Answer:
The journal entry should be:
Dr Merchandise Inventory account 50,000
Cr Retained Earnings account 50,000
Explanation:
Since Oscar's merchandise inventory was understated by $50,000 because of the previous inventory method (LIFO), when the new method, FIFO, starts to be used then the merchandise inventory must increase by $50,000 as well as retained earnings.
Merchandise inventory is an asset account and it increases, therefore it should be debited.
Retained earnings is an equity account and it increases, therefore it should be credited.
The optimistic approach considers the best possible payoff for each option alternative in a decision issue where more is better.
<h3>What kind of individual is an illustration of optimistic?</h3>
Someone who chooses to think that there is always tomorrow" is an example of such an optimist. They'll have more opportunities as a result of this. Additionally, they decide to emphasize what they already have, as in "that glass is half full."
<h3>Is having a positive outlook a talent? </h3>
A hopeful, upbeat perspective on the future, oneself, or the world around us is what is meant by optimism. It is an essential component of resilience, a inner fortitude that supports you in trying situations. Optimism is the ability to see, experience, and think favorably.
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Answer:The new machinery must be depreciated using the same method as the previously purchased Machinery.
Explanation:
This is in line with the consistent concept which states a company must be consistent in the application of accounting principles to his activities.
