Answer:
$3,000
Explanation:
Calculation to determine How much bad debts expense will Beautiful Lawns report in 2016
Using this formula
Bad debts expense=Estimated doubtful accounts -Allowance for Doubtful Accounts credit balance
Let plug in the formula
Bad debts expense=$3,600-$600
Bad debts expense=$3,000
Therefore The amount of bad debts expense that Beautiful Lawns will report in 2016 is $3,000
Answer:
option (B) 100
Explanation:
Data provided in the question:
Number of days supplier takes to deliver an order once it has been placed i.e the lead time = 25 days
Standard deviation of daily demand = 20
Now,
Standard deviation of usage during lead time
= Standard deviation of daily demand × √(Lead time)
= 20 × √25
= 20 × 5
= 100
Hence,
The answer is option (B) 100
Answer:
all are correct A, B and C
Explanation:
The marginal cost hiring another worker and producing a sandwich = $5.50 per sandwich, which is higher than the marginal revenue.
If the selling price per sandwich is $5 and the marginal cost per sandwich is $5.50, the firm will lose $0.50 for every sandwich that it sells.
Therefore the firm would be losing money is they hire an extra worker.
In order to maximize the profit, the marginal cost = selling price.
Answer:
There is unrealised profit on the equioment sold by Play inc to Statetion Corp.
the Adjustment include
- Deduct net unrealised profit of $16,000 from Equipment
- Deduct net unrealised profit of $16,000 from Group(consolidated )retained earnings.
Amount to be recognized as unrealized profit in the consolidated income statement is $16,000
Explanation:
Computation of Net unrealized profit
Unrealized profit ( $50,000 - $30,000) 20,000
Depreciation on Unrealized profit( 20,000/5) <u> (4,000</u>)
Net unrealized profit <u> 16,000</u>
Answer:
$1,000,000
Explanation:
The Bond Issued less than its face value is issued on the discount. This discount is recorded and amortized until the maturity of bond.
Discount on the Bond = Face value - Issuance value = ($1,000 x 1,000) - ($1,000 x 1,000) x 99% = $1,000,000 - $990,000 = $10,000
Journal Entry
Dr. Cash $990,000
Dr. Discount on Bond $10,000
Cr. Bond Payable $1,000,000
Bond Liability on June 30, 20x5 is $1,000,000.