Explanation:
The journal entry is as follows
Account payable A/c Dr $1,800
To Merchandise Inventory A/c $36
To Cash A/c $1,764
(Being the amount due is paid)
The computation is shown below:
For Account payable
= $2,000 - $200
= $1,800
For Merchandise inventory
= ($2,000 - $200) × 2%
= $36
And, the remaining balance is credited to the cash account
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Answer:
Option A is correct one.
<u>Are more summarised than for lower levels of management</u>
Explanation:
For higher levels of management, responsibility accounting reports<u> are more summarised than for lower levels of management.</u>
It is a summarised report facilitating the higher levels of management in order to keep a track of performance of low level management.
Answer:
Explanation:
In this question, we apply the lower of cost or market (LCM) rule which is shown below:
For Product 1
The Cost is $20
And, the market value = Selling price - selling cost - normal profit margin
= $40 - $6 - $5
= $29
So, the lower value would be $20
For Product 2
The Cost is $90
And, the market value = Selling price - selling cost
= $120 - $40
= $80
So, the lower value would be $80
For Product 3
The Cost is $50
And, the market value = Selling price - selling cost - normal profit margin
= $70 - $10 - $12
= $48
So, the lower value would be $48
In the product 2, the replacement cost is 85 and the market value without considering the normal profit margin is $80 which is less than the replacement cost that's why we do not take the normal profit margin
