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ratelena [41]
3 years ago
12

The following three independent sets of facts relate to contingent liabilities: 1. In November of the current year an automobile

manufacturing company recalled all pickup trucks manufactured during the past two years. A flaw in the battery cable was discovered and the recall provides for replacement of the defective cables. The estimated cost of this recall is $2 million. 2. The EPA has notified a company of violations of environmental laws relating to hazardous waste. These actions seek cleanup costs, penalties, and damages to property. The company is reasonably certain there will be cost associated with the cleanup, but cannot estimate the amount. The cleanup cost could be as high as $4,000,000 or as little as $500,000 and insurance could reimburse all or part of the cost. There is no way to more accurately estimate the cost to the company at this time. 3. Holland Company does not carry property damage insurance because of the cost. The company has suffered substantial losses each of the past three years. However, it has had no losses for the current year. Management thinks this is too good to be true and is sure there will be significant losses in the coming year. However, the exact amount cannot be determined.
Business
1 answer:
aalyn [17]3 years ago
5 0

Answer:

Situation 1 is a probably contingency. This recall is occurring and can be estimated as costing $2 million. This amount should be charge to the warranties payable and warranties expense accounts.

Date

Particulars

Ref.no

Debit $

Credit $

Warrantee expenses

20,00,000

Warranty payable account

20,00,000

[To record the estimated claims]

Comment

Step 3 of 3

Situation 2 is a reasonable contingency. The costs are possible and there are rough estimates for cleanup but there are also rough estimates about reimbursements for property damage. This situation would be disclosed on the balance sheet.

Situation 3 is a remote contingency. There is a small change that there could be property damage but there is no way to determine how much or what the costs could be. There is no amount marked down for this situation

Explanation:

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Suppose you are interviewing someone for the position of sales representative. Which of these personality traits might be a usef
julia-pushkina [17]

Answer:

e. High extraversion

Explanation:

The personality trait that can be a useful performance indicator for the position of a sales representative would be the trait of high extraversion.

Extroversion is a personality trait of more sociable people, that is, they are people who have the ability to maintain relationships with other people, have socialization facilities and have high energy to deal with social situations, such as parties, meetings and negotiations.

An outgoing sales rep could be helpful in personally dealing with customers and convincing customers with helpful arguments to buy the product.

8 0
3 years ago
You purchased a bond 69 days ago for $891.26. You received an interest payment of $24.00 56 days ago. Today the bond’s price is
inna [77]

Answer:

1.97%

Explanation:

The formula to calculate the holding period return is:

HPR=(Income generated+(ending value-initial value)/Initial value)*100

Income generated= $24

Ending value= $884.89

Initial value= $891.26

HPR=(24+(884.89-891.26)/891.26)*100

HPR=(24+(-6.37)/891.26)*100

HPR=(17.63/891.26)*100

HPR=0.0197*100

HPR= 1.97%

According to this, the holding period return (HPR) on the bond as of today is 1.97%.

4 0
3 years ago
org303 According to the textbook, the most important reason for organizations to rely on research is that it ultimately
Leviafan [203]

Answer:

Explanation:

The most important reason for organizations to rely on research is that it ultimately provides the organization with insight on how a specific decision will perform in the target market and what effects it will have on the company. This is because research provides valuable information such as a target population's interests, hobbies, spending behaviors, needs, likes/dislikes, etc. All of which are factors that help determine if that population will buy a certain product and increase the organizations revenue.

7 0
4 years ago
Which of the following is true of normal costing? a.Actual direct labor cost is traced to products, but estimated direct materia
KengaRu [80]

<u>C) </u><u>Actual direct materials and direct labor costs are traced to products, but estimated overhead costs are assigned using predetermined rates.</u>

<u />

<h3><u>What Are the Normal Costs?</u></h3>

The cost of a product is determined using standard costing. This method includes a standard overhead rate and actual direct costs applied to a product. It includes the actual cost of labor, materials, and a standard overhead rate that is calculated based on the product's actual consumption of the allocation base in question (such as direct labor hours or machine time).

You can prorate the difference between the cost of goods sold and inventory if there is a discrepancy between the standard overhead cost and the actual overhead cost, or you can charge the difference to the cost of goods sold (for lesser discrepancies).

<u />

Learn more about the costs of the product with the help of the given link:

brainly.com/question/15506611?referrer=searchResults

#SPJ4

7 0
2 years ago
Lead time for computers is 5 days with daily demand of 25 and safety stock of 15 computers. If management wants to use 10 kanban
jekas [21]

Answer:

Option E (13) is the correct answer.

Explanation:

According to the question, the values are:

Daily demand,

d = 25

Safety stock,

S = 5

Lead time,

L = 5

Number of kanbans,

N = 10

Now,

The formula is:

⇒ N=\frac{dL+S}{C}

By putting the values, we get

⇒ 10=\frac{25\times 5+5}{C}

⇒ 10=\frac{130}{C}

⇒ C=\frac{130}{10}

⇒     =13

8 0
3 years ago
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