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3 years ago

Eric Company has the following information:

Business

1 answer:

Pani-rosa [81]3 years ago

6 0

Answer:

The amount of net revenues for Eric Company is 780,000

Explanation:

Net revenue is the sales (or total revenue) of a company from which returns, discounts, and other items are subtracted from.

Net revenue is calculated by following formula:

Net Revenue = Gross Revenue – Directly Related Selling Expenses (These are: Sales Returns, Sales Discounts....)

Eric Company has the data: Total Revenues 860,000 , Sales Returns and Allowances 50,000 , Sales Discounts 30,000

Net revenues for Eric Company = 860,000 - (50,000 + 30,000) = 860,000 - 80,000 = 780,000

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Mrs. Eller's corporate employer has a cafeteria plan under which its employees can receive a $3,000 year-end Christmas bonus or

Alina [70]

Answer and Explanation:

a. The computation is shown below;

Cash bonus after tax is ($3,000 × (1 - 0.24) $2,280

And, non taxable fringe benefit is $2,300

So here he should use the nontaxable fringe benefit

b. Yes answer would be changed

Cash bonus after tax is ($3,000 × (1 - 0.12) $2,640

And, non taxable fringe benefit is $2,300

hence, the same is to be considered

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2 years ago

If we assume that both countries specialize according to their comparative advantage, then how do we find a terms of trade that

levacccp [35]

Answer:

The best way to find terms of trade that will ensure that two entities are in the best terms of trade will be to look at the opportunity costs of the various products they produce.

A high opportunity cost in one product relative to that of the other entity means the entity with the higher opportunity cost should be trading with the entity with the lower opportunity cost and vice versa.

For example, assume that an entity "A" produces both rice and beans whilst an entity "B" also produces rice and beans too.

If the opportunity cost to A of producing Beans is 300 bags of rice whilst the opportunity cost to B of producing Beans is 120 bags of rice, and the opportunity cost to A of producing rice is 180 bags of beans whilst it is 250 bags of beans to B, the principles of comparative advantage require that A should focus more on producing rice and purchase beans from B whilst B should focus more on producing beans and purchase rice from A.

Cheers!

4 0

3 years ago

Under the allowance method, bad debts expense is recorded with an adjustment at the end of each accounting period that debits th

Crank

Answer:

Dr. Allowance for Doubtful Accounts...1,200

Cr. Accounts Receivable....................................1,200

Explanation:

When a specific customer's account is identified as uncollectible, the journal entry to write off the account is:

A credit to Accounts Receivable (to remove the amount that will not be collected)

A debit to Allowance for Doubtful Accounts (to reduce the Allowance balance that was previously established)

Therefore the JOURNAL ENTRIES for the $1,200 uncollectible debt will be

Dr. Allowance for Doubtful Accounts...1,200

Cr. Accounts Receivable....................................1,200

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3 years ago

Accompanying the bank statement was a debit memorandum for an NSF check received from a customer. This item would require an adj

tamaranim1 [39]

Answer:

The correct answer is debit accounts receivable, credit cash.

Explanation:

Note debit is a receipt that a company sends to its client, in which it is notified that it has charged or debited a certain sum or value in its account, for the concept indicated in the same note. This document increases the value of the debt or account balance, whether due to an error in billing, interest for late payment, or any other circumstance that means an increase in the balance of an account.

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2 years ago

What is meant by assessment? Activities that occur between two or more businesses. Provides services for connecting network reso

stiks02 [169]

Answer:Documenting rules, procedures, and guidelines to be tested against a system.

Explanation:

Assessment means to analyzing someone or something in respect of its quality, quantity and other such characteristics. Generally, assessment is done by comparing the actual results with some predetermined criteria .

Assessment is done by firms to know whether there is a problem, where it is and how it can be solved so that future losses could be saved.

Hence from the above we can conclude that the correct option is C .

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2 years ago