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zzz [600]
3 years ago
15

On October 5, Cullumber Company buys merchandise on account from Marin Company. The selling price of the goods is $6,650, and th

e cost to Marin Company is $3,010. On October 8, Cullumber returns defective goods with a selling price of $840 and a scrap value of $430. Record the transactions on the books of Marin Company, assuming a perpetual approach.
Business
1 answer:
andreev551 [17]3 years ago
8 0

Answer:

October 5 entries

Debit Accounts receivable  $6,650

Credit Sales Revenue                     $6,650

To record sales

Debit Cost of goods sold       $3,010

Credit Inventory            $3,010

To record the cost of sales

October 8 entries

Debit Sales return   $840

Credit Accounts receivable  $840

To record sales reversal due to sales return

Debit Inventory   $430

Credit Cost of goods sold   $430

Explanation:

The perpetual inventory system is the one that ensures that the book balance for inventory is adjusted for every purchase, sale or return of inventory.

When inventory is sold on account, the entries required are debit accounts receivable and credit revenue then Debit cost of goods sold and credit inventory.

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Becky’s daughter was in the sixth grade and growing very fast. In early fall, her daughter tried on her soccer cleats from the s
olga nikolaevna [1]

Answer:

Purchase decision process

Explanation:

A purchase decision process is defined as the thought process that goes into buying a certain product. This thought process include the buyer identifying a need, creating options, seeing different brands and then finally buying the product.

Purchase decision could be either minor or major. Purchasing things like tea, toothpaste, etc require minor decision processes while buying a house or piece of land involves major decision processes.

As in the question, Becky now has to under purchase decision process as to buying soccer cleats for her daughter. This decision will involve buying a brand that won't shrink as a result of weather changes or wear out easily, etc

I hope this helps.

5 0
3 years ago
For each of the following independent cases, use FIFO costing to determine the information requested. Required: a. In the beginn
Ludmilka [50]

Answer:

$35,000

Explanation:

Units started and completed means that out of the units completed and transferred, how many were started during the period. This figure is calculated in physical terms only. So there is no need to express any units in their equivalents.

So, this gives us an idea of how to calculate this :

Units started and completed = Units Completed and Transferred - Units in Beginning Work in Process

therefore,

Units started and completed = 40,000 units - 5,000 units = $35,000

3 0
2 years ago
One of the three economic questions deals with deciding what goods and services should be produced. what the costs of production
abruzzese [7]

Answer:

The correct answer is What Goods and Services should be produced.

Explanation:

The problem ‘what to produce’ can be divided into two related questions. First, which goods are to be produced and which not; and second, in what quantities those goods, which the economy has decided to produce, are to be produced. If productive resources were unlimited we could produce as many numbers of goods as we liked and, therefore, the question “What goods to be produced and what not” would not have arisen. But because resources are in fact scarce relative to human wants, an economy must choose among different alternative collections of goods and services that it should produce.

If the Society decides to produce particular goods in a larger quantity, it will have to withdraw resources from the production of some other goods. Further, an economy has to decide how much resources should be allocated for the production of consumer goods and how much for capital goods. In other words, an economy has to decide the respective quantities of consumer goods and capital goods to be produced.

The choice between consumer goods and capital goods involves the choice between the present and the future. If the society decides to produce more capital goods, some resources will have to be taken away from the production of consumer goods and. therefore, the production of consumer goods would have to be cut down. But greater amount of capital goods would make possible the production of larger quantities of consumer goods in the future. Thus, we see that some current consumption has to be sacrificed for the sake of more consumption in the future.

6 0
3 years ago
You were appointed the manager of Drive Systems Division (DSD) at Tunes2Go, a manufacturer of portable music devices using the l
Volgvan

Answer:

Answer is explained below.

Explanation:

A.

Assume the new testing equipment is rented and installed on December 31 and impact on this year's divisional operating profit

Loss from equipment write-off

Sales revenue 9,820,000    

Operating costs:    

Variable -1,190,000    

Fixed (cash expenditures) -4,390,000    

Equipment depreciation -960,000    

Other depreciation -710,000    

Loss from equipment write-off -5,040,000    

Operating profit (loss) before taxes

Operating profit (loss) before taxes=-$2,470,000(Loss)

Loss from equipment write-off= Value of equipment -Equipment Depreciation =$6,000,000-$960,000=$5,040,000

B.

Assume the new testing equipment is rented and installed on December 31. and the impact on next year's divisional operating profit

Sales revenue 9,820,000+690,900=10,510,900 Add 7% of 9,820,000=690,900  

Operating costs:    

Equipment rental -1,370,000    

Variable -1,190,000    

Fixed cash expenditures -4,390,000+263,400=-4,126,600 6%of 4,390,000=263400  

Equipment depreciation -960,000    

Other depreciation -710,000    

Operating profit (loss) before taxes 2,154,300(Profit)  

C.

Would you rent the new equipment - Yes Because it is benificial for Company as it is earning profit of $2,154,300

3 0
3 years ago
Water World sells wake boards and water skis and pays sales commissions based on product sales price. The wake boards sell for a
victus00 [196]

Answer:

Salespersons will be motivated to sell more wake boards as they will create a higher commission per unit for them.

The company would rather see more skis sold as it creates the higher profit per unit for the company.

Explanation:

As from the company's perspective the sales of skies shall be more, as it offers higher revenue per unit, in form of higher contribution than that of boards per unit, the company estimates to sell more of these units.

Further, as the sales commission is based on the price of article sold, and boards have higher selling price,

As sales commission is to be earned by individual acting as agent will sell more units of boards to get higher commission.

3 0
3 years ago
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