Answer:
c) credit to Accounts Receivable - ZRT.
f) debit to Allowance for Doubtful Accounts.
Explanation:
As for the information provided,
We know in allowance method, provision is created as and when there are doubtful debts, for which entry is
Bad Debts Expense Account Dr.
To Allowance for doubtful debts.
And when the bad debts are actually written off then,
The entry will reduce the balance of accounts receivables and that of allowance as well.
Entry will be:
Allowance for Doubtful debts A/c Dr.
To Accounts Receivables.
Thus, correct options shall be:
Option c) and f)
This is false abandonment options should decrease a project's risk.
Answer:
The x-coordinate of the intersection point represents the number of units for which the profit is 0.
Explanation:
The given revenues function is
The cost function is
It is given that graph of both function intersect each other at (2000,8000).
Intersection point of cost and revenues function represents that the total cost and total revenue are equal.
Profit = Total revenue - Total cost
Profit = TR - TC
Profit = TR - TR (TR=TC)
Profit = 0
The x-coordinate of the intersection point represents the number of units for which the profit is 0.
x-coordinate of the intersection point = 2000
The profit is 0 if the number of units is 2000.
Answer:
1. Pronghorn shipped goods costing $54,380 to Hemlock Company FOB shipping point on December 28. The goods are not expected to reach Hemlock until January 12. The goods were not included in the physical inventory because they were not in the warehouse.
- These goods were correctly excluded from the inventory account because the purchase was FOB shipping point, which means that title passes to the buyer once the goods leave the sellers shipyard or warehouse.
2. The physical count of the inventory did not include goods costing $96,250 that were shipped to Pronghorn FOB destination on December 27 and were still in transit at year-end.
- These goods were correctly excluded from the inventory account because the purchase was FOB destination, which means that title passes to the buyer only after the goods are delivered.
3. Pronghorn received goods costing $27,180 on January 2. The goods were shipped FOB shipping point on December 26 by Yanice Co. The goods were not included in the physical count.
- They should have been included in the inventory account because the purchase was FOB shipping point, which means that title passes to the buyer once the goods leave the sellers shipyard or warehouse.
4. Pronghorn shipped goods costing $46,830 to Ehler of Canada FOB destination on December 30. The goods were received in Canada on January 8. They were not included in Pronghorn physical inventory.
- They should have been included in the inventory account because the sale was FOB destination which means that title passes to the buyer only after the goods are delivered.
5. Pronghorn received goods costing $45,270 on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to arrive December 31. This purchase was included in the ending inventory of $277,880.
- These goods should have been excluded from the inventory account because the purchase was FOB destination, which means that title passes to the buyer only after the goods are delivered.
Answer:
See below.
Explanation:
Amount Borrowed = Shares * Price * (1-Initial Margin)
900*90*(1-0.65) =81000*28350 = $28,350
Answer = $ 28,350 (D)
