Answer:
A) Accounts receivable turnovers are 10.0 and 6.6 and the ratios of uncollectible accounts receivable to gross accounts receivable are 0.30 and 0.16, respectively. Examine allowance for possible understatement of the allowance.
Explanation:
accounts receivable turnover from the previous year = total sales previous year / average gross receivables previous year = $1,000,000 / $100,000 = 10
accounts receivable turnover from the current year = total sales current year / average gross receivables current year = $2,000,000 / $300,000 = 6.67
ratios of uncollectible accounts receivable to gross accounts receivable for previous year = $30,000 / $100,000 = 0.3
ratios of uncollectible accounts receivable to gross accounts receivable for current year = $50,000 / $300,000 = 0.167
Option A shows the correct amounts for the accounts receivable turnover and ratios of uncollectible accounts receivable to gross accounts receivable. Since the ratio of uncollectible accounts receivable decreased so much during the current year, the allowance for accounts receivables for the current should be double checked to see if it wasn't understated.
Answer:
$3,735
Explanation:
The computation of the total cost that will be included in the numerator of that calculation is shown below:
= Beginning work in process + cost added during the period
= $350 + $3,385
= $3,735
Basically, we added the beginning work in process and the cost added during the period
The same amount is shown on the numerator side while calculating the cost per equivalent unit
'Elastic' goods-is something in the market that is high in demand (in publicity-and that people buy it.
Ex beef is a great example of an elastic good. If you set the beef to a higher price than usual-customers will not buy it as expectedly as before.
'Inelastic' goods like gas- is a perfect example because if you set gas in high price-customers would not question it and pay for the price of gas anyways. (Due to it fulfilling customers' needs only.)
To answer your question, a horizontal demand curve is when you have a fixed demand in price (people are buying it has demand) and that supplies have ample quantity. (Supplies are high quantity)
Demand for a good in the horizontal demand curve is 'moderately elastic' because the supplies have quantity more than the fixed demand. It fits modernly elastic-customers are not buying as much due to high price and therefore supplies of quality increases. Just like the beef example.
The Answer is A
If the horizontal demand curve is 'inelastic' then it would be the opposite- demand would be higher than the quantity of supply.
Hope this helps :)
Answer:
The machine has a useful life or 4 years and residual value of $1400 so its total The Depreciable Amount is $21,600 (22000-1400)
If we use straight line method depreciation in each year will be 21,600/4=$5400
If we use Units of production method then:
Year 1= 21,600*4120/10300=$8640
Year 2=21600*3090/10300=$6480
Year 3=21600*2060/10300= $4320
Year 4= 21600*1030/10300=$2160
If we use the double-declining method
Rate of Depreciation = 1/4*2=50%
Year = 0.5*21600=$10800
Year 2=0.5*(21600-10800)=$5400
Year 3= 0.5*(10,800-5400)= $2700
Year 4= (5400-2700)= 2700
Explanation:
