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andrey2020 [161]
3 years ago
7

Mr. Noriega paid $700 for each of three suits. Since all of the suits were pleasing to his taste, he would have been willing to

pay according to this schedule: $950 for the first suit, $800 for the second suit, and $700 for the third suit. How much was his consumer surplus?a. $100.b. $150.c. $350.d. $250.
Business
1 answer:
yarga [219]3 years ago
8 0

Answer: C)$350

Explanation:

First suit

Price willing to pay=$950

Actual paid price=$700

Consumer surplus=$950-$700

=$250

Second suit

Price willing to pay=$800

Actual paid price=$700

Consumer surplus=$800-$700

=$100

Third suit

Price willing to pay=$700

Actual paid price=$700

Consumer surplus=$700-$700

=$0

Total surplus= 1st+2nd+ 3rd consumer surplus

= $250+$100+$0

=$350

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During the taking of its physical inventory on August 31, 2019, Kate Interiors Company incorrectly counted its inventory as $366
soldier1979 [14.2K]

Answer:

Balance sheet

Inventory - Understatement by $11,600

Owners equity - Understatement by $11,600

Income statement

Cost of goods sold - Overstatement by $11,600

Net income - Understatement by $11,600

Explanation:

The movement in an inventory account which is the difference between the opening and ending balances is a function of the purchases and the sales during the period.

This is captured in the equation below

Opening balance + purchases - cost of goods sold = ending balance

Hence an understatement of the ending balance would result in an overstatement of the cost of goods sold thus an understatement of the net income (and owner's equity).

The understatement in closing inventory balance is

= $378,500 - $366,900

= $11,600.

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3 years ago
Without the cost concept, accounting reports would become unstable and unreliable.
Ann [662]
A. True. i believe the answer is A
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1. A U.S. parent has a subsidiary located in Hong Kong. In which situation will the U.S. parent remeasure the accounts of the su
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3 years ago
"Customer Z is a single 26-year-old man who earns $125,000 annually. He informs you that he is getting married and that his new
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Answer:

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5 0
2 years ago
Journalize the following transactions in the accounts of Sedona Interiors Company, a Restaurant Supply Company that uses the all
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Answer:

Accounts Receivables 19900 debit

Sales Revenues  19900 credit

--to record sale--  

COGS  14300 debit

Inventory  14300 credit

--to record COGS of the previous sale--    

Cash    4,200 debit

Accounts Receivables 4,200 credit

--to record colelction from Beijing Palace Co--

Allowance for doubtful accounts 15,700 debit

                Accounts Receivables      15,700 credit

--to record the write-off using allowance method--

Accounts Receivables      15,700 debit

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--to record reversal when payment is received--

Cash   15,700 debit

       Accounts receivables 15,700 credit

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Explanation:

We write-off the blaance of the account

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Then, we have to reverse the entry to nulify it. Then we record the colelction like any other.

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