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____ [38]
3 years ago
12

Ace Manufacturing purchased merchandise inventory for $8,000. At the end of the accounting period it has a market value of $7,80

0. Using the lower-of-cost-or-market rule, what is the journal entry to record the adjustment
Business
1 answer:
Naya [18.7K]3 years ago
8 0

Answer:

                                           Dr.        Cr.

Cost of Goods Sold        $200

Merchandise Inventory                $200

Explanation:

Inventory is value at Lower of Cost and Net realizable value.

Cost of Inventory = $8,000

Net Realizable Value of Inventory = $7,800

The lower value is the Net realizable value and Inventory should be reported by $7,800 on the balance sheet. The net difference of $200 is adjusted to bring the value of inventory to it net realizable value.

Expense to be recorded = $8,000 - $7,800 = $200

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You inherit $10,000 with the stipulation that for the first year the money must be invested in two stocks paying 6% and 11% annu
drek231 [11]

Answer:

5000 at 6%

6000 at 11%

Explanation:

Given that :

Total principal = 10000

Let :

Principal invested in business A = x

Principal invested in business B = y

Interest = Principal * rate * time

(x * 6% * 1) + (y * 11% * 1) = 900

0.06x + 0.11y = 900 - - - - (1)

x + y = 10000 - - - (2)

From (2)

x = 10000 - y

Put x = 10000 - y in (1)

0.06(10000 - y) + 0.11y = 900

600 - 0.06y + 0.11y = 900

600 + 0.05y = 900

0.05y = 900 - 600

0.05y = 300

y = 300 / 0.05

y = 6000

x = 10000 - y

x = 10000 - 6000

x = 5000

8 0
3 years ago
The section of the continuity plan that provides instructions for all personnel is the:
sesenic [268]
The section of the continuity plan that provides instructions for all personnel is the concept of operations.
8 0
4 years ago
Eager, a tipped employee, reported to his employer that he had received $320 in tips during March. On the next payday, April 4,
Sphinxa [80]

Answer:

Amount of OASDI taxes to withhold = $35.34

Explanation:

Find:

Amount received in march = $320

Amount of salary = $250

Find:

Amount of OASDI taxes to withhold .

Computation:

OASDI tax rate = 6.2%

Total amount = Amount received in march + Amount of salary

Total amount = $320 + $250

Total amount = $570

Amount of OASDI taxes to withhold = Total amount × OASDI tax rate

Amount of OASDI taxes to withhold = $570 × 6.2%

Amount of OASDI taxes to withhold = $35.34

5 0
3 years ago
Question 1 Multiple Choice Worth 10 points)
kipiarov [429]

Answer:

Federal Trade Commission

Explanation:

I just took the quiz and got it right.

3 0
3 years ago
At its present rate of output, Barrel O' Biscuits, a perfectly competitive firm, finds that its marginal cost exceeds its margin
Delvig [45]

Answer: Reduce output

Explanation:

 According to the given question, the barrel O' Biscuits is one of the type of perfectly competitive organization in which its overall marginal cost increasing the company's marginal revenue.

 For maximizing the profit of an organization then we should reduce the output as in the perfect competition the company majorly affected the output only and for shift the overall marginal cost of the company we reducing the output.

 Therefore, Reduce output is the correct answer.      

 

3 0
3 years ago
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