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Anna007 [38]
2 years ago
13

At the end of a reporting period, a company determines that its ending inventory has a cost of $300,000 and a net realizable val

ue of $230,000. What would be the effect(s) of the adjustment to write down inventory to net realizable value?
Business
1 answer:
Maksim231197 [3]2 years ago
7 0

Answer:

1.Cost of Goods Sold Increase by $70,000

2.Gross Profit and Net Profit decrease by $70,000

3.Inventory in balance sheet decrease by $70,000

Explanation:

IAS 2 requires inventory to be measured at the lower of cost or net realizable value.

In our case the inventory will be valued at net realizable value of $230,000 because this is lower.

The effect with this is :

1.Cost of Goods Sold Increase by $70,000

2.Gross Profit and Net Profit decrease by $70,000

3.Inventory in balance sheet decrease by $70,000

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You were planning to spend your Saturday working at your part-time job, but a friend asks you to go trekking at Karagöl. What is
Natali5045456 [20]

Answer:

the true cost (opportunity cost) of going trekking is what the amount that you could have earned from your part time job on that day instead of going trekking. If you were planning to to study, then the true cost of trekking with your friend would be the loss of all the potential knowledge that you could have gain from studying.

Explanation:

opportunity cost is the loss of potential gain from other alternatives when one alternative is chosen.

7 0
3 years ago
On January 1, Year 2, Grande Company had a $63,400 balance in the Accounts Receivable account and a $1,300 balance in the Allowa
irinina [24]

Answer:

$1,520

Explanation:

Given that,

Accounts Receivable balance = $63,400

Allowance for Doubtful Accounts balance = $1,300

Services provided on account during year 2 = $152,000

Cash collected from accounts receivables = $161,300

Estimated Uncollectible accounts = 1% of sales on account

Therefore, the amount of uncollectible accounts expense during the year 2 is the 1 percent of the amount of services provided on account to a customer.

Hence, the amount of uncollectible accounts expense recognized on the Year 2 income statement is calculated as follows:

= Services provided on account × Estimated Uncollectible accounts

= $152,000 × 1%

= $1,520

5 0
3 years ago
Accidental puncture by a sharp object contaminated with the pathogen.
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2 years ago
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What are the four qualities of good leadership?
astra-53 [7]
Honesty , Trustworthy , Determined & Passionate .
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3 years ago
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From the following statements, select the one that describes the effect of dividends on equity.
Firdavs [7]

Answer: d) Dividends cause equity to decrease.

Explanation:

Dividends are payments to shareholders as a way of sharing the profit that the company made with its owners. Net profit is added to the Equity of company.

In other words, dividends cause equity to decrease because they are taken from Retained Earnings (net income) which are added to Equity. By reducing the amount of Retained earnings available therefore, dividends are reducing Equity.

4 0
3 years ago
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