Answer:
They collected $88,000
Explanation:
We have an initial balance of accounts receivable of $ 25,000. To this balance, we must add the revenue of the year a total of $ 119,000. By making this sum we get the result of $ 114,000, this would be the total of our accounts receivable totalized.
Subsequently, to this value we subtract the final balance of accounts receivable that was $ 56,000, to obtain a result of $ 88,000. In other words, $ 88,000 would be the amount collected from accounts receivable during the year.
The answer is "<span>economic risks".
</span><span><span>
</span><span>Economic risk</span><span> is the possibility
that macroeconomic conditions like trade rates, government direction, or
political security will influence a venture, typically one in a remote nation.
Beside the business hazard related with making the plant profitable, the
semi-conductor company is open to economic risk.</span></span>
Answer:
a. Michael’s personal assets are not recorded on the Apartment Exchange’s balance sheet. ECONOMIC ENTITY PRINCIPLE, the owner's personal assets are not part of his business assets and therefore should be reported separately.
b. The Apartment Exchange records furniture at its cost of $9,000, not its market value of $13,000. HISTORIC COST PRINCIPLE, assets must be recorded at their purchase price.
c. The Apartment Exchange reports its financial statements in U.S. dollars. MONETARY UNIT PRINCIPLE, businesses must record their transactions in a unit of currency (US dollar).
d. Michael expects the Apartment Exchange to remain in operation for the foreseeable future. GOING CONCERN PRINCIPLE, the business will remain in operation for the foreseeable future.
Answer:
No impairment loss would be reported
Explanation:
The computation is shown below;
Impairment loss = carrying value - recoverable amount
Where,
The recoverable amount would be the higher amount of fair market value and value in use
So the recoverable amount would be $2,545,000
Now the impairment loss is
= $2,500,000 - $2,545,000
= -$45,000
Since the impairment loss comes in negative so no impairment would be recorded
Answer:
What unit values should Herman use for each of its products when applying the lower of cost or net realizable value (LCNRV) rule to ending inventory?
- Product 1: $26 (cost)
- Product 2: $86 (NRV)
- Product 3: $56 (cost)
Explanation:
Product 1 Product 2 Product 3
Cost $26 $96 $56
Selling price $58 $138 $88
Costs to sell $6 $52 $16
net realizable value $52 $86 $72
which is lower? $26 (cost) $86 (NRV) $56 (cost)
the net realizable value = selling price minus any costs associated to the sales process
