Answer: $0.60
Price per loaf: $2
Discount given for its bread at the end of the day= 70%
Solution:
Salvage value<span> is the estimated resale value of a product at the end of its useful life. Since the
useful life of the loaf is 1 day and it was sold at the end of the day at 70%
off, the salvage value is </span>
$2 × (1 - 70%)
<span>$0.60.</span>
Answer:
d. $1,470,000
Explanation:
The computation of the cash realizable value of the accounts receivable is shown below:
= Ending balance of accounts receivable - credit balance of uncollectible amount
= $1,600,000 - $1,30,000
= $1,470,000
For finding out the cash realizable value, we deduct the credit balance of uncollectible amount from the ending balance of accounts receivable
The answer is D. a debit to accounts payable and a credit to notes payable. This is because Cory issued a note to his creditor as a promise that he will pay the creditor. With this, he will be gaining a Notes Payable, or a promissory note stating that he will pay, and will be losing an Accounts Payable. So according to the rules of accounting, if a liability is debited, then it will be lessened from the books of the business. If a liability is credited, however, then it will be added to the records of the business.
