Answer:
$13,725
Explanation:
The movement in the warranty payable account over a period is as a result of the warranty expense for the period and the warranty payments made during the period.
Given that the company estimate warranty expense at 4.5% of sales, the estimated warranty for the period is the expense recorded in the income statement. This is equivalent to
= 4.5% * $305,000
= $13,725
Answer:
B. A loan that is repaid in equal monthly payments for a specific period of time, usually several years.
C. A loan where you have to promise to give the bank your assets if you do not repay the loan.
Explanation:
A Consumer installment loan is also known as a closed end credit. It is a form of loan whereby the consumers are expected to pay back in a regular manner usually monthly over a period of time which could span between one to about forty years.
The loan is given based on how credit worthy the consumer is. Failure to pay back the loan after the stipulated time frame would result to the seizure of the consumer's property or assets by the lending institution. The lending institution could be a bank. A mortgage loan, and a car loan are examples of consumer installment loans.
Answer:
160
Explanation:
Reorder point is the inventory level at which new order are placed to prevent a down time due to stock out and and holding cost are also at the minimal level .
<u>Workings</u>
Annual demand = 8000
Ordering cost = $50
Holding cost = $20
Operating days = 250
Lead time =5 days
Re order point = Average daily usage * Average lead time
Average daily usage = 8000/250 = 32
Reorder point = 32*5 =160
