Supply is the total quantity of a specific good and service that are available to the consumers in the market while demand is the amount or quantity of goods and services that consumers are able and willing to buy in the market. Equilibrium point is the point at which the demand curve meets the supply curve such that the quantity demanded is equal to the quantity supplied. Therefore, at this point prices in the market will be at equilibrium (equilibrium price) which are not too high or too low.
Answer:
Explanation:
Date Unit Unit cost Total Goods sold Cost Total
May 1 28 9 252 28 9 252
May 15 26 10 260 26 10 260
May 24 39 11 429 26 11 286
Total 93 941 80
1) Weighted average unit cost = 941/93 = $10.118
FIFO method
2)Ending inventory (93-80)*11 =$ 143
FIFO method assumes that the first set of inventory are the first to be sold
LIFO method
LIFO assumes that the last set of inventory are the first to be sold
Goods Sold Cost Total
39 11 429
26 10 260
15 9 135
Ending Inventory = (93-80)*9 = $117
Average Cost Method
Ending Inventory = 13 * 10.118 =$131.534
Answer:
C. a debit to Bad Debts Expense account
Explanation:
using the direct write-off method, we do not use the allowance. At write-off we recognize the directly the bad debt expense and decrease the accounts receivable.
Is important to notice that the direct method violates the accounting matching principles as, it recognize an expense based on events which occured at prior periods
Answer:
Dr Account receivable $65,940
Cr Sales Revenue $62,800
Cr Sales tax payable $3,140
Explanation:
Sales of merchandise inventory on account
Dr Account receivable $65,940
Cr Sales Revenue $62,800
Cr Sales tax payable $3,140
Sales tax payable = Sales Revenue × Sales tax percentage
$62,800×5%
=$3,140
Amount of account receivable
Account receivable = Sales Revenue + Sales tax payable
$62,800+ $3,140
=$65,940
Answer:
D. This agreement is not in the best interest of society, because there will be less competition and the price of cell phones will be significantly below marginal cost.
Explanation:
If the market for cell phones is an oligopoly market(Oligopoly market is a market situation where few firms are dominating the market), and the consumption and production of cell phone generate no negative externalizes and the major companies desired to collude and charge a single price for their product then this agreement is not in the best interest of society, because there will be less competition and the price of cell phones will be significantly below marginal cost.
