Answer: Probably television.
Explanation: TV ads have visuals, music, words, and action.
1. TV Market (Make sure to include a graph and an analysis (causation) as well as the assumptions you are making to support your answer for each question.) (40 points)
A. As the Super Bowl approaches and people want a bigger TV to watch the game, what happens to the price and quantity of TVs? (10 Points)
B. As consumers expect the new better HD TV to come out, what happens to price and quantity of the current TV model? (10 Points)
C. As the Price of Samsung increases, what happens to the price and quantity of Sony TVs? (10 Points)
D. As parts coming from North Korea cost more money, what happens to the price and quantity of TVs? (10 Points)
Answer:
Sorry ............ have no idea
A company has two departments, Y and Z that incur delivery expenses. An analysis of the total delivery expense of $16,000 indicates that Dept. Y had a direct expense of $1,700 for deliveries and Dept. Z had no direct expense. The indirect expenses are $14,300. The analysis also indicates that 50% of regular delivery requests originate in Dept. Y and 50% originate in Dept. Z. Departmental delivery expenses for Dept. Y and Dept. Z, respectively, are:
Answer:
$8,850;$7,150
Explanation:
Calculation for Departmental delivery expenses for Dept. Y
Using this formula
Departmental delivery expenses Dept. Y= Direct expense + Indirect expense × given percentage
Let plug in the formula
Departmental delivery expenses Dept. Y= $1,700 + $14,300 × 50%
Departmental delivery expenses Dept. Y= $1,700 + $7,150
Departmental delivery expenses Dept. Y= $8,850
Calculation for Departmental delivery expenses for Dept. Z,
Using this formula
Departmental delivery expenses for Dept. Z= Indirect expense × given percentage
Departmental delivery expenses for Dept. Z= $14,300 × 50%
Departmental delivery expenses for Dept. Z= $7,150
Therefore The Departmental delivery expenses for Dept. Y and Dept. Z, respectively, are:$8,850;$7,150
Consider relative purchasing power parity (PPP) and remember the consumer price index (CPI) provides the price level in a country at any point in time. Assume CPI in the US is 165 in 2010 and 200 in 2015, and CPI in Canada is 170 in 2010 and 220 in 2015 (with base year as 2000). If the spot exchange rate was 0.7640 USD/CAD in 2010, what is it in 2015 if relative PPP holds
Answer:
0.7156 USD/CAD
Explanation:
Relationship between relative PPP and inflation rates can be expressed as given below:
S(1)/S(0) = (1+I(y)) / (1+I(x))................(1)
==> S(0) = spot exchange rate at the beginning of the time period
==> S(1) = spot exchange rate at the end of the time period
==> I(y) = expected inflation rate for country y, which is foreign country
==> I(x) = expected inflation rate for country x, which is domestic country.
Here, assumes that the US is a foreign country and Canada is domestic country
I(y) = (200/165) - 1 = 21.21%
I(x) = (220/170) - 1 = 29.41%
On putting the values of I(x) and I(y) in the first equation, we get:
S(1)/0.764 = (1+0.2121) / (1+0.2941)
S(1)/0.764 = 0.9366354996
S(1) = 0.764*0.936635
S(1) = 0.7156 USD/CAD
If relative PPP holds, the spot exchange rate in 2015 will be 0.7156 USD/CAD
a term used when the products are sold directly to their end consumers or user without third-party retailers wholesalers or other middle men
Alfa Co. produces a product that has a variable cost of $3.00 per unit. The company's fixed costs are $30,000. The product is sold for $5.00 per unit and the company desires to earn a target profit of $20,000. What is the amount of sales that will be necessary to earn the desired profit
Answer:
Break-even point in units= 25,000
Break-even point (dollars)= $125,000
Explanation:
To calculate the number of units to be sold and the sales dollars required, we will use the break-even point analysis. The following formulas are required:
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= (30,000 + 20,000) / (5 - 3)
Break-even point in units= 25,000
Break-even point (dollars)= (fixed costs + desired profit) / contribution margin ratio
Break-even point (dollars)= 50,000 / (2/5)
Break-even point (dollars)= $125,000
The amount of sales that will be necessary to earn the desired profit is $125,000.
Desired profitContribution margin ratio:
Contribution margin ratio=5-3/5
Contribution margin ratio=2/5
Contribution margin ratio=0.4
Desired profit= (Fixed costs + Target profit) / Contribution margin ratio
Desired profit=(30,000 + 20,000) / 0.4
Desired profit=50,000/0.5
Desired profit=$125,000
Inconclusion the amount of sales that will be necessary to earn the desired profit is $125,000.
Learn more about desired profit here:https://brainly.com/question/26085685
1. Spratt Company purchased Treasury bond futures contracts when the quoted price was 93-50. When this position was closed out, the quoted price was 94-75. Determine the profit or loss per contract, ignoring transaction costs.
Answer:
–$12,500
Explanation:
Calculation to determine Determine the profit or loss per contract
Using this formula
Profit or loss per contract=Purchase price-Selling price
Let plug in the formula
Profit or loss per contract= $935,000 – $947,500
Profit or loss per contract= –$12,500
Therefore the profit or loss per contract will be –$12,500
Tru-Shine is a cleaning company in the United States that offers various cleaning products and services. After gaining popularity in the United States, th company decided to expand its business in other North American nations. The company entered into an agreement with some local cleaning companies in Canada where the local companies would sell its products and services under the same trade name. Tru-Shine also agreed to provide the training and necessary equipments and supplies to the local companies. In this example, the strategy used by Tru-Shine for entering foreign markets is an example of
a. direct investment
b. value engineering
c. franchising
d. sole sourcing
Answer:
C. Franchising
Explanation:
Franchising can be defined as a way of distributing goods and services that involves a franchisee starting a business by using someone else's 8deas and their expertise legally. To be a franchisee you have to buy this right by paying an initial fee
In this question tru shine is the franchisor because this other company wants to sell their products and services using tru shines name.
which quote best represents a person performing a cost-benefit analysis
1. This year, GHJ Inc. received the following dividends: BP Inc. (a taxable California corporation in which GHJ holds a 2% stock interest) $6,000 MN Inc. (a taxable Florida corporation in which GHJ holds a 52% stock interest) 7,000 AB Inc. (a taxable Canadian corporation in which GHJ holds a 21% stock interest) 10,000 $23,000 a) Compute GHJ Inc.’s dividend-received deduction
Answer:
Total dividends-received deduction = $17,550
Explanation:
These can be computed as follows:
Dividend-received deduction on BP dividend = Dividend received from BP * 50% = $6000 * 50% = $3,000
Dividend-received deduction on MN dividend = Dividend received from MN * 65% = 7,000 * 65% = $4,550
Dividend-received deduction on AB dividend = Dividend received from AB * 65% = 10,000 * 100% = $10,000
Total dividends-received deduction = Dividend-received deduction on BP dividend + Dividend-received deduction on MN dividend + Dividend-received deduction on AB dividend = $3,000 + $4,550 + $10,000 = $17,550
This credit account carries a temporary low introductory rate (teaser rate) of_________%. This teaser APR applies to purchases made within the first________months that the account is open. After this introductory period, the APR for purchases reverts to a higher variable APR. This regular APR for purchases is calculated by__________% to the U.S. prime rate (assumed to be 4% in the disclosure). Therefore, if the U.S. prime rate remains at 4%, then the regular APR for purchases is______%
Answer:
Introductory rate is 1.99%
After first 6 months.
APR for purchase is 8.99%
Regular APR for purchases is 12.99%
Explanation:
This is required by law in U.S. for the credit card rates. The APR introductory rate for the purchases is 1.99%. This rate is then adjusted with the U.S. prime rate and it becomes 8.99% after first 6 months. The rate is then adjusted with the further 4% U.S. prime rate. The regular APR for the purchases is 12.99%.
discuss the negative impact of the socio-economic issues identified in QUESTION 1.5lack of skill on business.
Answer:
A lack of skill in business may have many negative socio-economic impacts, both at the societal level, and at the individual level.
Explanation:
At the societal level, this lack of business skills may produce a society in which entrepreneurship is low, which causes the private sector have poor dynamic, and economic growth to be sluggish. This can create an array of negative socio-economic issues from unemployment, to poverty, to income inequality.
At the individual level, lack of business skills represents a handicap for individuals who would like to become business owners, but are thus unable to do so effectively. Their business may fail very quickly, leaving individuals in debt, or they may simply not start businesses at all, and be employees all their lives.
A portfolio consists of three stocks. There are 540 shares of Stock A valued at $24.20 share, 310 shares of Stock B valued at $48.10 a share, and 200 shares of Stock C priced at $26.50 a share. Stocks A, B, and C are expected to return 8.3 percent, 16.4 percent, and 11.7 percent, respectively. What is the expected return on this portfolio
Answer: 12.47%
Explanation:
The value of each stock will be gotten by their unit multiplied by the price.
Value of Stock A = 540 × 24 2 = 13068
Value of stock B = 310 × 48.1 = 14911
Value of stock C = 200 × 26.5 = 5300
Total value of stock = 33279
Weight of stock A = 13068 / 33279 = 0.393
Weight of stock B = 14911 / 33279 = 0.448
Weight of stock C = 5300 / 33279 = 0.159
The expected return on this portfolio will then be:
= (0.393 × 8.3) + (0.448 × 16.4) + (0.159 × 11.7)
= 12.47%
The Krisp Kracker company which makes unique kettle chips for restaurants, clubs, and events, has just lost a large client that made up 55% of its total revenue. Management finds it necessary to reduce staff or wages. This comes only three months after hiring 35 new people to support this big client. While there are rumors of wage reductions in the short run, the 100 employees who have been with the company for the past two years are grumbling that they are more valuable that the new hires which should be let go and the wages not reduced. The situation at Krisp Kracker illustrates which wage stickiness theory best
Answer:
The Krisp Kracker Company
The situation at Krisp Kracker illustrates the Insider-Outsider Wage Stickiness theory best.
Explanation:
This theory suggests that the 100 employees are the insiders while the 35 newly employed are outsiders. Therefore, at negotiations between the employer and the employees, the 100 employees would also like to negotiate employment terms to the exclusion of the outsiders because they feel that they enjoy a juicier and more privileged position.
Your employer contributes $75 a week to your retirement plan. Assume that you work for your employer for another 20 years and that the applicable discount rate is 7.5 percent. Given these assumptions, what is this employee benefit worth to you today
Answer:
This employee benefit is worth $40,384.69 today.
Explanation:
a) Data and Calculations:
Employer contributions per week = $75
Period of work for the employer = 20 years (20 * 52 = 1,040)
Applicable discount rate is 7.5%
PV = $40,384.69
Sum of all periodic contributions = $78,000.00 ($75*20*52)
Total Interest = $37,615.31
b) The worth of the employee benefit equals the present value of all the contributions by the employer and the accompanying interest, compounded weekly at 7.5% per annum for a period of 20 years.
The Solomon, Smith, and Samson law firm produces many legal documents that must be word processed for clients and the firm. Requests average pages of documents per hour, and they arrive according to a Poisson distribution. The secretary can word process pages per hour on average according to an exponential distribution.
a. The average utilization rate of the secretary is _________% utilization.
b. The probability that more than four pages are waiting or being word processed is _____. (Enter your response rounded to three decimalplaces.)
c. The average number of pages waiting to be word processed is ____pages. (Enter your response rounded to two decimal places.)
Answer:
Arrival rate λ= 19 pages per hour
Service rate μ = 20 pages per hour
a. Average utilization rate P = λ/μ
Average utilization rate P = 19/20
Average utilization rate P = 0.95
Average utilization rate P = 95%
b. Probability that more than four pages are waiting or being word processed Pn>4 = 1 - (P0 + P1 + P2 + P3 + P4)
Pn>4 = 1 - (0.05*(1+0.95 + 0.95^2 + 0.95^3 + 0.95^4))
Pn>4 = 1 - (0.05*4.524)
Pn>4 = 1 - 0.2262
Pn>4 = 0.774.
c. Average number of pages waiting to be word processed Lq
Lq = λ²/μ(μ-λ)
Lq = 19²/20(20-19)
Lq = 361/20
Lq = 18.05
Suppose stocks offer an expected rate of returns of 10% with a standard deviation of 20%, and gold offers an expected return of 5% with a standard deviation of 25%. (i) If the correlation between gold and stocks is sufficiently low, gold ______ be held as a component in the optimal portfolio. (ii) If the correlation coefficient between gold and stocks is 1.0, then gold ______ be held as a component in the optimal portfolio.
Answer: A) (i) will; (ii) will not
Explanation:
The optimal portfolio should be one where the assets are diversified such that returns can be made regardless of the direction the economy is going. For this to happen, asset classes need to have a low correlation with one another.
If the correlation between gold and stocks is low therefore, gold should and will be held as a component in the portfolio. If the correlation between gold and stocks is 1.0 - this means that they are perfectly correlated and move together - gold should not be in the optimal portfolio as it would be too risky.
An important application of _________ interest involves _________. Some common types of amortized loans are automobile loans, home mortgage loans, and business loans. Each loan payment consists of interest and repayment of principal. This breakdown is often developed in an __________. Interest is _____________ in the first period and ___________ over the life of the loan, while the principal repayment is _________ in the first period and it _________ thereafter.
Answer:
Compound interest; amortized loans; amortization schedule; largest; decline; smallest; increases.
Explanation:
An important application of compound interest involves amortized loans. Some common types of amortized loans are automobile loans, home mortgage loans, and business loans. Each loan payment consists of interest and repayment of principal. This breakdown is often developed in an amortization schedule. Interest is largest in the first period and declines over the life of the loan, while the principal repayment is smallest in the first period and it increases thereafter.
Amortization in accounting is used to periodically lower the book value of a loan principal or an intangible asset such as intellectual property over a set period of time.
The compound interest formula is given below;
[tex] A = P(1 + \frac{r}{n})^{nt}[/tex]
Where;
A is the future value.
P is the principal or starting amount.
r is annual interest rate.
n is the number of times the interest is compounded in a year.
t is the number of years for the compound interest.
Which of the following is/are true?
a. Downward sloping yield curves are inconsistent with the expectations theory.
b. The actual shape of the yield curve depends only on expectations about future inflation.
c. If the pure expectations theory is correct, a downward sloping yield curve indicates that interest rates are expected to decline in the future.
d. If the yield curve is upward sloping, the maturity risk premium must be positive and the inflation rate must be zero.
e. Yield curves must be either upward or downward sloping they cannot first rise and then decline
Answer:
If the pure expectations theory is correct, a downward-sloping yield curve indicates that interest rates are expected to decline in the future.
Explanation:
The three theories based on term structure of interest rates includes:
1. Pure Expectation Theory
2. Liquidity Premium Theory
3.Segmented Markets Theory
In Pure Expectations Theory, the term structure shown in the shape of the yield curve is gotten solely by the expectations of interest rates.
According to pure expectations theory, the yield curve has an Upward sloping, if there is an expected increase in rates and expected decrease in rates leads to a downward sloping.
On January 2, 2020, Swifty Corporation wishes to issue $5100000 (par value) of its 7%, 10 year bonds. The bonds pay interest annually on January 1. The current yield rate on such bonds is 10N Using the interest factors below.compute the amount that Swifty will realize from the sale (issuance of the bands Present value of lat 756 for 10 periods 0.5083 Present value of 1 at 1096 for 10 periods Present value of an ordinary annuity at for 10 periods 70236 Present value of an ordinary annuity at 10 for 10 periods 6.1446 a. $5100031 b. $5640733 c. $4159672 d. $5100000
Answer:
c. $4159672
Explanation:
Computation to determine the amount that Swifty will realize from the sale
First step is to calculate the annual interest payment
Annual interest payment=$5,100,000 × .07
Annual interest payment=$357,000
Now let calculate the amount that Swifty will realize from the sale
Sales realized amount=($347,000 × 6.1446) + ($5,100,000 × 0.3855)
Sales realized amount=$2,193,622+ $1,966,050
Sales realized amount =$4,159,672
Therefore the amount that Swifty will realize from the sale will be $4,159,672
yo wt.f is daisy
.
.
.
.
.
.
.
.
.
Daisy me rollinngg
Answer:
cool
Explanation:
Daisy must be either awesome or coll
A call option on MassComputer Corp. is trading with a strike price of $100 and an expiration date on November 18th at 4 pm in the afternoon. The premium paid on the call is $5.05. What is the net profit or loss from buying the call just prior to 4 pm on November 18 if at this time the stock price per share of MassComputer is: a.$102.32 Answer:The net profit is $ -2.73 b.$97.62 Answer:The net profit is $ -7.43
Answer and Explanation:
The computation is shown below:
In the case when the stock price is $102.32
So, the net profit is
= $102.32 - $100 - $5.05
= -$2.73
In the case when the stock price is $97.62 is
= $97.62 - $100 - $5.05
= -$7.43
Hence, the same would be considered and relevant too
Danner Company expects to have a cash balance of $51,300 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows. Collections from customers: January $96,900, February $171,000. Payments for direct materials: January $57,000, February $85,500. Direct labor: January $34,200, February $51,300. Wages are paid in the month they are incurred. Manufacturing overhead: January $23,940, February $28,500. These costs include depreciation of $1,710 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $17,100, February $22,800. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $13,680 in cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $28,500. The company wants to maintain a minimum monthly cash balance of $22,800. Prepare a cash budget for January and February.
Answer:
Danner Company
Danner Company
Cash Budget
January February
Beginning Balance $51,300 $31,350
Collections from customers: 96,900 171,000
Sale of marketable securities 13,680
Total cash receipts $161,880 $202,350
Payments:
Direct materials: $57,000 $85,500
Direct labor: 34,200 51,300
Manufacturing overhead: 22,230 26,790
Selling & Administrative: 17,100 22,800
Total payments $130,530 $186,390
Cash Balance $31,350 $15,960
Minimum cash balance 22,800 22,800
Excess cash (deficit) $8,550 ($6,840)
Explanation:
a) Data and Calculations:
Expected Cash balance on January 1, 2020 = $51,300
Collections from customers:
January $96,900
February $171,000
Payments for direct materials:
January $57,000
February $85,500
Direct labor:
January $34,200
February $51,300
Manufacturing overhead:
January $23,940 - depreciation of $1,710 Net $22,230
February $28,500 - depreciation of $1,710 Net $26,790
Selling and administrative expenses:
January $17,100
February $22,800
Sales of Marketable securities in January = $13,680
Line of credit = $28,500
Expected monthly minimum cash balance = $22,800
The labor movement was blamed for the death of seven police officers during __________. A. the Haymarket Riot B. the Triangle Shirtwaist Factory fire C. violence resulting from public anger with business leaders during the Depression D. violent outbursts in the 1950s resulting from public outrage about union corruption
Answer:
I pretty sure it is
A. the Haymarket Riot
Explanation:
i had it in my notes and i spilled my tea all over them and i remember seeing it. if i am wrong, i am so sorry
Answer: The answer is A
Explanation:
The following is the ending balances of accounts at June 30, 2021, for Excell Company.
Account Title Debits Credits
Cash $ 87,000
Short-term investments 69,000
Accounts receivable (net) 284,000
Prepaid expenses (for the next 12 months) 36,000
Land 79,000
Buildings 324,000
Accumulated depreciation—buildings $ 162,000
Equipment 267,000
Accumulated depreciation—equipment 122,000
Accounts payable 175,000
Accrued liabilities 47,000
Notes payable 104,000
Mortgage payable 230,000
Common stock 120,000
Retained earnings 186,000
Totals $ 1,146,000 $ 1,146,000
Additional information:
The short-term investments account includes $20,000 in U.S. treasury bills purchased in May. The bills mature in July, 2021.
The accounts receivable account consists of the following:
a. Amounts owed by customers $ 227,000
b. Allowance for uncollectible accounts—trade customers (16,000 )
c. Nontrade notes receivable (due in three years) 67,000
d. Interest receivable on notes (due in four months) 6,000
Total $ 284,000
The notes payable account consists of two notes of $52,000 each. One note is due on September 30, 2021, and the other is due on November 30, 2022.
The mortgage payable is a loan payable to the bank in semiannual installments of $4,600 each plus interest. The next payment is due on October 31, 2021. Interest has been properly accrued and is included in accrued expenses.
Nine hundred thousand shares of no par common stock are authorized, of which 240,000 shares have been issued and are outstanding.
The land account includes $52,000 representing the cost of the land on which the company's office building resides. The remaining $27,000 is the cost of land that the company is holding for investment purposes.
Required:
Prepare a classified balance sheet for the Excell Company at June 30, 2021. (Amounts to be deducted should be indicated by a minus sign.)
Answer:
See below
Explanation:
Classified Balance sheet for excel company as at June 30, 2021.
Cash
$87,000
Short term investment
$69,000
*Accounts receivables
$217,000
Prepaid expenses
$36,000
Total current
$409,000
Non current asset
Land
$79,000
Equipment(net)
($267,000 - $122,000)
$145,000
Buildings(net)
($234,000 - $162,000)
$72,000
Total non current asset
$296,000
Total assets $409,000 + $296,000 = $705,000
Liabilities
Accounts payable
$175,000
Accrued liabilities
$47,000
Notes payable
$52,000
Mortgage payable
$55,200
Total liabilities
$329,200
Longterm liabilities
*** Notes payable
$52,000
*** Mortgage
$174,800
Total longterm
$226,800
Total liabilities $329,200 + $226,800 = $556,000
Equity
Common stock
$120,000
Retained earnings
$186,000
Total equity
$306,000
Total liabilities and equities $556,000 + $306,000 = $862,000
Calculation for *AR
$284,000 - $67,000 non current = $217,000
** note payable of $104,000 less $52,000
Current mortgage of $4,600 × 12(Interest will be accrued over time)
The non current will be the difference
$230,000 - $55,200 = $174,800
ABC estimates uncollectible accounts based on the percentage of accounts receivable. What effect will recording the estimate of uncollectible accounts have on the accounting equation
Answer: Decrease assets and decrease stockholders' equity
Explanation:
If ABC estimates the uncollectible accounts based on the percentage of accounts receivable, the effect that the recording of the estimate of the uncollectible accounts will have on the accounting equation is that there will be a decrease in assets and there'll also be a decrease in the stockholders' equity.
We should note that the accounts uncollectible simply refers to the loans, receivables or other forms of debt that there's no chance of it being paid. Therefore, when they are estimated based on the percentage of accounts receivable, there'll be a reduction in both the assets and the stockholders equity.
When considering the results of an Altman Z-Score analysis a score of 3.85 would suggest? A. The company is in financial distress and there is a high probability of bankruptcy in the short term future B. The company is exposed to some risk of bankruptcy C. The company is healthy and there is a low bankruptcy potential in the short-term D. The company is healthy and there is a low bankruptcy potential in both the short and long-term
Answer: C. The company is healthy and there is a low bankruptcy potential in the short-term.
Explanation:
The Altman Z-score can be used in the prediction of bankruptcy. It should be noted that when the Altman Z-score is close to 1.8, it simply means that the company is heading for bankruptcy, and when the z score is closer to 3, it simply means that the company is doing week and is in a solid financial positioning
Since the z score is 3.85, it means that the company is healthy and there is a low bankruptcy potential in the short-term.
Wildhorse Park, a public camping ground near the Four Corners National Recreation Area, has compiled the following financial information as of December 31, 2022.
Revenues during 2022—camping fees $187,600
Notes payable $80,400
Revenues during 2022—general store 62,980
Expenses during 2022 201,000
Accounts payable 14,740
Supplies on hand 3,350
Cash on hand 26,800
Common stock 26,800
Original cost of equipment 141,370
Retained earnings
Fair value of equipment 187,600
(a) Determine Wyco Park's net income for 2015.
Wyco Park's net income$_________
Answer:
$49,580
Explanation:
Calculation to Determine Wyco Park's net income
Using this formula
Net income=Revenus-Expenses
Let plug in the formula
Revenues during 2022—camping fees $187,600
Revenues during 2022—general store $62,980
Less Expenses during 2022 ($201,000)
Net income $49,580
($187,600+$62,980-$201,000)
Therefore Wyco Park's net income will be $49,580
On December 28, 20Y3, Silverman Enterprises sold $19,500 of merchandise to Beasley Co. with terms 2/10, n/30. The cost of the goods sold was $10,600. On December 31, 20Y3, Silverman prepared its adjusting entries, yearly financial statements, and closing entries. On January 3, 20Y4, Silverman Enterprises issued Beasley Co. a credit memo for returned merchandise. The invoice amount of the returned merchandise was $4,500 and the merchandise originally cost Silverman Enterprises $2,200.
a. Journalize the entries by Silverman Enterprises to record the December 28, 20Y3, sale. If an amount box does not require an entry, leave it blank.
b. Journalize the entries by Silverman Enterprises to record the merchandise returned by Beasley Co. on January 3, 20Y4. If an amount box does not require an entry, leave it blank.
c. Journalize the entry to record the receipt of the amount due by Beasley Co. on January 7, 20Y4. If an amount box does not require an entry, leave it blank.
Answer:
Date Account Title Debit Credit
Dec 28 Accounts Receivable $19,110
Sales $19,110
Cost of Goods sold $10,600
Inventory $10,600
Working:
= 19,500 * ( 1 - 2%)
= $19,110
Date Account Title Debit Credit
Jan 3 Customer refunds payable $4,410
Accounts Receivable $4,410
Inventory $2,200
Estimated return inventory $2,200
Working:
Sales were with 2% discount:
= 4,500 * ( 1 - 2%)
= $4,410
Date Account Title Debit Credit
Jan 7 Cash $15,000
Accounts receivable $14,700
Sales $290
Payment was made after discount period of 10 days so full amount must be paid.
Cash = 19,500 - 4,500 = $15,000
Accounts receivable = 19,110 - 4,410 = $14,700
by Product Category Quantity Per Unit Cost Net Realizable Value Tools: Hammers 100 $ 4.80 $ 5.30 Saws 180 9.80 8.80 Screwdrivers 280 1.80 2.40 Paint products: 1-gallon cans 480 5.80 4.80 Paint brushes 100 3.80 4.30 Required: 1. Determine the carrying value of inventory at year-end, assuming the lower of cost or net realizable value (LCNRV) rule is applied to (a) individual products, (b) product categories, and (c) total inventory. 2. Assuming inventory write-downs are common for Almaden, record any necessary year-end adjustment amount for each of the LCNRV applications in requirement 1.
Answer:
Almaden
1. The carrying value of inventory at year-end, assuming the lower of cost or market (LCM) rule is applied to:
(a) individual products = $5,252
(b) product categories = $5,520
(c) total inventory = $5,521
2. Adjusting Journal Entries:
a) by individual products:
Debit Cost of goods sold $1,640
Credit Inventory $1,640
To record the inventory write-down.
b) by category:
Debit Cost of goods sold $1,372
Credit Inventory $1,372
To record the inventory write-down.
c) by total inventory:
Debit Cost of goods sold $1,371
Credit Inventory $1,371
To record the inventory write-down.
Explanation:
a) Data and Calculations:
Inventory,
by Product Category Quantity Per Unit Cost Market LCM
Tools:
Hammers 100 $4.80 $5.30 $480 ($4.80*100)
Saws 180 9.80 8.80 $1,584 ($8.80*180)
Screwdrivers 280 1.80 2.40 $504 ($1.80*280)
Paint products:
1-gallon cans 480 5.80 4.80 $2,304 ($4.80*480)
Paint brushes 100 3.80 4.30 $380 ($3.80*100)
Total value of inventory (by individual products) = $5,252
by Category:
Tools:
at Cost (100 * $4.80 + 180 * $9.80 + 280 * $1.80) = $3,728
at Market value (100 * $5.30 + 180 * $8.80 + 280 * $2.40) = $2,786
Paint products:
at Cost (480 * $5.80 + 100 * $3.80) = $3,164
at Market value (480 * $4.80 + 100 * $4.30) = $2,734
Total inventory value = $5,520 ($2,786 + $2,734)
by total inventory:
Tools: at cost (100 * $4.80 + 180 * $9.80 + 280 * $1.80) = $3,728
Paint products: at cost (480 * $5.80 + 100 * $3.80) = $3,164
Total = $6,892 ($3,728 + $3,164)
Paint products: at Market value (100 * $5.30 + 180 * $8.80 + 280 * $2.40) = $2,786
Paint products: at Market value ((480 * $4.80 + 100 * $4.30) = $2,734
Total inventory value = $5,521 ($2,786 + $2,735)
Market value is selected since the total is less than the total cost.
The cost of inventory = $6,892
LCM by individual products = $5,252
Write-down = $1,640
The cost of inventory = $6,892
LCM by category = $5,520
Write-down = $1,372
The cost of inventory = $6,892
LCM by total inventory = $5,521
Write-down = $1,371
On December 31, Jarden Co.'s Allowance for Doubtful Accounts has an unadjusted credit balance of $16,500. Jarden prepares a schedule of its December 31 accounts receivable by age.
Accounts Receivable Age of Accounts Receivable Expected Percent Uncollectible
$880,000 Not yet due 1.30%
352,000 1 to 30 days past due 2.05
70,400 31 to 60 days past due 6.55
35,200 61 to 90 days past due 33.00
14,080 Over 90 days past due 69.00
Required:
a. Compute the required balance of the Allowance for Douitful Accounts at December 31 using an aging of accounts receivable.
b. Prepare the adjusting entry to record bad debts expense at December 31.
Answer:
Jarden Co.
a. The required balance of the Allowance for Doubtful Accounts at December 31, using an aging of accounts receivable is:
= $44,598.
b. Adjusting Journal Entry:
Debit Bad Debts Expense $28,098
Credit Allowance for Doubtful Accounts $28,098
To record the bad debts expense and bring the Allowance for Doubtful Accounts to a credit balance of $44,598.
Explanation:
a) Data and Calculations:
Allowance for Doubtful Accounts, credit balance = $16,500
Accounts Age of Accounts Expected Uncollectible
Receivable Receivable Uncollectible Allowance
Percent
$880,000 Not yet due 1.30% $11,440 ($880,000*1.30%)
352,000 1 to 30 days past due 2.05 7,216 ($352,000*2.05%)
70,400 31 to 60 days past due 6.55 4,611 ($70,400*6.55%)
35,200 61 to 90 days past due 33.00 11,616 ($35,200*33.00%)
14,080 Over 90 days past due 69.00 9,715 ($14,080*69%)
$1,351,680 $44,598
Adjustment:
Ending balance $44,598
Beginning balance $16,500
Bad Debts Expense $28,098