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Natalija [7]
3 years ago
11

Kilroy Corporation provides services to a customer for $1,000. The customer complained that there was a slight defect in the ser

vice. Kilroy granted the customer a $50 credit. Kilroy will record this adjustment to the sales price with a
Business
1 answer:
nordsb [41]3 years ago
8 0

Answer:

debit to Sales allowance of $50

Explanation:

When some defect in a product is revealed or notified by the buyer, the seller usually grants the customer an allowance which is termed as sales allowance.

It is usually allowed when the customer agrees to keep the product instead of returning the defective product which would constitute sales returns.

Following journal entry is recorded for recording sales allowance

Sales Allowance A/C                                     Dr. $ 50

    To Accounts Receivable                                          $50

(Being allowance for defects recorded)

Sales allowance is deducted from gross sales before the customer makes payment.

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FedEx is the world's leading express-distribution company. In addition to the world's largest fleet of all cargo aircraft, the c
andriy [413]

Answer:

Journal entries

Explanation:

Before passing the journal entries, first we have to determine the book value of truck which is

= Cost of delivery truck - accumulated depreciation

= $56,000 - $41,300

=  $14,700

Now the journal entries are as follows

a. Cash Dr $14,700

Accumulate depreciation $41,300

      To Delivery truck $56,000

(Being the disposal of the truck is recorded)

b)  Cash Dr $16,400

Accumulate depreciation $41,300

      To Delivery truck $56,000

       To Gain on sale $1,700

(Being the disposal of the truck is recorded)

c) Cash Dr $12,900

Accumulate depreciation $41,300

Loss on sale $1,800

      To Delivery truck $56,000

(Being the disposal of the truck is recorded)        

4 0
3 years ago
Rudy's, Inc. and Blackstone, Inc. are all-equity firms. Rudy's has 1,500 shares outstanding at a market price of $22 a share. Bl
aleksandr82 [10.1K]

Answer:

Merger premium per share is equal to $2

Explanation:

Step 1. Given information.

  • 1500 shares outstanding
  • market price of 22
  • Blackstone has 2.500 shares
  • Outstanding price 38
  • Blackstone acquire Rudy's for $36.000

Step 2. Formulas needed to solve the exercise.

Merger premium per share = (Blackstone acquire Rudy's /shares outstanding) - market price

Step 3. Calculation.

Merger premium per share = ($36,000/1,500) - $22 = $2

Step 4. Solution.

Merger premium per share is equal to $2

8 0
3 years ago
Key performance indicators are the metrics a company uses to evaluate progress toward critical success factors. Which of the bel
Lemur [1.5K]

Answer:

Answer is C

Explanation:

Key performance indicators are sets of quantifiable measures used to evaluate how effectively an organization is achieving its key organizational objectives.

The keyword here is "quantifiable".

Therefore, recording the percentage of help desk calls answered in the first minute helps to know just how effective the company is probably helping its customers have great experience or easy usage of its products or services by the number of customers calls answered to, or how effective the customer service is.

3 0
3 years ago
Why is a high quality bond typically considered a lower risk investment than a stock
vladimir2022 [97]
The answer is in each term's definition. bonds are less risky no matter what the quality. Stocks may earn bigger profits, but more of a gamble.
3 0
3 years ago
Explain how the Federal Reserve Board can increase or decrease the money supply using each of the following tools: reserve requi
Alex17521 [72]

Answer:

Reserve requirements – Reserve requirement increases to decrease the money supply or vice versa.

Open-market activities – the Fed sell the securities to reduce money supply or purchase it to increase the money supply.

Discount rates – Decrease the discount rate to increase the money supply or vice versa.

Explanation:

The Federal Reserve increases or decreases the money supply by using various tools. So in the case of the reserve requirement, the bank increases the percentage of reserve requirement if the Fed wants to decrease the money supply and to increase the money supply it reduces the reserve requirements. In the case of open market operations, the Fed sells securities and bonds in the market in order to reduce the supply of money or to decrease the supply of money it buys the securities from the market.

In the case of a discount rate, the Fed reduces the discount rate to increase the money supply because reducing the discount rate will induce the banks to give more loans. But to decrease the money supply, the Fed increases the discount rate because an increase in the discount rate reduces the ability of banks to give loans.

6 0
3 years ago
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