Answer:
Credit inventory 1000 and debit COGS 1000
Explanation:
19*500=9500 <price it is recorded at currently
The rule requires lower cost - market vs. price. Since market cost is lower, you have to find out how much the ending inventory balance should be
17*500=8500
9500-8500=1000
The inventory booked should be lowered, thus requiring credit entry of 1000. Since it is a merchandise loss, it is counted towards cost of goods sold expense, thus debit
Answer:
<u>Management.</u>
Explanation:
The organizational management function corresponds to the set of functions related to the control, planning, coordination and application of principles at all organizational levels, using the best strategy of analysis of human and financial forces so that integrated form the set that will help the company to achieve organizational goals and objectives.
Being a leader is not an easy task, it takes experience and an attitude towards solving the needs and supervision of employees through an ethical and respectful posture, as well as having the tranquility to deal with different people, as well as the skills to integrate technical and social processes of the organization.
Answer:
The bad debt account will be debited with $3,250
Explanation:
This explains the principle of double entry. For every debit entry you will have a corresponding credit entry
In recognizing a risk (likely uncollectible debts) to Asset (account receivables) and Net income (overstated Revenue) the Allowance for doubtful debt Account will be credited with a provision (1% which comes to $3,250 as in the case with our question) to draw down the value of our receivables to a more sensible number and our Bad debt expense account takes the debit, to reflect a more defendable Net income to our shareholders
Answer:
Decrease of net cash flow
Explanation:
Underthe indirect method, we calculate the cash flow based on the change in working capital:
The inventory, which is an asset will be purchased with cash or cash equivalent. Therefore, an increase on inventory produce a decrease of net cash flow.
If the inventory is purchased on account then, It will increase account payable, which represent an increase on the net cash flow. This generates a net effect of zero, 100,000 for account payable - 100,000 for inventory.
Which is what happens when purchase on account are made.
However, here we are asked for an increase on inventory only. We should simply state that this will represent a decrease in the cash flow for 100,000.
