Answer:
Annual average inventory in days (no of times) = 1.5 times
Explanation:
<em>Annual inventory turn over is the average length of time it takes for inventor to be sold and replaced.</em>
<em>Average inventory turnover = average inventory/ cost of sold × 365</em>
<em>Average inventory turnover (in No of times) = C</em>ost of sold sold /average inventory
Cost of goods sold
= (1000/2000) × 60 million
= $30 million
Closing Inventory = $20 million
Annual average inventory
= $20/ 30 × 365 days
= 243.days
Annual average inventory
= cost of sold sold /average inventory
=30/20
= 1.5 times
Annual average inventory in days = 243.days
Annual average inventory in days (no of times) = 1.5 times
Answer:
Book value 2020= $18,000
Explanation:
Giving the following information:
Purchasing price= $55,000
Residual value= $5,000
Useful life= 5 years
First, we need to determine the depreciation expense for 2018 and 2019. We will use the following formula:
Annual depreciation= 2*[(book value)/estimated life (years)]
2018= 2*[(55,000 - 5,000)/5]= 20,000
2019= 2*[(50,000 - 20,000)/5]= 12,000
Book value 2020= 30,000 - 12,000
Book value 2020= $18,000
Answer:
Expenditures of $12,000 and a $12,000 prepaid asset
Explanation:
Since only half of the policy has been consumed (or accrued), then half of the premium must debited to expenditures, which is similar to debiting insurance expenses on a private company. Since half of the prepaid insurance asset has been used during this year, the account must be reduced by crediting it (same as recording for a private business).
Answer:
S/n Accounts title Debit Credit
a. Bad Debt expenses $2,655
Allowance for Doubtful debts $2,655
((132,500*5%)-3,970)
(Being bad debt expense recorded)
b. Bad Debt expenses $8,255
Allowance for Doubtful debts $8,255
{(132,500*5%)+1,630]
(Being bad debt expense recorded)
