Answer:
$43,030
Explanation:
IAS 2 Inventories states that inventory is to be recognized at cost, however, subsequent measurement requires that inventory be carried at the lower of cost or net realizable amount (NRV).
As such, where the cost of inventory is higher than the NRV, it is written down to the NRV using the following entries,
Debit Inventory write off/Cost of goods sold
Credit Inventory account
with the difference between the cost and the NRV.
Inventory Quantity Unit Cost Unit NRV New unit cost
Furniture 230 $88 $103 $88
Electronics 53 $430 $315 $315
From the analysis above, the cost of inventory is lower than the NRV for Furniture, hence no adjustment is required. However, the cost of Electronics is higher than the NRV hence a write down is required. This amount is
= ($430 - $315) × 53
=$115 × 53
= $6,095
Total recorded cost(ending) of inventory before any adjustment
= (230 × $88) + (53 × $430)
= $43,030
This is known as a service agreement. A service agreement is used by companies who want to have a transaction with service providers in order to avail of their services. This is to ensure that both of the parties involved agree on each other terms and that there will be no confusion or conflict.
Answer:
b. $16,004.17
Explanation:
The bond pays annual interest of 7% over the 3 years. The annuity factor at 7% for 3 years is 2.6243. The amount of bond is divided by annuity factor to calculate the annual payment of bond. The payment includes bond principal repayment and interest payment. The first payment on July 31 will be for $16,004.17.
Answer:
Sales contest.
Explanation:
In this scenario, every monday during the month of December, salespeople who had the highest sales the previous week participated in a package surprise, where each would receive a package containing either a $50 or a $100 bill. This short-term incentive is known as a sales contest.
A sales contest can be defined as a short-term incentive program developed or created by a business entity to motivate its sales personnels in order to achieve specific sales objectives and targets.
<em>Basically, it is mainly competitive so as to motivate and stimulate salespeople to meet set objectives, goals and targets by duly rewarding with prizes. </em>
