Answer:
a Debit
b Credit
c Debit
d Credit
e Credit
f Credit
g Debit
h Debit
i Debit
Explanation:
The rules are that increase in assets such as cash account ,delivery equipment,accounts receivable are debited while the reverse is done for reduction in assets.
The increase in liability accounts and revenue such as accounts payable and revenue account delivery fees are normally credited while the reverse applies to decrease in liabilities.
The increase in expense is normally debited while the reduction in expense is a credit.
The increase in capital account is a credit
Answer:
Merchandise purchases budget explanations only.
Explanation:
Hi, your question has missing information, however i have supplied explanations below.
A purchases budget is required to determine the quantities of purchases required for :
- Resale - For Merchandisers
- Use in Production in case of Manufacturer
Here is the structure of the merchandise purchases budget for Walker Company (Merchandiser).
<u>Merchandise purchases budget </u>
Month
Budgeted Sales x
Add Budgeted Inventory x
Total Purchases needed x
Less Budgeted Opening Inventory (x)
Budgeted Purchases x
As stated by the question : <em>Company policy is to end each month with merchandise inventory equal to a specified percent of budgeted sales for the following month.</em>
<em>Ending Inventory = Next months` sales x required percentage</em>
Ending Inventory for one month say July becomes Opening Inventory for the following month (August) for our merchandise purchases budget.
Answer:
Part 1
<u>Cash Account</u>
$
<u>Debit :</u>
Receive cash from customers 15,000
Sale of Equipment 8,000
Bank Loan 4,000
Totals 27,000
<u>Credit :</u>
Pay cash for employee salaries 9,000
Rent 3,000
Utilities 1,000
Advertising 7,000
Ending Balance 7,000
Totals 27,000
Part 2
Ending Balance is $7,000
Explanation:
Only Cash related purchases and receipts are posted to Cash Account. Thus ignore non-cash related transactions.
The Cash Account : Receipts are posted at the Debit side of this Account and Payments at the Credit Side.
The Balance : After determining the Totals of the Debit and Credit, the shortfall of any of that side represents the Balance.
Answer:
Predatory pricing.
Explanation:
Predatory pricing is a strategy that is used by firms to gain customers, create barrier of entry from a market, or to drive competition out of the market. The firm prices it's products very low so that competitors cannot afford to sell at the same price.
This results in competitors going out of business. The result of predatory pricing is that there are few firms left in the industry, or there is establishment of a monopoly.
Answer:
The answer is False. By cutting the variance of the demand during lead time to 1/2 its original value while maintaining the same lead times, the new safety stock will also drop to 1/2 its original value.
Explanation:
Safety stock is a form of inventory management that provides an additional unit of an item held as a buffer i order to mitigate risk of running out of stock.
A reorder point provides a buffer of time to restock items when stock is running out. It helps to reduce operational costs and chaos that may arise such as rush fees owed to suppliers. It makes the use of a warehouse space more efficient.
Suppose we are a distributor that uses safety stock and a reorder point for inventory management. If we can find a more consistent manufacturer that will maintain the same mean lead times while cutting the variance of the demand during lead time to 1/2 its original value, the new safety stock that we need to carry to achieve the same service level will also drop to 1/2 its original value.
