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exis [7]
3 years ago
6

Skysong Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2021 at

a cost of $1,032,100. At December 31, 2020, the raw materials to be purchased have a market value of $984,100. In 2021, Skysong paid $1,032,100 to obtain the raw materials which were worth $984,100. Prepare the entry to record the purchase.
Business
1 answer:
k0ka [10]3 years ago
6 0

Answer:Skysong journal $

Date

December 2020

Raw material Dr 984,100

Loss on raw material 48,000

Supplier Cr 1,032,100

Narration. recognition of raw materials purchased at agreed value.

2021

Supplier Dr. 1,032,100

Bank Cr. 1,032,100

Narration. Payment for raw materials purchased at agreed value.

Explanation:

The raw materials needs to be paid for at the agreed value not withstand ing the fall in value. However stock are to be recognized at cost or net realisable value which ever is less and since the market value of the stock has dropped this has to be recognized as a loss in the income statement to avoid the stock been over value.

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aleksandr82 [10.1K]

With the given information, I assume that Holden works in financial services, probably in the sales side of the company. This could be investments or a commercial bank.

8 0
3 years ago
An uncle executed a warranty deed granting a parcel of land to his nephew. The uncle placed the deed in his bedroom closet and t
solniwko [45]

Answer:

No, the uncle's action to the buyer was not effective.

Explanation:

His uncle executed a deed of guarantee that gave the nephew a plot of land and did not undo the action. So the nephew is the natural heir, as the statute of the jurisdiction in which the land is located provides that no transfer or mortgage of real estate will be valid against subsequent buyers for value and without notice whose transfer is first registered, from according to the law.

6 0
3 years ago
A commercial cleaning company spends an average of $500 per year, per customer, in supplies, wages, and account maintenance. An
Sonbull [250]

Answer:

$1,250

Explanation:

Calculation for what is the best estimate for the lifetime value of an average customer using the simplified customer lifetime value (CLV) equation

Using this formula

Customer lifetime value (CLV) = r / (1 + i - r)

Let plug in the formula for

Customer lifetime value (CLV) = 0.8 / (1 + 0.12 - 0.8)

Customer lifetime value (CLV) = 2.5

Customer lifetime value (CLV) =($1,000-$5,00)× 2.5

Customer lifetime value (CLV) = $500 x 2.5

Customer lifetime value (CLV) = $1,250

Therefore the best estimate for the lifetime value of an average customer using the simplified customer lifetime value (CLV) equation will be $1,250

5 0
3 years ago
Ellen is a manager who helps develop sales promotions, targets customers for upselling, and searches for potential new customers
Vinvika [58]

Answer:

Letter B is correct. <u><em>Sales budget.</em></u>

Explanation:

The sales budget is characterized by a company's sales expectations for a given budget period.

Organizations typically present the sales budget in monthly or quarterly format, with relevant information coming from a variety of sources. The calculation is made according to the number of units sold in the first line, the expected average price in the second line and the total sales in the third line. It is important to remember that when there are marketing promotions there may be a unit price adjustment that must be specified in the sales budget.

So a well-crafted sales budget ensures the quality of offering the right price on the right product and quantity at the right time and place. For this is one of the essential steps for control and success of an organization, as it relates to the marketability of purchasing consumer goods and services.

4 0
3 years ago
Under rent control, bribery is a potential mechanism to:________
Georgia [21]

Answer:

A). bring the total price of an apartment (including the bribe) closer to the equilibrium price.

Explanation:

Rent control can be regarded as a program set up by the government which control the limit of amount that can be demanded by landlords for leasing out a home as well as renewal of a lease. The law that govern rent control are been enacted by municipalities, and it's a way to make lower-income residents have an affordable living cost. It should be noted that Under rent control, bribery is a potential mechanism to bring the total price of an apartment (including the bribe) closer to the equilibrium price.

7 0
3 years ago
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