1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
wel
3 years ago
8

Eugene Co. has inventory it purchased for $6,000. It sells the inventory to a customer for $10,000, including installation. Inst

allation sold separately costs $1,000 and the inventory sold separately costs $10,000. What amount of Sales Revenue is recognized by Eugene when delivery of the inventory has been made to the customer, but the installation has not been completed?
Business
2 answers:
ahrayia [7]3 years ago
8 0

Answer: $9090.91

Explanation:

Guven the following ;

Sales price of Inventory = $10,000

Installation cost = $1000

Inventory and installation = $10,000

Calculate : Amount of sales revenue recognized by Eugene when delivery of inventory has been made to customer but installation hasn't been completed.

That is, what is the sales price of the inventory alone at that price without adding the installation fee.

Total cost price if inventory and installation were charged separately

Price = $(10,000 + 1,000) = $11,000

Sale revenue =( price when sold together) ÷ (price when sold separately) × sales price of inventory

Sales revenue = ($10,000 ÷ $11,000) × $10,000 = 0.909090 × $10,000 = 9090.91

Scrat [10]3 years ago
5 0

Answer:

The necessary entries would be:

Dr Accounts receivable             $11,000

Cr Sales revenue                                     $10,000

Cr Deferred revenue                                $,1000

Explanation:

Revenue should be recognized in the books of account where the selling party has performed its obligation of delivering goods or rendering services as contained in the sales contract.

This contract contains provision of goods -inventory that have been delivered and rendering of services-installation that is in progress, as a result the revenue relating to the former is due to be recognized now while the  later would be recognized when is installation is concluded.

You might be interested in
Akika Corporation started as a small firm and has grown substantially in the past decade. Its interests span from electronics to
lakkis [162]

Answer:

a. Unity of direction

Explanation:

Unity of direction: In this principle, the direction of work is given by the higher authority with a view to achieving the organizational objective.  

Division of work: In this principle, the work is divided between many subordinates/ employees, so that the task should be done in proper time and in an efficient & effective manner.

Scalar chain: This scalar chain represents the rank from high authority to low authority in a straight line so that proper communication/ cooperation can be done without any misunderstanding.  

Unity of command: In this principle, the employees are responsible for only one person/ one supervisor/ one commander.  

In the given scenario, the unity of direction principle applies as the board of directors wants to establish an independent business so that each domain objective can be achieved so that it becomes to accomplish the organizational objective.  

6 0
3 years ago
Freya plans to invest $3,200 a year for 25 years starting at the end of this year. How much will this investment be worth at the
tekilochka [14]

Answer:

$240,885.11

Explanation:

The formula to be used is = annual payment x annuity factor

Annuity factor = {[(1+r) ^N ] - 1} / r

R = interest rate = 8.2 percent

N = number of years = 25

[(1.082^25) - 1 ] / 0.082 = 75.276598

75.276598 x $3,200 = $240,885.11

I hope my answer helps you

6 0
3 years ago
If the dividend yield for year 1 is expected to be 5% based on a stock price of $25, what will the year 4 dividend be if dividen
MariettaO [177]

Answer:

$1.33

Explanation:

Calculation for what will the year 4 dividend be

Using this formula

Year 4 dividend=[(Expected dividend yield×Stock price)×(1+Constant rate )]

Let plug in the formula

Year 4 dividend = [(.05 × $25) × (1+0.06)]

Year 4 dividend=(.05 × $25) × 1.06

Year 4 dividend=1.25×1.06

Year 4 dividend= $1.33

Therefore what will the year 4 dividend be if dividends grow annually at a constant rate of 6% is $1.33

6 0
2 years ago
Much of the supply of ________________ is from china and india where chemical manufacturers have less government oversight.
Eva8 [605]
The answer in the space provided is 'coming from'. It is because the countries like China and India has government which has less over sight which enables them to transport goods from chemical manufacturers because of their government that are not that strict in terms of transporting goods to other countries compared to others countries that have more over sight and are more strict.
7 0
3 years ago
In his search for a franchised business that would satisfy his passion for the outdoors and also earn him a decent living, Asher
chubhunter [2.5K]

In business we refer to this obligation as a<u> </u><u>royalty</u>.

<u>Explanation:</u>

A royalty is a charge paid by one person, such as the licensee or franchisee, to somebody else who owns a specific asset such as the rights holder or franchise owner, for the ability to utilize that asset on a continuing basis.This is usually accepted as a percentage of total or total profit obtained through the use of an product or a certain value per unit sold from an item of this kind, although there are still other forms and measures of revenue.

For an illustration, the royalty value for having its e-copy or printing a book like a novel, for selling internationally ranges from 20 to 30% of the overall value of retail selling that the publisher or distributor receives. The fee is paid by them and as with all music royalties, refers to the arrangement (license) between both the writer and the publisher or distributor.

7 0
3 years ago
Other questions:
  • What is important to know about yourself when making a career choice?
    10·1 answer
  • What are used to organize text and are identified by the bullet style , indentation, and the size of the text in power point?
    7·1 answer
  • Consider Derek's budget information: materials to be used totals $62,100; direct labor totals $198,200; factory overhead totals
    15·1 answer
  • When Keisha started her new job, she went through ______ to help her transition and fit smoothly into the job and organization.
    8·1 answer
  • Employees who are paid a portion of the profit from the sale of a product or service are paid on a(n).
    12·1 answer
  • Please help! The marginal revenue product of the second worker is
    10·1 answer
  • $5000 is put into an empty savings account with a nominal interest rate of 5%. No other contributions are made to the account. w
    10·1 answer
  • A company excludes from the current assets section, the amount of cash restricted for purposes other than payment of current obl
    14·1 answer
  • What are the OSHA guidelines for reporting injuries, illnesses, and fatalities?
    6·1 answer
  • Soul is a music genre that evolved from the songs made out of loneliness by​
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!