1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nina [5.8K]
3 years ago
6

On January 5, Merkel Inc. purchases office equipment for its new branch office from Norbert Company. Merkel requests that the eq

uipment be delivered after the renovation of the branch location is completed. On May 1, Merkel informs Norbert that it wishes delivery as soon as possible. The equipment is delivered on May 4. On what date should Norbert recognize the related revenue?
Business
1 answer:
Marianna [84]3 years ago
8 0

Answer:

The answer is: January 5

Explanation:

This is a bill and hold arrangement which enables payment ahead of the delivery of the equipment.

Once Merkel places the purchase order, it should record the cost of the office equipment. It is usual that companies pay in advance a percentage of the total cost and the rest when the equipment is delivered.

You might be interested in
High Country Corporation acquired two inventory items at a lump-sum cost of $80,000. The acquisition included 6,000 units of pro
SCORPION-xisa [38]

Answer:

$9,000

Explanation:

Calculation for the amount of gross profit that should be recognize

First step is to calculate the

A's sale value = 6,000 unit*12 per unit

A's sale value = $72,000

Second Step is to calculate B's sale value

B's sale value = 14,000 units*4 per unit

B's sale value= $56,000

Third step is to calculate the Total sale value

Total sale value = $72,000 + $56,000

Total sale value= $128,000

Fourth Step is to calculate the Cost of goods sold of A for 6,000 units and 2,000 units

Cost of goods sold of A for 6,000 units = ($72,000/$128,000) * $80,000

Cost of goods sold of A for 6,000 units = 0.5625*$80,000

Cost of goods sold of A for 6,000 units= $45,000

Cost of goods sold of A for 2,000 units = $45,000*2,000/6,000

Cost of goods sold of A for 2,000 units = $15,000

Last step is to calculate the Gross profit of A for 2,000 units

Gross profit of A for 2,000 units = (2,000*12 per units) - 15,000

Gross profit of A for 2,000 units = $24,000 - $15,000

Gross profit of A for 2,000 units = $9,000

Therefore the amount of gross profit that should be recognize will be $9,000

7 0
3 years ago
Joseph wants to open up a skateboard shop with his cousin Billy. He would like for them to own and operate the shop equally. Wha
Olegator [25]

This would be a general partnership because both parties are responsible equally.

6 0
3 years ago
Read 2 more answers
Social Security benefits are increased each year in proportion to the increase in the CPI, even though most economists believe t
erik [133]

Answer:

False The statement does not correlate

5 0
3 years ago
A binding price ceiling for apartments (effective rent control) will:
wolverine [178]

Answer: lead to a shortage cause quantity demanded exceeds quantity supplied of rental housing.

Explanation: A price ceiling is a government regulated price control that sets the legal maximum price that can be charged for a good. The price ceiling is binding when it is set below the equilibrium price. In this situation, the price ceiling prevents the forces of demand and supply to intersect at the equilibrium price. At the ceiling price, demand for the good is greater than its supply. Thus, an effective price ceiling which is set below the equilibrium price creates a shortage in the market.

5 0
3 years ago
Which of the following are necessary conditions for successful price discrimination?
mixer [17]

Answer:

d. at least two different markets with different price elasticities of demand

Explanation:

The theory of microeconomics about price differentiation is based on the concept of elasticity of demand. Price elasticity of demand is a measure of the sensitivity of demand for a good or service to changes in the price of that product. We say that the price elasticity of demand is elastic when a percentage change in the price of this good has major impacts on demand. On the contrary, we say that the price elasticity of demand is inelastic when variations in the price of goods have little or no influence on demand.

For price discrimination to take place, the offeror must be able to sell the same product at different prices to at least two different groups. This will depend on the price elasticity of consumer demand for the good in each of the markets. Thus, if one group is less elastic than the other, the offeror will be able to sell the goods at different prices.

An example: air market. Consumers are often more price sensitive when traveling for tourism than for business. Thus, a higher price may be charged to executives. which has lower price elasticity of demand than tourists.

6 0
3 years ago
Other questions:
  • Information-based industries are most susceptible to which one of Porter’s five forces?
    6·1 answer
  • Nelson, a minor, misrepresents his age when agreeing to a contract to buy a restored, antique soda vending machine from old is n
    6·1 answer
  • Mr. and Mrs. Anderson own three shares of Magic Tricks Corporation's common stock. The market value of the stock is $60. The And
    12·1 answer
  • IDX Technologies is a privately held developer of advanced security systems based in Chicago. As part of your business developme
    7·1 answer
  • Inventory at the end of the year was inadvertently overstated. Which of the following statements correctly states the effect of
    10·1 answer
  • On December 31, 2020, Blossom Inc. has a machine with a book value of $1,034,000. The original cost and related accumulated depr
    12·1 answer
  • As of December 31, 2017, Nilsen Industries had $2,000 of raw materials inventory. At the beginning of 2017, there was $1,600 of
    5·1 answer
  • Which scenario describes the highest level of productivity?
    5·2 answers
  • Product, price, place, and promotion are the four elements in the
    6·1 answer
  • Making the choice to invest today or to postpone that investment to a future date is a choice between mutually exclusive project
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!