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lozanna [386]
3 years ago
9

Robyn's Retail had 500 units of inventory on hand at the end of the year. These were recorded at a cost of $19 each using the la

st-in, first-out (LIFO) method. The current replacement cost is $17 per unit. The selling price charged by Robyn's Retail for each finished product is $27. In order to record the adjusting entry needed under the lower-of-cost-or-market rule, the Merchandise Inventory will be ________. Group of answer choices debited by $8,500 credited by $8,500 debited by $1,000 credited by $1,000
Business
1 answer:
podryga [215]3 years ago
8 0

Answer:

Credit inventory 1000 and debit COGS 1000

Explanation:

19*500=9500 <price it is recorded at currently

The rule requires lower cost - market vs. price. Since market cost is lower, you  have to find out how much the ending inventory balance should be

17*500=8500

9500-8500=1000

The inventory booked should be lowered, thus requiring credit entry of 1000. Since it is a merchandise loss, it is counted towards cost of goods sold expense, thus debit

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Everything that consumers evaluate when deciding whether to buy a good or service is called the
Hunter-Best [27]
Everything that consumers evaluate when deciding whether to buy a good or service is called the total product offer. Before making a decision to buy a product, a consumer will evaluate everything about the product from a need to a want, price, design, benefits you know it. When they have finished evaluating it, they make a decision whether or not they want to purchase the product or service. 
5 0
3 years ago
Vaughn Manufacturing unadjusted trial balance includes the following balances (assume normal balances): • Accounts Receivable $1
Andru [333]

Answer:

$33,400

Explanation:

Given that,

Accounts Receivable = $1,130,000

Allowances for Doubtful Accounts = $23,100

Estimated bad debts:

= 5% of outstanding receivables

= 0.05 × $1,130,000

= $56,500

We simply deduct the allowance for doubtful accounts balance from the estimated bad debts to record the amount of bad debt expense.

Amount of bad debt expense will the company record:

= Estimated bad debts - Allowances for Doubtful Accounts

= $56,500 - $23,100

= $33,400

3 0
3 years ago
An actor is hired to appear in a series of commercials promoting a new laptop computer. The actor's last two movies, though, hav
MA_775_DIABLO [31]

Answer:

Unconditioned stimulus.

Explanation:

Unconditioned stimulus is one that results in a reflexive response. The response is natural, unconditional, and automatic. For example if one smells a food he likes (unconditioned stimulus) the person' s response is to become hungry.

In contrast conditioned stimulus is learners and voluntary.

The actor has had two of his movies fail at the box office so his appearance on the commercial will produce a unconditioned response from the audience that is not favorable. He will have to wait till there is a good impression about him.

3 0
3 years ago
Debt analysis Springfield Bank is evaluating Creek​ Enterprises, which has requested a $ 3 comma 620 comma 000 ​loan, to assess
stepan [7]

Answer:if the debt ratio is lower,the loan request should be granted but if it is higher the loan request should not be granted by the bank.

Explanation:

Debt ratio is a financial ratio which shows the ability of a firm to pay their debt as they fall due.lenders are more concerned with the liquidity position of a firm in order to guarantee the solvency of the firm whenever a loan is granted to such a firm. The debt ratio is used to know the financial leverage of a firm and the financial risk involved in lending to such firm. When a firm is said to be highly leverage it means that such a firm will find it difficult to pay their debt as they fall due because the liabilities in their balance sheet is more than their assets. Debt ratio is calculated as

Total Liabilities/ Total Assets

The Debt ratio is calculated from the Liabilities and Asset figures obtained from their balance sheet. When it is calculated, lower ratio is more preferable than higher rato because it means that a firm will find it easy to settle their debt to their lenders as that debt fall due.but a higher ratio is an indication that such firm will not be able to meet their debt obligation to their lenders as they fall due. Therefore, when a firm has a higher debt ratio it is not advisable to grant a loan to such a firm by the bank. As regard the loan request of Creek Enterprises from Springfield bank, if the debt ratio of Creek Enterprises is lower, the loan should be granted but if it is higher the bank should not grant the loan.

5 0
3 years ago
Which of the following is not an advantage of using conventional crude oil as an energy source? a.ample supply for several decad
Annette [7]

Answer:

The correct answer is letter "D": environmental costs included in market price.

Explanation:

Oil and other resources like natural gas are used as fuel and energy sources. However, <em>the environmental cost of extracting them is not included in the market price</em>. If that would happen, prices of those sources would not be accessible to regular consumers.  

The exploitation of oil emits methane which is a gas even more harmful to the environment than carbon dioxide. Governments in most cases regulate the oil exploitation considering the environmental impact of that activity.

3 0
3 years ago
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