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1 year ago

At year-end (December 31), Chan Company estimates its bad debts as 0.80% of its annual credit sales of $831,000.

1 answer:

7 0

Answer:At year-end (December 31), Chan Company estimates its bad debts as 0.80% of its annual credit sales of $831,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $416 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare the journal entries for these transactions. View transaction list 1 Record the estimated bad debts expense. 2 Wrote off P. Park's account as uncollectible. 3 Reinstated Park's previously written off account 4 Record the cash received on account. Credit Note :· journal entry has been entered Record entry Clear entry View general journal

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mote1985 [20]

When a local auto repair shop sponsors a local softball team, it is using the public relations element of the promotional mix.

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3 years ago

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Answer:

Economic order quantity= 1406 units
Safety Stock= 630 units
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Explanation:

Given Demand D= 78,000units/year

Ordering cost S = $38.00/order

Holding cost H = $3.00unit/year

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Standard deviation of weekly demand = 120 units

a) Economic order quantity:

EOQ = \sqrt{(2*D*S)/H}

EOQ = \sqrt{(2*78000*38)/3}

1405.7 = <u>1406 Units</u>

b)<u> Safety Stock:</u>

Weekly demand = 78000/52 =1500 units

Standard deviation of weekly demand = 120 units

Lead time is 9 weeks

Using the normsinv() in excel the Z value for the desired 96% service level is 1.75

Safety stock = z\sigma _{d}\sqrt{L}

= 1.75*120*\sqrt{9}

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Reorder point = average lead time demand + safety stock

= lead time * weekly demand + saftey stock

= 9*1500 + 630

= 13500 + 630

Reorder point = 14130

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3 years ago

Read 2 more answers

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Answer:

Explanation:

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3 years ago

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Answer:

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