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MrMuchimi
3 years ago
12

Concepts for Analysis 24-3 (Essay) Presented below are three independent situations.

Business
1 answer:
Helga [31]3 years ago
6 0

Answer:1. Make provision for warranty claims.

2. Disclosure of contingent liability

3. No cost should be recorded.

Explanation:

Warranty is an assurance made by firms to make good any agreed loss that is incurred by the customers in usage of goods and services whiting the period of the warranty. Since an estimation can be made based on firms history of sales a provision has to be made for possible warranty.

Since it's only probably that a loss will be Incurred by the firm by going into the contract and the financial statement has not been issue the firm should made a contingent liability disclosure in the report.

The self insurance is not a contract with a third party, in this vein no cost will be accrued until the loss is actually suffered.

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You are the manager of a theater. At present the theater charges the same admisssion price of $8 to all customers, regardless of
Goshia [24]

Answer:

Explanation:

Provided that the demand is inelastic, there would be an increment in revenue.

Total revenue is calculated as the quantity of a good sold multiplied by its price.

There is a close interrelation between price elasticity of demand and total revenue, in the sense that they deal with the same two variables - which are price and quantity.

If the product has an elastic demand, revenue can be increased by decreasing the price of the good. Q will increase at a greater rate, while  P will decrease,  thereby, increasing the total revenue.

If the product has an inelastic demand, then the prices of goods can be increased and sold slightly less of that item but a higher revenue must be obtained.

7 0
3 years ago
During the year ended December 31, 2018, Kelly’s Camera Shop had sales revenue of $180,000, of which $90,000 was on credit. At t
storchak [24]

Answer:

(a) On December 10, a customer balance of $1,400 from a prior year was determined to be uncollectible

Dr Sales Returns and Allowances $ 1,400  

Cr Accounts Receivable   $ 1,400

(b) On December 31, a decision was made to continue the accounting policy of basing estimated bad debt losses on 2 percent of credit sales for the year.

Dr Bad Debt Expense $ 752  

Cr Allowance for Uncollectible Accounts  $ 752

Explanation:

Initial Balance  

Dr Accounts Receivable   $ 12,000

Cr Allowance for Uncollectible Accounts  $ 500

Kelly’s Camera Shop had sales revenue, of which $60,000 was on credit  

Dr Accounts Receivable  $ 60,000  

Cr Sales  $ 60,000

Collections of accounts receivable during 2018 amounted to $58,000.  

Dr Cash $ 58,000  

Cr Accounts Receivable   $ 58,000

(a) On December 10, a customer balance of $1,400 from a prior year was

determined to be uncollectible, so it was written off.  

Dr Allowance for Uncollectible Accounts $ 1,400  

Cr Accounts Receivable   $ 1,400

(b) On December 31, a decision was made to continue the accounting policy of basing estimated bad debt losses on 2 percent of credit sales for the year.  

Dr Bad Debt Expense $ 752  

Cr Allowance for Uncollectible Accounts  $ 752

6 0
3 years ago
what are the documents required by department of trade and industry when registering for a private company
meriva

Social security for employee profiling, insurances, and other employee and company benefits

Business permit, so that your business is legal and has passed through the scrutiny of safety and reliability

<span>Tax identification  to ensure that in every profit you gain, you will be giving a part of it to the country to improve its services</span>
6 0
3 years ago
The present national accounting system does not reflect changes in:
Rama09 [41]
Umm I'd have to say c or d
7 0
3 years ago
The term____ refers to a market exchange that affects a third party who is outside or external to the exchange
amm1812
The term spillover refers to a market exchange that affects a third party who is outside or external to the exchange
4 0
3 years ago
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