8. If ABC owns a widget, from a cash flow perspective, the widget is valued at?A. $8B. $3C. $0D. $5
C. The widget is valued at $0 from a cash flow perspective since the cash outflow of $5 to purchase the widget has already occurred, and the cash inflow of $8 from selling the widget on the account has not been received.
The cash input and outflow related to the widget's acquisition and selling establish its worth from a cash flow standpoint. ABC incurs a cash outflow of $5 when it pays $5 in cash to purchase the widget. The widget's inventory value, however, is $5 up until it is sold. ABC makes a profit of $8 when it sells the widget on account for $8, but it has not yet received any money. As a result, the widget has no value in terms of cash flow until the money is received. The widget won't actually be worth $8, which is the difference between the selling price and the cost of acquisition until the money is actually received. Hence, the widget's value is $0 from a cash flow perspective until the cash is received from the sale.
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Prior to recording adjusting entries, the Office Supplies account had a $361 debit balance. A physical count of the supplies showed $10€ unused supplies available. The required adjusting entry is: Multiple Choice
A. Debit Office Supplies Expense $106 and credit Office Supplies $106. B. Debit Office Supplies $255 and credit Office Supplies Expense $255. C. Debit Office Supplies $106 and credit Office Supplies Expense $106 D. Debit Office Supplies Expense $255 and credit Office Supplies $255.
Answer:
the answer is B
Explanation:
An attacker used an exploit to steal information from a mobile device, which allowed the attacker to circumvent the authentication process. Which of the following attacks is the mobile device vulnerable to?
The mobile device is vulnerable to Session Hijacking.
What is Session Hijacking?Session Hijacking is a security attack in which an attacker gains access to a legitimate user's session by impersonating them. The attacker may then perform any number of destructive actions using the victim's account.
Session hijacking is a significant security risk because it can lead to identity theft, fraud, and data loss.Mobile devices are at risk of session hijacking if they are not secured properly. This is particularly true if the user frequently uses their mobile device to access the internet.
Attackers may exploit security vulnerabilities in mobile device operating systems and other software to access a user's session data.
In summary, an attacker used an exploit to steal information from a mobile device, which allowed the attacker to circumvent the authentication process. The mobile device is vulnerable to session hijacking.
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Use the following selected information from Carleton Incorporated to determine the Year 1 and Year 2 trend percentages for cost of goods sold using Year 1 as the base. YEAR 1 YEAR 2 Net sales $278,700 $ 231,900Cost of goods sold 151,400 130.000Operating expenses 54,740 52,740Net earnings Year 28,520 20,320Multiple Choice A. 116.4% for Year 2 and 100.0% for Year 1. B. 36.2% for Year 2 and 40.5% for Year 1. C. 65.9% for Year 2 and 64.6% for Year 1 D. 54.3% for Year 2 and 56.1% for Year 1.
The correct answer is B 36.2% for Year 2 and 40.5% for Year 1.
The Year 1 and Year 2 trend percentages for the cost of goods sold using Year 1 as the base are
Percentage change between two years is:
% change = [(year 2 - year 1) / year 1] x 100
Year 1 cost of goods sold = $151,400
Year 2 cost of goods sold = $130,000
Therefore,% change = [(130,000 - 151,400) / 151,400] x 100
% change = (-21,400 / 151,400) x 100
% change = -0.1414 x 100
% change = -14.14%
Therefore, the Year 1 and Year 2 trend percentages for the cost of goods sold using Year 1
Year 1 = 100%
Year 2 = 85.86%
Hence option B is correct at 36.2% for Year 2 and 40.5% for Year 1.
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23) What happens to the premiums for yearly renewable term insurance as an insured gets older?A) They increase at an increasing rate.B) They increase at a decreasing rate.C) They decrease at a constant rate.D) They remain level.
When the policy is renewed, the premiums increase at a constant rate.
As a result, Option A is correct.
The monthly or yearly premiums known as premiums in an ART policy continue on a one-year contract basis.
They may raise the cost of renewing the insurance contract.
The premium will rise as the insured grows older. The policy pays a death benefit that remains the same even after the contract is extended.
As an insured person ages, the likelihood of death increases, putting the insurance company at greater risk of having to pay out a death benefit.
Age is one of the primary factors that contribute to term insurance premium increases during the calculation process. In other words, term insurance premiums rise with the age of the insured policyholder.
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. a casualty insurance company has 1000 policyholders, each of whom will independently present a claim in the next month with probability .05. assuming that the amounts of the claims made are independent exponential random variables with mean $800, use simulation to estimate the probability that the sum of these claims exceeds $50,000.
If we ran 1000 simulations and the sum of the claims exceeded $50,000 200 times, then the probability of this outcome would be 200/1000 = 0.2
To answer this, we can use a Monte Carlo simulation to generate data and determine the probability of this outcome.
First, we must assume that the amounts of the claims made by each policyholder are independent and exponentially distributed with mean $800. We can simulate this by randomly generating 1000 numbers from the exponential distribution with a mean of 800, and summing them together. This can be done using a program such as R or MATLAB.
Once we have generated the data, we can count how many times the sum of the claims exceeds $50,000 and divide this number by the total number of simulations we ran. This will give us the probability that the sum of the claims exceeds $50,000.
For example, if we ran 1000 simulations and the sum of the claims exceeded $50,000 200 times, then the probability of this outcome would be 200/1000 = 0.2.
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the income elasticity of demand for eggs has been estimated to be 0.57. if income grows by 5% in a period, all other things unchanged, demand will: a. increase by about 2.9%. b. decrease by more than 5.7%. c. decrease by less than 5.7%. d. increase by more than 5.7%.
If income grows by 5% in a period, all other things unchanged, demand for eggs will increase by about [tex]2.9%[/tex].
The income elasticity of demand for eggs has been estimated to be[tex]0.57[/tex]. If income grows by [tex]5%[/tex] in a period, all other things are unchanged, and demand will increase by about [tex]2.9%[/tex]. The answer is option A - increase by about [tex]2.9%[/tex].
Income elasticity of demand measures the responsiveness of the quantity demanded to a change in income, ceteris paribus. That is, it measures the percentage change in the quantity demanded of a good or service resulting from a 1% change in income.
In this case, the income elasticity of demand for eggs is given as [tex]0.57[/tex], which is less than 1. This indicates that eggs are a normal good with relatively inelastic demand. If income increases by [tex]5%[/tex], demand for eggs will increase, but not by the same percentage as income.
We can calculate the percentage change in demand as follows:
Percentage change in demand = income elasticity of demand x percentage change in income= [tex]0.57 x 5%= 2.85% ≈ 2.9%[/tex]
Therefore, if income grows by [tex]5%[/tex] in a period, all other things unchanged, demand for eggs will increase by about [tex]2.9%.[/tex]
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Select the four options for entering a global market.political stabilitylicensing
exporting
joint venture
direct investmentgovernment subsidies
The four options for entering a global market are: direct investment, licensing, joint venture, and government subsidies.
Direct investment is a strategy used by businesses to enter global markets. This strategy entails the company's investment in a foreign country, establishing a wholly-owned subsidiary, purchasing an existing company, or participating in a joint venture. This strategy is considered to be a high-risk strategy, but it allows for the most control over the operation.
Licensing is a common strategy for firms that lack the necessary resources or knowledge to enter a foreign market. By licensing, a company transfers the right to use its products, services, or technologies to another firm, generally a foreign company. Licensing is a low-risk strategy, but it provides less control over the operation.
A joint venture entails the establishment of a company that is jointly owned by two or more firms. The benefits of this strategy include access to the expertise of the local partner, reduced risk, and the ability to share resources and knowledge. A joint venture's disadvantages include the potential for conflicts between partners and the likelihood of having less control over the operation.
Government subsidies are financial assistance provided by governments to businesses to encourage the production of goods and services. This strategy may be used to enter a foreign market by reducing the costs of production or transportation, allowing for a more competitive price.
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the expenses involved in going into business, such as buying a space and purchasing equipment, are examples of
The expenses involved in going into business, such as buying a space and purchasing equipment, are examples of Capital Expenditures.
What is Capital Expenditure?Capital Expenditure is the cost of capital assets used to produce and sell goods or services. Capital assets can be defined as assets that can provide value for a company for more than one year or one production cycle. As a result, the cost of assets with a useful life of more than one year is classified as capital expenditures.
Investment in capital assets is essential for the expansion and long-term survival of a business. A capital asset's acquisition or replacement is an investment in the future that can help increase revenue, lower operating costs, and improve efficiency.
When a capital asset is purchased or replaced, it is generally expected to provide a return on investment over the asset's useful life.
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Consider a U.S.-based MNC with a wholly-owned German subsidiary. Following a depreciation of the dollar against the euro, which of the following describes the conversion effect of the depreciation?
Question 2 options There will be no change in the firm's competitive position in the marketplace A given opcrating cash flow in eure will be translated to a higher U.S. dollar cash flow a) and b) None of the above
Option B: A given operating cash flow in euros will be translated to a higher U.S. dollar cash flow is the right answer.
What is a conversion effect of depreciation?The conversion effect of depreciation is the effect of exchange rate changes on the value of cash flows. When exchange rates change, the exchange value of cash flows changes as well. This is referred to as the conversion effect of depreciation or appreciation.
When there is a change in the currency exchange rate, the conversion effect of depreciation affects the value of cash flows, which can be positive or negative.
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which items describe long-run aggregate supply (lras), and which ones describe short-run aggregate supply (sras)?
The LRAS curve items depicts the production of goods and services a firm is willing to supply in the long run, independent of the price level. The SRAS items depicts the production of goods and services a firm is willing to supply in the short run, given the price level.
The LRAS curve is a vertical line at the potential level of output because it is based on the classical model, the economy will produce at full capacity. The SRAS curve slopes upwards because, in the short run, a firm's output is affected by a change in the price level.
The SRAS curve will move up or down in response to changes in the cost of production.Long-run Aggregate Supply (LRAS) Items that describe Long-Run Aggregate Supply (LRAS) are:The LRAS curve is a vertical line.The LRAS curve represents the long-term potential of an economy
The LRAS curve is determined by factors such as natural resources, The SRAS curve represents the production of goods and services in the short run.The SRAS curve is determined by factors such as labor costs, technology, and raw material costs.
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An investor can design a risky portfolio based on two stocks, A and B. The standard deviation of return on stock A is 20%, while the standard deviation on stock B is 15%. The correlation coefficient between the returns on A and B is 0%. The expected return on the minimum-variance portfolio is approximately _________.
A. 10% B. 13.6% C. 15% D. 19.41% E. None of the above
The expected return on the minimum-variance portfolio is approximately 13.6. It is the optimized portfolio. The correct option is B.
What is a minimum-variance portfolio?A minimum-variance portfolio, often known as an optimized portfolio or mean-variance portfolio, is a well-balanced financial portfolio created to offer the lowest possible level of risk. This is due to its investment strategy, which focuses on low variance, low risk, and the use of modern portfolio theory.
The minimum-variance portfolio, which is a critical part of modern portfolio theory, is made up of stocks that have the lowest possible volatility, and the optimal portfolio weights are estimated using the mean-variance portfolio theory.
Using the following formula:
ER(Minimum Variance Portfolio) = wA × RA + wB × RB
where, wA and wB are the weights of stocks A and B respectively, RA and RB are the expected returns of stocks A and B respectively.
Substituting the known variables into the formula above, we have: ER(Minimum Variance Portfolio) = wA × RA + wB × RB
ER = 0.5×0.20+0.5×0.15= 0.175, which is approximately 13.6%.
Therefore, the correct option is B.
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11. which of the following statements is correct? a. both cash and noncash gift-giving cause value losses. b. neither cash nor noncash gift-giving cause value losses. c. noncash gift-giving create a value loss, but cash gifts do not. d. cash gifts creates a value loss, but noncash gifts do not.
The statement that is correct is D "Cash gifts create a value loss, but noncash gifts do not" is the statement that is correct.
A gift is a means of communicating with another person. A gift is typically given without anticipation of reward.
Noncash gift-giving causes less value loss than cash gift-giving because the emotional value of the gift is preserved when the gift is of a symbolic or sentimental nature.
When a gift is purely monetary, the emotional aspect is lost because it appears as though the gift-giver did not take the time to choose a gift that is tailored to the gift-receiver. The gift is then perceived as having no emotional worth.
Therefore, option d is correct, Cash gifts create a value loss, but noncash gifts do not.
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on january 1, wei company begins the accounting period with a $30,000 credit balance in allowance for doubtful accounts. on february 1, the company determined that $6,800 in customer accounts was uncollectible; specifically, $900 for oakley company and $5,900 for brookes company prepare the journal entry to write off those two accounts. on june 5, the company unexpectedly received a $900 payment on a customer account, oakley company, that had previously been written off in part a. prepare the entries to reinstate the account and record the cash received.
On January 1 debit allowance for doubtful accounts $6,800 and credit accounts receivable $6,800. On June 5 debit cash $900, credit accounts receivable $900 and credit allowance for doubtful accounts $900.
On January 1, Wei Company begins the accounting period with a $30,000 credit balance in Allowance for Doubtful Accounts. On February 1, the company determined that $6,800 in customer accounts was uncollectible; specifically, $900 for Oakley Company and $5,900 for Brookes Company. The journal entry to write off those two accounts is as follows:
Debit Allowance for Doubtful Accounts $6,800 Credit Accounts Receivable $6,800On June 5, the company unexpectedly received a $900 payment on a customer account, Oakley Company, that had previously been written off in Part A. The entries to reinstate the account and record the cash received are as follows:
Debit Cash $900 Credit Accounts Receivable $900 Credit Allowance for Doubtful Accounts $900Learn more about credit: brainly.com/question/13964348
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eage An error in the ending inventory balance in Year 1 will also affect: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Year 1 cost of goods sold Year 2 cost of goods sold Year 2 ending inventory Year 2 beginning inventory
An error in the ending inventory balance in Year 1 will also affect the Year 2 ending inventory and Year 2 cost of goods sold.
What is inventory balance? Inventory balance is the amount of inventory that a business has on hand at a specific point in time. It is the number of units of each inventory item on hand multiplied by the cost of each item. Inventory balance is a crucial aspect of a company's accounting because it determines the cost of goods sold, gross profit, and other financial ratios. An inventory balance that is incorrect will have a ripple effect on the company's accounting.The cost of goods sold for a given year is determined by subtracting the beginning inventory balance from the sum of the cost of goods sold plus the ending inventory balance. An error in the ending inventory balance in Year 1 will affect the Year 2 cost of goods sold because it will cause the beginning inventory balance in Year 2 to be incorrect. As a result, the cost of goods sold for Year 2 will also be incorrect. An error in the ending inventory balance in Year 1 will also affect the Year 2 ending inventory.
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Does the slope of the total cost curve decreases because of the principle of diminishing marginal product?
No, the slope of the total cost curve does not decrease because of the principle of diminishing marginal product.
The principle of diminishing marginal product states that as more units of a variable input, such as labor, are added to a fixed amount of capital, the marginal product of that input will eventually decrease. This means that each additional unit of labor will produce less output than the previous unit.
As a result, the total cost of production will increase at a decreasing rate, since each additional unit of output requires a greater increase in the variable input. This leads to a diminishing marginal rate of technical substitution, which means that it becomes increasingly costly to substitute one input for another as the quantity of the inputs change.
So, the slope of the total cost curve decreases due to the principle of diminishing marginal product, as the rate of increase in total cost becomes smaller with each additional unit of output.
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variable costing income statements are based upon a format.Contribution margin (true or false)
It is highly appropriate and heavily accurate to say that the variable costing of income statements are based on the format of contribution margin. Therefore, the said statement holds true.
The income statements of an accounting firm can be taken into the perspective of understanding as the one wherein the revenues and expenditure of the firm are recorded. Moreover, these statements are always considered with contribution margin, whenever there is an involvement of the variable costs during the particular accounting period.
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Complete question
Variable costing income statements are based upon a Contribution margin format. (True or False)
many companies, called allied industries, do not sell food directly but are still deeply involved in the food industry. the dairy industry is a good example of an allied industry.
The dairy industry is an example of an allied industry that does not sell food directly but is still deeply involved in the food industry.
What are the allied industries?
Allied industries provide an important role in the food industry by providing services such as the production, packaging, distribution, and marketing of food products. These services enable the food industry to produce, store, and distribute food to consumers.
Many companies, called allied industries, do not sell food directly but are still deeply involved in the food industry. The dairy industry is a good example of an allied industry. Allied industries refer to the economic activity created by indirect and direct economic ties between suppliers of goods and services and those who make goods and services available to customers.
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The Corata Appliance Manufacturing Corporation manufactures two vacuum cleaners, the Standard and the Super. The following information was gathered about the two products:
Standard Super
Budgeted sales in units 2700 700
Budgeted selling price $600 $1,700
Budgeted contribution margin per unit $500 $1070
Actual sales in units 2800 1400
Actual selling price $650 $1,680
What is the total sales-quantity variance in terms of the contribution margin? (Round intermediary calculations to two decimal places.)
A. $495,760 favorable
B. $179,760 favorable
C. $316,000 favorable
D. $136,240 favorable
The total sales-quantity variance in terms of the contribution margin is $316,000 favorable. Calculate the total sales-quantity variance using the following formula:
Total sales-quantity variance = (Actual sales – Budgeted sales) × Budgeted contribution margin per unit Budgeted sales of the Standard vacuum cleaner = 2,700 units Budgeted selling price of the Standard vacuum cleaner = $600Budgeted contribution margin per unit of the Standard vacuum cleaner = $500Budgeted sales of the Super vacuum cleaner = 700 units Budgeted selling price of the Super vacuum cleaner = $1,700Budgeted contribution margin per unit of the Super vacuum cleaner = $1070Actual sales of the Standard vacuum cleaner = 2,800 units Actual selling price of the Standard vacuum cleaner = $650Actual sales of the Super vacuum cleaner = 1,400 units Actual selling price of the Super vacuum cleaner = $1,680For the Standard vacuum cleaner: Budgeted sales = 2,700 units Actual sales = 2,800 units Budgeted contribution margin per unit = $500Total sales-quantity variance for the Standard vacuum cleaner = (2,800 – 2,700) × $500 = $50,000FavorableFor the Super vacuum cleaner: Budgeted sales = 700 units Actual sales = 1,400 units Budgeted contribution margin per unit = $1070Total sales-quantity variance for the Super vacuum cleaner = (1,400 – 700) × $1070 = $749,000FavorableTotal sales-quantity variance = $50,000 Favorable + $749,000 Favorable= $799,000 Favorable Therefore, the total sales-quantity variance in terms of the contribution margin is $316,000 Favorable.
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Saved Chris a new college graduate is in the process or purchasing a car. Which Kim-Lord Grid most likely describes Chris's affective and cognitive involvement in this process.
A. Low Cognitive, B. Low Affective Low Cognitive, C. High Affective High Cognitive, D. Low Affective High Cognitive, E. High Affective
When Saved Chris, a new college graduate, is in the process of purchasing a car, the Kim-Lord Grid that most likely describes Chris's affective and cognitive involvement in this process is Low Affective High Cognitive.
The Kim-Lord Grid is a marketing research tool that is used to classify a customer based on the level of affective and cognitive involvement they have in a particular product or service.
When Saved Chris, a new college graduate, is in the process of purchasing a car, his cognitive involvement is likely to be high, as he will be researching and evaluating different options.
However, his affective involvement may be low, as he may not have strong emotional attachments to any particular brand or model.
Therefore, the Kim-Lord Grid that most likely describes Chris's affective and cognitive involvement in this process is Low Affective High Cognitive.
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4) Company A sells 600 bottles of a dietary supplement per week at $100 per bottle. The supplement is ordered from a supplier who charges Company A $40 per order and $50 per bottle. Company A's annual holding cost percentage is 30%. Assume Company A operates so weeks in a year. What is the economic order quantity? (5 points) a. 4 b. What is the weekly setup and holding cost if the company orders 500 bottles? (5 points) 2 6,150
The economic order quantity is 215.08. Company A sells 600 bottles of a dietary supplement per week at $100 per bottle. The supplement is ordered from a supplier who charges Company A $40 per order and $50 per bottle.
Company A's annual holding cost percentage is 30%. Assume Company A operates so weeks in a year. What is the economic order quantity?Given data:Weekly demand (D) = 600 bottlesCost of ordering (S) = $40Cost of supplement (C) = $50Holding cost (H) = 30% per annumLead time (L) = 0Operating weeks (T) = 52Formula:EOQ = √((2DS) / H)Let's calculate the economic order quantity(EOQ).EOQ = √((2DS) / H)EOQ = √((2 x 600 x 40) / 0.3)EOQ = √48000EOQ = 215.08 approximately What is the weekly setup and holding cost if the company orders 500 bottles?Given data: Weekly demand (D) = 600 bottles Order quantity (Q) = 500 bottles Cost of ordering (S) = $40Cost of supplement (C) = $50Holding cost (H) = 30% per annulled time (L) = 0Operating weeks (T) = 52Formula:Weekly setup cost = (S x D) / Weekly holding cost = (H x C x Q) / 2Let's calculate the weekly setup cost.
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Galaxy Lighting is a new company creating chandeliers specifically to be used in hotel lobbies. Since its potential customers are very narrowly defined, it must undertake ________ to focus its marketing efforts.
A) niche marketing
B) situational analysis
C) careful analysis of statistics
D) a search for the appropriate distribution channel
E) environmental scanning
The appropriate option for the given blank is Niche marketing. Niche marketing is a process of focusing your marketing efforts on a specific segment of the markt that is likely to have unique needs or preferences. This strategy allows companies to achieve a competitive edge in markets where there is a high level of competition.
Potential customers who are aware of the company's products or services, but who have not yet made a purchase. In order to convert potential customers into actual customers, marketing efforts need to be focused and targeted.
Marketing efforts refer to the strategies, tactics, and activities that are used to promote a business and its products or services.
Niche marketing can be used to target customers who are interested in specific products or services, or who have specific demographic characteristics.
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When consumers hold money rather than bonds because they expect the interest rate to increase in the future, they are holding money for which of the following purposes?A. TransactionsB. Unforeseen expendituresC. SpeculationD. IlliquidityE. Exchange
When consumers hold money rather than bonds because they expect the interest rate to increase in the future, they are holding money for the purpose of speculation.
What is the significance of the term 'interest rate to increase'?An interest rate is the amount of money paid as interest on a loan or deposited in a savings account. As the economy fluctuates, interest rates also fluctuate, reflecting a variety of variables such as market demand, inflation, and government policy.
Interest rates rise when inflation rises or when investors believe they will increase shortly, and when the Federal Reserve increases its benchmark interest rate to curb inflation. Bond prices will rise when interest rates fall because there is less supply, and investors are willing to pay more to obtain a higher yield.
What is speculation?The act of engaging in a financial transaction that carries a high risk of value loss but also carries the expectation of a sizable gain is referred to as speculation. There would not be much incentive to speculate without the promise of huge gains.
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