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
Natali [406]
3 years ago
11

On April 17, 2014, Naughton Ltd. received an order from a customer for a delivery to be made in May 2014. Naughton Ltd. does not

yet have the items ordered by the customer, but it expects to receive them shortly. The items will cost Naughton Ltd. $7,500 and the customer will pay $11,000 once the items are delivered. Which entry (if any) to be made on April 17, 2014?
Business
1 answer:
Sloan [31]3 years ago
8 0

Answer:

There is no entry to be made on April 17, 2014

Explanation:

Following The accrual principle - an accounting concept that requires accounting transactions to be recorded in the time period in which they actually occur, rather than the period in which the cash flows related to them occur or the transaction are received.

On April 17, 2014, Naughton Ltd. received an order from a customer for a delivery to be made in May 2014 and the delivery does not occur yet on that day. I should be occur in May 2014.

Therefore, there is no entry to be made on April 17, 2014. In May, when the company finish delivering, the entry would be made:

1. Debit Cash (or Accounts Receivable) $11,000

Credit Revenue $11,000

2. Debit Cost of goods sold  $7,500

Credit Cash $7,500

You might be interested in
Risk acceptance defines the quantity and nature of risk that organizations are willing to accept as they evaluate the trade-offs
NNADVOKAT [17]

Answer:

Tolerance

Explanation:

Risk tolerance: It is defined as level of risk that an organization is willing to take for completing any specific task. Evaluating the risk in the trade off between perfect security and unlimited accessibility as risk of security breach is still there instead of perfect security as there is unlimited accessibility, however, how much risk can be tolerated or accepted need to be evaluated and can be mitigated.

There are different technique been used to minimize the risk factors are:

  • Avoidance.
  • Reduction.
  • Sharing.
  • Retention.
5 0
3 years ago
Ken makes a monthly income of $3000 after taxes. Every month, he spends 40% of his income on clothing. How much money does Ken s
In-s [12.5K]
Take 40 over a 100 as a fraction and 3000 over 1 as a fraction and multiply them. 3000 multiply by 40 is =120000 and divide that by 100 would be 1200

$1200
 
7 0
3 years ago
Given some of the apparent problems with Wilkerson’s cost system, should executives abandon overhead assignment to products enti
Aneli [31]

Answer:

Current issues in the framework by regarding fabricating costs as a period cost  

Assembling overhead is evaluated bu increasing direct work with 300%. This estimation isn't exact and doesn't speak to how the genuine variable sub-costs that form the manufacturing overhead act for example machine related costs, arrangement work, getting and creation control, designing, bundling and sending. In spite of the fact that there could be a connection between the measure of direct work cost and the all out manufacturing overhead, this present strategy for estimation is dubious and ignores the real segments of manufacturing overhead.  

Advantage of Product Cost  

Increasingly exact impression of the inconstancy of the sources for example on the off chance that there are five factors, it is more precise than one.  

Advantage of Period Cost  

Treating manufacturing overhead as a period cost implies that it stays simpler to contrast Wilkerson's and a rival, given that contender likewise treats manufacturing overhead as a period cost for example it is simpler to analyze like-for-like

6 0
3 years ago
Crane Company reports: Cash provided by operating activities $ 310000 Cash used by investing activities 120000 Cash provided by
KengaRu [80]

Answer:

$437,000

Explanation:

We first, find the net cash flow for the current period, and then, add the cash balance for the period immediately before.

Net cash flow for current period:

Cash provided by operating activities $310,000

Cash used by investing activities ($120,000) - we substract this because the cash was "used", that is to say, it was spent.

Cash provided by financing activities $149,000

Net cash flow: $339,000

Ending cash balance = Net cash flow + beginning cash balance

                                   = $339,000 + 98,000

                                   = $437,000

8 0
3 years ago
Blake eats two bags of generic potato chips each day. Blake's hourly wage increases from $ 9 to $ 15 , and he decides to stop ea
Tasya [4]

Answer:

The income elasticity of demand for generic potato chips=-4.00

Explanation:

Elasticity of demand can be defined as a measure of how responsive the demand for a certain good is when the price of that good or service changes. The elasticity of demand is usually negative. A negative elasticity of demand implies that the demand of a good or service reduces with an increase in price. The elasticity of demand can be measured using different methods. The mid-point method will be used in this case. The mid-point method of calculating elasticity of demand is as shown;

E=%Q/%P

where;

E=elasticity of demand

%Q=percentage change in quantity demanded

%P=percentage change in the price

And;

%Q=[(Final quantity-Initial quantity)/{(Final quantity+Initial quantity)÷2}]×100

Final quantity=0

Initial quantity=2

replacing;

[(0-2)/{(0+2)÷2}]×100=(-2/1)×100=-200%

%P=[(Final price-Initial price)/{(Final price+initial price)÷2}]×100

%P=[(15-9)/{(15+9)÷2}]×100=(6/12)×100=50%

E=%Q/%P

replace for %Q and %P

E=-200%/50%

E=-4

The income elasticity of demand for generic potato chips=-4.00

5 0
3 years ago
Other questions:
  • A publisher of photography books finds that it is cost-effective to print 10,000 or more at a time. But a bookstore orders only
    15·1 answer
  • Bobaflex Corporation has ending inventory of $707,373 and cost of goods sold for the year just ended was $8,513,213. What is the
    10·1 answer
  • Which of the following is correct: A. The post-closing trial balance will ensure the accounting equation is balanced at the end
    11·1 answer
  • Franklin Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Un
    8·1 answer
  • Which of the following are the ways that a company can finance the purchase of assets? (You may select more than one answer. Sin
    5·1 answer
  • Crystal Charm Company makes handcrafted silver charms that attach to jewelry such as a necklace or bracelet. Each charm is adorn
    15·1 answer
  • A student believes that less than 50% of students at his college receive financial aid. A random sample of 120 students was take
    7·1 answer
  • Managerial accounting reports are a.prepared periodically only b.related to the entire business entity only c.prepared according
    5·1 answer
  • A government budget deficit affects the supply of loanable funds, rather than the demand for loanable funds, because a. in our m
    12·1 answer
  • Onslow Co. purchases a used machine for $192,000 cash on January 2 and readies it for use the next day at an $8,000 cost. On Jan
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!