Answer:
$4,410
Explanation:
Discount refers the amount that is deducted from the usal price of a good sold or service rendered.
From the question, the credit terms 2/10, n/30 implies 2% discount if the amount owed is paid within 10 days while no discount will be enjoyed if the amount owed is paid after 10 days but must be beyond 30 days.
Therefore, the amount owed by Lulu's if the store pays within the discount period, i.e. within 10 days, can be calculated as follows:
Discount = (Purchases - Merchandise returned) * 2% = ($5,500 - $1,000) * 2% = $90
Amount owed = Purchases - Merchandise returned - Discount = $5,500 - $1,000 - 90 = $4,410.
Therefore, the amount owed by Lulu's if the store pays within the discount period is $4,410.
The depreciation expense to be recognized by Joseph in year 1 is $62,500.
<h3>What is depreciation?</h3>
Depreciation is the gradual fall in the value of a fixed asset over its economic life. It doesn't apply to intangible assets.
Given values:
The purchase cost of equipment: $325,000
Residual value: $75,000
Number of years of useful life: 4
Computation of depreciation expense for the year 1:
Therefore, the amount of depreciation charge comes out to be $62,500 to be reported in year 1.
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Answer:
maturity stage
Explanation:
At the maturity stage of the product's life cycle, the remaining companies will see their profits rise since the product is well accepted and its demand is high. The businesses will focus more on retaining their market share, since competition may between the remaining companies may increase. At this stage the main product should be improved or constantly modified to keep customers' preference and stand out over the competition.
The objectives of the board of directors will be that the commercial insurance cannot own the new insurer company because a new insurer will be formed based on mutual insurers where it will be controlled.
<h3>What is insurance?</h3>
Insurance generally refers to a contract between parties for the protection of financial loss, where one party (Insurance Company) promises to make good of the losses of the other party (Insured). It is the equitable transfer of the risk of a loss, from one entity to another in exchange for payment.
Commercial lines insurance involves protection for business and organization. Commercial insurance cannot own the new insurer company because a new insurer will be formed based on mutual insurers where it will be controlled.
Also, one of the objectives of protection is to pool the risk of a sufficiently large number of insured, hence insurance important because it helps businesses to mitigate loss.
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