Answer:
$55,500
Explanation:
The computation of the net realizable value after the write off entry is show below:
The credit balance in allowance with terms to bad debts is
= $4,500 - $4,000
= $500
Now the net realizable value is
= ($60,000 - $4,000) - ($4,500 - $4,000)
= $56,000 - $500
= $55,500
Hence, the same is to be considered
Answer: ADD BELIEF STRATEGY
Explanation:In the given case Pepsi used the add beliefs strategy to change the mindset of the customers in the market. The add belief strategy in marketing is focused on increasing the confidence of the customer in the product.
By adding the freshness date on the cans, Pepsi was sending a message that they care for the health of the customers, thus, winning their confidence.
Answer:
No Journal entries will be required in either instance. But a note to the financial statement would be appropriate in explaining the declining stake in Marmon Inc.
Explanation:
A. Total share valuation was $1,000,000. ($900,000 + $110,000) which is made up of Albuquerque's holdings and the non controlling interests. This is equivalent holding of 89% by Albuquerque.
*the investment would have been recognized at cost to Albuquerque at $900,000.
But when Marmon sold additional 10,000 shares the interest reduces to 63%
*This wouldn't necessitate any journal entry by Albuquerque as a result of the additional issues of shares but the % stake in Marmon would show to have reduced as a note in its financial records.
And when a further 2,000 was issued Albuquerque stake drops to 61%
* Again this wouldn't necessitate any journal entry by Albuquerque as a result of the additional issues of shares but the % stake in Marmon would show to have reduced as a note in its financial records.
Answer:
The Expected Awareness level for the next year will be 58%
Explanation:
In order to calculate the Expected Awareness level, first we have to calculate opening awareness level using the following formula:
Opening awareness level=Closing level−Decrease in awareness per year
=80%−(1/3×80%)
=80%−26.4%
=53.6%
After having calculated the Opening awareness level we can calculate the Expected Awareness level for next year with the following formula:
Expected Awareness level=Opening awareness level+Increase in level
=53.6%+5%
=58%