Answer:
The entries are as follows
To record estimated returns on Sales
Debit: Sales Refund Payable Account $131,400
Credit: Accounts Receivables $131,400
To record estimated Cost of Sales returns
Debit: Inventory Returns Estimated Account $77,700
Credit: Inventory on Sales on Returns $77,700
Explanation:
To derive the figure for Sales Refund payable for the year
6% of $2,190,000
= 
= $131,400
To derive the figure for Inventory cost on Sales Refund payable for the year
6% of $1,295,000
= 
= $77,700
Answer:
The reconciled balance is:
Explanation:
Cash 8900,15
Books
Cash receipts pending on bank -9821,55
Checks written 7986,05
Checks written not recorded -49,55
Banks
Bank service fee -48,1
Interest earned 33,1
Bank conciliation 7000,1
Bank account 7000,1
Answer:Yield to maturity is 9.59%; After tax cost of debt =7.672%
Explanation:
A) Yield to maturity ={ C + (FV-PV)/t} / {(FV +PV)/2}
Where C – Interest payment = $90
FV – Face value of the security
= $1000
PV – Present value/curent market value = $960
t – years it takes the security to reach maturity= 10 years
imputing the values and calculating,
yield to maturity ={ C + (FV-PV)/t} / {(FV +PV)/2}
= $90 + (1000-960)/10} / 1000 + 960 /2
$90 + 4= $94 /980= 0.0959
therefore Yield to maturity is 9.59%
B) After tax cost of debt = Yield To Maturity x (1 - tax rate)
=9.59% x (1-20%)= 9.59% x (1-0.2 )= 9.59% x 0.8 =
9.59 % x 80%=7.672%
D)the desire to get the most for their money.
Answer:
$85
Explanation:
Calculation for what the inventory of surgical supplies would be valued at
Net realizable value = $100 - $15
Net realizable value = $85
Therefore based on the above calculation the inventory of surgical supplies would be valued at $85
