Answer:
Its action would be optimal given an ordering cost of $28.31 per order
Explanation:
According to the given data we have the following:
economic order quantity, EOQ= 55 units
annual demand, D=235
holding cost per one unit per year, H=40%×$11=$4.4
ordering cost, S=?
In order to calculate the ordering cost we would have to use the following formula:
EOQ=√(<u>2×D×S)</u>
(H)
Hence, S=<u>(EOQ)∧2×H</u>
2×D
S=<u>(55)∧2×4.4</u>
2×235
S=<u>13,310</u>
470
S=$28.31
Its action would be optimal given an ordering cost of $28.31 per order
Answer:
NSF check is also called bounced check, NSF stands for Non-Sufficient Funds. These checks cannot be cashed because of insufficient funds in the payer's account. A client needs to pay bank fees for negotiating a check with non- Sufficient funds. All the banks charge a fee for the bounced check. In case of non sufficient funds, there is deduction from the balance as per the banks statement.
Answer:
Debit : Account Payable $1,600
Credit : Discount Received $32
Credit : Cash $1,568
Explanation:
The correct journal entry to record the payment on July 28 includes a Debit to Accounts Payable and Credit to Discount and Cash. Cash should be after returns and discount received.
Answer:
Explanation:
Since the fair value of the division is less than the carrying value of the division so the loss on impairment is recorded
The journal entry to record the impairment of the goodwill is shown below:
Loss on impairment A/c Dr $30,000
To Goodwill A/c $30,000
(Being loss on impairment is recorded)
The computation is shown below:
= Carrying value - fair value
= $300,000 - $270,000
= $30,000
Answer:
a debit to Accounts Payable for $1,400 and a $1,400 credit to Purchase Returns allowances
Explanation:
Periodic inventory system is one that updates information on inventory on a periodic basis. This is opposite of perpetual inventory system that requires update of inventory system at all times.
In the scenario the merchandiser bought the goods on account. That means he did not pay cash but rather bought on credit.
On purchasing the items accounts payable will be credited thereby increasing the account balance.
Since the items are being returned a debit will be applied to accounts payable resulting in a decrease in the account balance.
A credit will now be posted to purchase returns allowances to show that products have been returned by a buyer
