When using the specific identification inventory method, the cost of goods sold equals the "revenues from the goods sold."
This is because the specific identification inventory method calculates each unit of n item in an inventory from when it enters the inventory until it leaves it.
The specific identification inventory method is used by many industries such as automobiles, furniture, jewelry, etc.
This method is mostly used when each unit of items can be specified easily, either through serial number, stamped receipt date, or other means of identification.
Hence, in this case, it is concluded that the specific identification inventory method is a good method to use in certain industries.
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Answer:
The interest on notes is calculated as follows
Interest payable = Face value of bonds * Interest rate * (Time of maturity / 12 months)
= $695,000 * 6% * 9/12
=$31,275
Cullumber company will pay the face value of the notes as the notes are payable at par, along with interest rate of 6% for the period of 9 months. This will result in outflow of cash, thereby crediting cash account. The liability on account of notes payable and interest payable will be settles, thereby debiting the payable account
General Entry
Date Account Title and Explanation Debit Credit
30 Sep. Notes payable $695,000
Interest payable $31,275
Cash $726,275
(To record the amount to be paid at maturity)
Answer:
a.$ 2,367.36
b.$ 3,105.85
c.$ 3,642.48
Explanation:
The future value formula applicable in all the three cases is stated thus:
FV=PV*(1+r)^n
PV is the amount today which is $1000 in all cases
r is the rate of interest (i.e 9%,12% and 9%)
n is the time the amount is invested( i.e 10,10 and 15 years)
FV=1,000*(1+9%)^10=$ 2,367.36
FV=1000*(1+12%)^10=$ 3,105.85
FV=1000*(1+9%)^15=$ 3,642.48
Answer:
Selective distortion
Explanation:
Selective distortion is the phenomenon where people interprete information based on their previous beliefs. This occurrence makes it difficult for such people to be influenced to make a purchase through advertisements.
This challenge to marketing also applies to selective attention and selective retention.
In this instance Bob reads a circular from the Department of Human Health and Safety recommending lower salt intake to prevent health problems. Because his grandmother still adds salt and remains healthy, Bob discards this information as being untrue.
