Answer:
a. $1,375
b. $1,240
Explanation:
FIFO method
FIFO assumes that the inventory to arrive first will be sold first. Inventory values depend on earlier purchases
Inventory = 185 x $5 + 75 x $6
= $1,375
LIFO method
LIFO assumes that the inventory to arrive last will be sold first. Inventory values depend on recent purchases
Inventory = 130 x $7 + 55 x $6
= $1,240
The allowance for doubtful accounts credited, instead of accounts receivable when recording the adjusting entry for bad debts Because accounts receivable is made up of numerous client accounts, it cannot be credited unless it is known which particular customer will not pay.
The provision for questionable accounts is referred to as a "counter asset" since it reduces the value of an asset, in this example, the accounts receivable. The compensation, often known as a doubtful account, is management's projection of the amount of accounts receivable that customers will not pay. Let's assume, using the aforementioned example, that on June 30 a business reports an accounts receivable debit balance of $1,000,000. The business predicts that $50,000 will not be converted into cash and expects some consumers won't be able to pay the full amount.
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Answer:
The annuity will cost him $963,212.95.-
Explanation:
Giving the following information:
Cash flow= $75,000
Interest rate= 0.0525
n= 20
First, we need to calculate the final value. We will use the following formula:
FV= {A*[(1+i)^n-1]}/i + {[A*(1+i)^n]-A}
A= annual cash flow
FV= {75,000*[(1.0525^20) - 1]/0.0525} + {[75,000*(1.0525^20)] - 75,000}
FV= 2,546,491.88 + 133,690.82= $2,680,182.70
Now, the present value:
PV= FV/(1+i)^n
PV= 2,680,182.70/(1.0525^20)
PV= $963,212.95
The <u>consumer service sector</u> dominates the market. The consumer service sector is all services that are geared toward customers and not businesses/governments. Examples are law firms, hospitals, accounting groups, cleaning services, etc. There are literally millions of possibilities, but any business that provides a service to the general public would be an example.
Answer:
y=-107 x+1,600, where y is the value of the refrigerator in x years, and x is the number of years.
Explanation:
Straight line depreciation is a method of asset valuation where the fixed asset is assumed to undergo constant depreciation per unit time. This means that the change in value during a given period is constant, where if you plot a value of asset value on the vertical axis against time, x in years you get a linear relationship thus the name straight-line depreciation.
The depreciation of the refrigerator in our case can be expressed as;
{(I-F)/x}=k
where;
I=initial value of refrigerator
F=final value of refrigerator
x=time interval
k=constant of proportionality
{(Initial value-final value)/time interval}=K
In our case;
I=1,600
F=0
x=15 years
replacing;
{(1,600-0)/15}=k
k=1,600/15=107
Express the equation where;
Initial value=1,600
value after x years=y
k=107
time=x
replacing;
(1,600-y)/x=107
1,600-y=107 x
y=-107 x+1,600
The formula is;
y=-107 x+1,600, where y is the value of the refrigerator in x years, and x is the number of years.
