Answer:
a. Dr Inventory $10,000
Cr Accounts payable $10,000
b. Dr Accounts payable $10,000
Cr Cash $9,800
Cr Inventory $200
Explanation:
Preparation of the Journal entries Under a perpetual inventory system,
a. Dr Inventory $10,000
Cr Accounts payable $10,000
( To record purchase of merchandise)
b. Dr Accounts payable $10,000
Cr Cash $9,800
($10,000-$200)
Cr Inventory $200
(2%*$10,000)
( To record payment for merchandise)
Discount amount = Amount due x Discount percentage
Discount amount= 10,000 x 2/10
Discount amount= $200
Answer:
Average customer life value
CLV = 1260
Explanation:
Fis, we will calcualteteh gross margin.
For that we need the revenue:
We will calculate the average revenue per year:
50% 30 dollars per month = 180
40% 50 dollars per month = 240
10% 80 dollars per month = 96
average annual revenue per customer: 516
now we ill calcualte the gross margin:
revenue 516
maintenance (45)
administrative (30)
gross margin 441
CLV = 1260
Answer:
12,320 units
Explanation
First we have to determine the target profit.
Desired Profit = $112,000 x 10% = $11,200
Now we will calculate the contribution margin which is a net value of selling price and variable cost.
Contribution margin = Sales - Variable cost
Contribution margin = $35 - $25
Contribution margin = $10 per unit
Formula for target sales is as follow
Target Sales = ( Fixed cost + Target profit ) / Contribution margin
Target Sales = ( $112,000 + $11,200 ) / $10
Target Sales = $123,200 / $10 = 12,320 units
Answer:
The cumulative difference is a deferred tax asset of $ 2100.
Explanation:
The easiest approach to answering this question will be to use table differentiating the amounts for each year between accounting depreciation and tax depreciation
We will shorten amount to thousands to make the layout easier to read.
Year 1 Depreciation - 100 Tax - (200) Difference (100) Tax at 21% - (21)
Year 2 Depreciation - 100 Tax - (150) Difference (50) Tax at 21% - (10,5)
Year 3 Depreciation - 100 Tax - (80) Difference 20 Tax at 21% - 4,2
Year 4 Depreciation - 100 Tax - (50) Difference 50 Tax at 21% - 10,5
Year 5 Depreciation - 100 Tax - (10) Difference 90 Tax at 21% - 18,9
Cumulative temporary difference over the 5 year period = 2,1 or 2100 deferred tax asset. It's recognised as an asset as we will pay more tax in the current period, but less tax in the future. Tax liabilities reduce tax payable in the current period, but increase tax payable in the future.
