1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lilavasa [31]
3 years ago
7

Lewis Co. sold merchandise to AdCo for $48,000 and received $48,000 for that sale one month later. One week prior to receiving p

ayment from AdCo, Lewis made a $10,000 payment to AdCo for advertising services that have a fair value of $7,000. After accounting for any necessary adjustments, how much revenue should Lewis Co. record for the merchandise sold to AdCo?
Business
1 answer:
miv72 [106K]3 years ago
8 0

Answer:

$45,000 revenue to be recorded

Explanation:

If the seller is purchasing the goods and service from customer at fair value of those goods, so will account for that purchase as separate transaction.

Computing overpayment as:

Overpayment = Amount paid - Fair value

where

Amount paid is $10,000

Fair value is $7,000

So,

Overpayment - $10,000 - $7,000

Overpayment = $3,000

Now,

Computing the Net revenue which should be recorded as:

Net revenue = Sale amount - Overpayment

where

Sale amount is $48,000

Overpayment is $3,000

So,

Net revenue = $48,000 - $3,000

Net revenue = $45,000

You might be interested in
A firm has actual sales in November of $1,000 and projected sales in December and January of $3,000 and $4,000, respectively. Th
Valentin [98]

Answer:

(B) $2,100

Explanation:

5 0
3 years ago
Read 2 more answers
Which of the following statements regarding supply chain customer service is most accurate?
IrinaVladis [17]

Answer:

d. Supply chains should consider the needs of consumers provided those needs are consistent with marketing strategies.

Explanation:

In order for supply chain customer service to be effective, it is necessary to focus on customer needs and these needs must be aligned with the company's marketing strategies.

In other words, each stage of the supply chain must operate in an integrated manner, so that each process is synergistic and so that the final consumer can receive the product at the right time, in the right quantity and in the right quality. Therefore, supply chain management will improve each step of the process, guaranteeing the quality of the processes, the reduction of time, the reduction of costs and waste and ensuring the continuous improvement of the process, which will make the product go through each channel effectively, generating value and strengthening the relationship between the company and the consumer.

5 0
3 years ago
You have just purchased a car and, to fund the purchase, you borrowed $27,500. If your monthly payments are $515.27 for the next
Naily [24]

Answer: APR of the loan is 2.48%

Explanation:

5 0
3 years ago
Read 2 more answers
You are given the following information on Parrothead Enterprises: Debt: 9,600 7.1 percent coupon bonds outstanding, with 24 yea
asambeis [7]
Ya know what the gym did you put for the first week in the short drive through it
7 0
3 years ago
Does anyone know what business stands for? I am a boy.
Verdich [7]

a person's regular occupation, profession, or trade.

6 0
3 years ago
Other questions:
  • The purchasing power of money and the price level vary: Group of answer choices inversely. directly during recessions, but inver
    7·1 answer
  • Priya is making a book cover with area of 28 square inches. Sapna is making a book cover with n area of 28 square centimeters. m
    8·1 answer
  • How do Government price ceilings and price floors affect the economy? Select all that apply.
    14·1 answer
  • Seymour owns 3 acres of beautiful waterfront property on a large inland lake. In his will, Seymour donates the land to the state
    11·1 answer
  • Explain the connection between career advancement and the Four drive theory.
    12·1 answer
  • Write any four advantages of living in a community<br><br>​
    8·1 answer
  • What do right-to-work laws do?
    6·1 answer
  • What is a benefit of obtaining a personal loan?
    10·1 answer
  • Inflation is a measure of how prices
    6·1 answer
  • Taraneh wants to create a tutoring center for high school students. She develops a precise statement of the rationale for her bu
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!