Answer:
Courts Distributors and Eastinghouse Corporation
Dispute over Contract Price
The two parties have a legal contract. The contract was established when Courts requested Eastinghouse to send the refrigerators and bill later.
The exact price for the contract is in dispute. This dispute can be resolved between the parties. Reference to the market price will help resolve the dispute, otherwise, the parties may seek alternative dispute resolutions, like litigation, mediation, or arbitration.
Explanation:
a) Data and Analysis:
Eastinghouse's invoice price for the refrigerators = $140,000
Courts' adopted market price = $120,000
b) Since Courts' reference to the price is with regard to the wholesale market price, it may be that Eastinghouse quoted the retail price instead. Since Courts is a distributor, it has the right to be charged a wholesaler's price and not a retailer's. Therefore, we can conclude that after due reference to the prevailing market price of similar refrigerators, the two parties may agree to a price of $120,000 or a little higher.
Answer:
b. debit to Accounts Receivable and credit to Sales Discount Forfeited for $120
Explanation:
The last payment of $12,000 it's without discount because was not made within the 10 days, so it's necessary to Debit Cash by $12,000 and reverse the accrual for the remaining $120 discount offered not applied.
The it's necessary to record this entry:
b. debit to Accounts Receivable and credit to Sales Discount Forfeited for $120
Answer:
True
Explanation:
Marketing is about to under understanding what generate values to the customer.
Answer:
Yes, In situation of high risk credit will create more problem due to bankruptcy.
Explanation:
I Think if business will buy more credit in times of high risk then business will end up in stage of bankcruptcy because in that situation business will making poor profits and no revenue so it won't be able to pay back debt.
Answer:
$27.33
Explanation:
For computing the one share of the common stock after six years from now first, we have to determine the price of the common stock which is shown below
Price of the common stock = Next year dividend ÷ (Required rate of return - growth rate)
= $2.05 ÷ (11.2% - 2.50%)
= $23.56
The growth rate is
= ($2.05 - $2) ÷ ($2)
= 2.50%
Now the one share of the common stock after six years is
= $2 × 1.025^7 ÷ (11.2% - 2.50%)
= 2.3773715073 ÷ 8.7%
= $27.33
