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Naddik [55]
3 years ago
11

The cost-recovery method of recognizing profit for accounting purposes is permitted if a. collections in the year of sale do not

exceed 30% of the total sales price. b. an unrealized profit account is credited. c. there is no reasonable basis for estimating collectibility. d. the method is consistently used for all sales of similar merchandise.
Business
1 answer:
kramer3 years ago
6 0

Answer:

Correct Answer:

c. there is no reasonable basis for estimating collectibility.

Explanation:

The cost recovery method of revenue recognition is a concept in accounting that refers to a method in which a business does not recognize income related to a sale until the cash collected exceeds the cost of the good or service sold. <em>When a situation present itself where there is no reasonable basis for estimating collectibility, it justifies the use of the cost recovery method of revenue and profit recognition.</em>

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Mel prints 1200 leaflets to advertise her new business.
evablogger [386]

Answer:

$0.25

Explanation:

The cost of 1200 leaflets is $250 plus 20% VAT

the  VAT charges is

=20% of $250

=20/100 x 250

=0.2 x 250

=$50

The total cost of 1200 leaflets

= $250 + $50

=$300

1200 leaflets cost , $300

one leaflet will cost

=$300/$1200

=$0.25

6 0
3 years ago
Roman Industries' plant operates five days per week with a daily payroll of $6,000. Employees are paid every Saturday for the wo
Sergeu [11.5K]

Answer:

$12,000

Explanation:

Calculation to determine the amount of Wages Expense recorded on the next payday, Saturday, April 3

Using this formula

Wages Expense=Daily payroll *2 days

Let plug in the formula

Wages Expense=$6,000*2 days

Wages Expense=$12,000

Therefore the amount of Wages Expense recorded on the next payday, Saturday, April 3 is $12,000

4 0
3 years ago
Eliza has the opportunity to receive $15,000 in four years. Assume the annual interest rate is 10%, what is the present value?
KonstantinChe [14]

Answer:

$10,245.20

Explanation:

The present value by the Eliza shall be determined through below mentioned formula:

Present value=Future value(1+i)^-n

In the given question

Present value=?

Future value= Amount that the Eliza will receive after four years=$15,000

i=interest rate involved=10%

n=number of years after which the $15,000 will be received=4

Present value=$15,000(1+10%)^-4=$10,245.20

3 0
4 years ago
Lucy wants to attach a goal cost to each of her life goals. why might she do this?
hammer [34]
She most likely wanted to do this to keep track of her budgeting.

By counting the cost of each of her goals, she will know exactly how much she has to earn and how much work she has to do in order to fulfill all of her Goals

hope this helps
7 0
3 years ago
A company issues bonds with a $100,000 par value, an 8% annual contract rate, semiannual interest payments, and a five year life
Juli2301 [7.4K]

Answer:

                                          Dr.           Cr.

Cash                            $107,850

Bond Payable                               $100,000

Premium on Bond Payable          $7,850

Explanation:

When the Bond is issued on the price more than its face value, the exptra amount from face value received is called Bond Premium.

Bond Face value = $100,000

Issuance price = $107,850

Premium Paid =$107,850 - $100,000 = $7,850

3 0
3 years ago
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