Answer:
Sept. 6 Purchased calculators from Green Box Co. at a total cost of $1,620, terms n/30.
Dr Inventory 1,620
Cr Accounts receivable 1,620
9 Paid freight of $50 on calculators purchased from Green Box Co.
Dr Inventory 50
Cr Cash 50
10 Returned calculators to Green Box Co. for $38 credit because they did not meet specifications.
Dr Accounts payable 38
Cr Inventory 38
12 Sold calculators costing $520 for $690 to University Book Store, terms n/30.
Dr Accounts receivable 690
Cr Sales revenue 690
Dr Cost of goods sold 520
Cr Inventory 520
14 Granted credit of $45 to University Book Store for the return of one calculator that was not ordered. The calculator cost $34.
Dr Sales revenue 45
Cr Accounts receivable 45
Dr Inventory 34
Cr Cost of goods sold 34
20 Sold calculators costing $570 for $760 to Campus Card Shop, terms n/30.
Dr Accounts receivable 760
Cr Sales revenue 760
Dr Cost of goods sold 570
Cr Inventory 570
Answer:
The answer is B.
Explanation:
Prepaid expense is an expense that has been paid for but the benefits or satisfactions have not been fully derived. They are yet to be recorded as an expense.
Prepaid expense is an asset to a business or firm. For example, a business has paid for an insurance that will last for a year or has paid for a rent that will last a year.
As the benefit is being enjoyed, the business will recognize it as an expense and prepaid expense account in the balance sheet will decrease by the same amount.
The correct answer is B. prepaid expense has not yet been recorded as expenses but have been paid for.
Answer:
a) 302.28
b)3,476.23
c)3,476.23
d) 142 units
Explanation:
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<u><em>Where: </em></u>
D = annual demand = 14,200
S= setup cost = ordering cost = 74
H= Holding Cost = 23.00
EOQ = 302.2811821 = 302.28
holding cost:
average inventory x holdign cost
302.28 / 2 x $23 = 3476.233594
ordering cost:
order per year x cost per order
14.200 / 302.28 x $74 = 3,476.233594
14,200 / 300 = 47.33 units per day
47.33 x 3 = 141.99 reorder point