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professor190 [17]
3 years ago
6

A department store uses a perpetual inventory system. At year-end, it shows a balance in the merchandise inventory account of $2

million. Assuming that the inventory records have been maintained properly, a year-end physical inventory _________.
Business
1 answer:
defon3 years ago
5 0

Answer:

will probably indicate less than $2 million in merchandise on hand.

Explanation:

Perpetual inventory system is when information regarding quantity and availability in inventory of a business is continuously updated. Sale or purchase big inventory is recorded immediately with the use of computerised point of sale systems.

The department store uses a perpetual inventory system. At year-end, it shows a balance in the merchandise inventory account of $2 million. The physical inventory will probably be less than $2 million because it adjust its records to make the recorded inventory amount agree with the actual inventory on hand at end of year.

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On January 22, Muir Corporation issued for cash 20,000 shares of no-par common stock at $30. On February 14, Muir issued at par
Juli2301 [7.4K]

Answer:

Jan 22

Dr Cash 600,000

Cr Common stock 600,000

Feb 14

Dr Cash 150,000

Cr Preferred stock 150,000

Aug 30

Dr Cash 1,350,000

Cr Preferred stock 1,250,000

Cr Paid in capital excess of par preferred stock 100,000

Explanation:

Muir Corporation Journal entries

Date Accounts Debit Credit

Jan 22

Dr Cash (20,000*30) 600,000

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Feb 14

Dr Cash (3000*50) 150,000

Cr Preferred stock 150,000

Aug 30

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8 0
3 years ago
For a company with significant uncollectible​ receivables, the direct​ write-off method is unsuitable because​ ________. A. it u
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Answer:

The correctt answer is B. it violates the matching principle

Explanation:

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3 0
3 years ago
An insurance policy written after 1988 that fails to pass the seven-pay test is known as
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The answer to this question is a modified endowment contract. A modified endowment contract or MEC is a type of life insurance policy where in the policy/ insurance is being funded with more money or the insurance premium payment exceeds the amount allowed under the federal law. The modified endowment contracts are taxable.
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when the federal government's expenditures for a year are greater than its revenue for that year, the difference is known as wha
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Explanation:

A budget deficit arises when the governments spend more than it has collected.  The government 's main source of revenue is taxes and levies it imposes on businesses and individuals. Its expenses include salaries for public employees, social welfare, and expenditures on public goods and infrastructure development projects.

A budget deficit contrasts a budget surplus, which occurs when a government intends to spend less than it has collected. Budget deficits result in government borrowing from either the domestic or foreign markets.  A balanced budget is when the collected revenues match the planned expenditures.

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The basic difference between a good and a service is that a good:
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Answer:

The correct answer is letter "B": can be physically touched.

Explanation:

Goods are those <em>material </em>assets that satisfy consumers' needs. Services are also provided to fulfill individuals' wants but they are <em>intangible</em>, meaning even if goods can be rendered from one person to another, services cannot be touched or perceived with the senses. The creation of goods and services to cover different types of necessities is what drives countries' economies.

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