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2 years ago

Hip Manufacturing produces denim clothing. This year it produced 3,040 denim jackets at a cost of $91,200. These jackets were

Business

1 answer:

Mila [183]2 years ago

4 0

1. The income for each alternative for the damaged jackets of Hip Manufacturing is as follows:

Scrap Recycle Rework

Sales Revenue $18,240 $36,480 $136,800

Additional cost 0 6,080 103,360

Income $18,240 $30,400 $33,440

2. The chosen alternative is C. reworking.

<h3>Data and Calculations:</h3>

Production units = 3,040

Production costs = $91,200

Scrap Recycle Rework

Sales Revenue $18,240 $36,480 $136,800

Additional cost 0 6,080 103,360

Income $18,240 $30,400 $33,440

Thus, reworking yields the highest income and should be chosen as it reduces the loss from the damage more than scrapping or recycling.

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Johnson Company calculates its allowance for uncollectible accounts as 10% of its ending balance in gross accounts receivable. T

Margaret [11]

Answer:

<em>Incomplete question is "2. What journal entry should Johnson record to recognize bad debt expense for 2021? 3. Assume Johnson made no other adjustment of the allowance for uncollectible accounts during 2021. Determine the amount of accounts receivable written off during 2021 4. If Johnson instead used the direct write-off method, what would bad debt expense be for 2021?"</em>

1. Gross accounts Receivable = Allowance Account balance at beginning / 10%

= $30,000 / 10%

= $300,000

2. Year Account Title Debit Credit

2021 Bad debt expense $105,000

($500,000*10% + $55,000)

To Allowance for Doubtful Accounts $105,000

3. Accounts receivable written off = Beginning balance of Allowance Account - Ending Balance of Allowance account

= $30,000 - (- $50,000)

= $30,000 + $50,000

= $80,000

4. Bad debt expense for 2021 (direct write off method) = Amount written off = $80,000

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3 years ago

An employer can refuse to hire you if you refuse a drug screening test or background check.

Kruka [31]

Yes. this statement is true.
Why?
Because it is one of the Company's requirements to have a medical certificate before you can be deployed to their company.
If in case you will refuse to follow this order from them, they have all the authority to backout from hiring you to their comapany

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3 years ago

Read 2 more answers

The price of diamonds is high, in part because the majority of the world’s diamonds are controlled by a single firm. This is an

kirill115 [55]

Answer:

Option (b) is correct.

Explanation:

This is a case of monopoly market condition where there is a single firm operating the whole market. The price of the products is set by the single firm and the buyers in this market are price taker. The monopolist can earn normal profit, losses and abnormal profit in the short run and can earn normal profit and abnormal profit in the long run.

In our case, the price of diamonds is high because there is only single firm in the whole market and there is no other competitors in the market. That's why they are charging the higher prices.

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3 years ago

____________ is when suppliers allow a business to take possession of needed goods and pay for them at a later date or in instal

lys-0071 [83]

Trade credit

Small firms may be able to get finance in the form of trade credit from their suppliers. Suppliers enable the company to obtain the products and services it requires and pay for them later or in installments.

<h3>What is the meaning of trade credit?</h3>

A business-to-business (B2B) agreement known as trade credit allows customers to make purchases of goods without paying in cash upfront and to make payments to suppliers at a later date. Businesses that use trade credits typically give customers 30, 60, or 90 days to make payment, with the transaction being documented by an invoice.

Trade credit can be compared to a form of 0% financing because it increases an organization's assets while deferring payment for a certain amount of products or services to the future and requires no interest payments throughout the repayment period.

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2 years ago

You are considering two mutually exclusive projects with the following cash flows. Which project(s) should you accept if the dis

larisa [96]

Answer:

NPV Project A = - $825.31

NPV Project B = $6119.89

So, at a discount rate of 8.5%, Project B should be accepted.

NPV Project A = - $6804

Npv Project B = - $3764.48

So, at a discount rate of 13%, neither of the projects should be accepted.

Explanation:

One of the methods to evaluate a project is to determine the NPV or Net Present Value from the project. If a project provides a positive NPV after discounting the cash flows from the project at a set discount rate, the project should be accepted. If the project gives a negative NPV, the project should be discarded.

The NPV is calculated as follows,

NPV = CF1 / (1+r) + CF2 / (1+r)^2 + ... + CFn / (1+r)^n - Initial cost

Where,

CF1, CF2, ... represents the cash flows in year 1 and year 2 and so on
r is the discount rate

<u>At 8.5% discount rate</u>

NPV Project A = 31000/(1+0.085) + 31000/(1+0.085)^2 + 31000/(1+0.085)^3 - 80000

NPV Project A = - $825.31

NPV Project B = 110000 / (1+0.085)^3 - 80000

NPV Project B = $6119.89

So, at a discount rate of 8.5%, Project B should be accepted.

<u>At 13% discount rate</u>

NPV Project A = 31000/(1+0.13) + 31000/(1+0.13)^2 + 31000/(1+0.13)^3 - 80000

NPV Project A = - $6804

NPV Project B = 110000 / (1+0.13)^3 - 80000

Npv Project B = - $3764.48

So, at a discount rate of 13%, neither of the projects should be accepted.

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3 years ago