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Ierofanga [76]
4 years ago
13

Neakanie Industries sells specialized mountain bikes. Each specialized bike purchased includes free maintenance service for 12 m

onths. The price of the specialized bike is $1,900. When sold separately, a maintenance contract is $600 and a comparable but non-specialized bike is $1,400. What amount of revenue will Neakanie recognize at the date of sale for each bike
Business
1 answer:
fiasKO [112]4 years ago
8 0

Answer:

$1,330 per bike

Explanation:

the amount of revenue that Neakanie must recognize = total sales price x [price of the bike / (price of the bike + maintenance service)] = $1,900 x [$1,400 / ($1,400 + $600)] = $1,900 x 0.7 = $1,330 per bike

the journal entry should be:

Dr Cash 1,900

    Cr Sales revenue - bike 1,330

    Cr Prepaid maintenance services - bike 570

the prepaid maintenance service should be accrued during the year, and revenue must be recognize after each month passes.

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The natural rate of unemployment:_______. a. means that the economy will always operate at that rate. b. is equal to the total o
blsea [12.9K]

Answer:

B. is equal to the total of frictional and structural unemployment.

Explanation:

The natural rate of unemployment is the sum of frictional and structural unemployment at any given time. Economists estimate that for the United States this rate is around 3.5%.

Unemployment has a natural rate because no matter how good the economy is doing, some people either do not want to work, are in between jobs (frictional unemployemt), or lack the skills necessary to get employed and need to undergo training (structural unemployment).

3 0
3 years ago
Goliath Corp. has beginning accounts receivable of $2,000. During the year, Goliath sold goods to customers on account for $10,0
pishuonlain [190]

Answer:

$12,000

Explanation:

According to the accrual accounting method, the reporting of the transactions should be performed on an accrual basis which means whether or not the payment is paid but it is reported in the account books.

The revenue should be recorded when it is earned or realized and the expenses are recorded when it is incurred

So, in the given scenario, the amount based on accrual basis sales would be

= Goliath sold goods to customers on account + Goliath also sold goods to customers for cash

= $10,000 + $2,000

= $12,000

3 0
4 years ago
A 10% increase in cigarette prices has been found to result in a _____ decrease of smokers.
Reil [10]
<span>The correct answer is B - a 10% increase in cigarette prices has been found to result in a 4% decrease in smokers. This is just the figure for the overall nation though, for young people the figure is higher, and for children higher still.</span>
4 0
4 years ago
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Carlos manages a grocery store in a country experiencing a high rate of inflation. he is paid in cash twice per month. on payday
Luda [366]

This is an example of the Shoe-leather effect of inflation

Explanation: Here Carols faces a lot of inconvenience in minimizing the cash holdings he has in the fear of it losing its value in the long term. So, he pays a steep fee to convert which we can call as shoe leather costs.

4 0
4 years ago
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stiv31 [10]

Answer:

Workmen Compensation

Explanation:

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It is that cost of rehabilitation and medical care for employees  injured at the place of job. It also compensates the employees for lost wages and give death benefits for their dependents.

6 0
3 years ago
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