If the consumer expected price increase for any reason in such good he will buy it before the time he expects to apply for that increase.
Answer:
The omission of this entry understated accrued liabilites. given that the related inventory was sold in year 1, it aslo overstated net income and retained earnings by understating cost of goods sold, the same effects would occur if the insurance costs were chargeable to expense as a period cost
Explanation:
Rules specify that contingent liabilities should be recorded in the accounts when it is probable that the future event will occur and the amount of the liability can be reasonably estimated. This means that a loss would be recorded (debit) and a liability established (credit) in advance of the settlement.
Answer:
c. $15,000
Explanation:
The explanation for this question is given in the attachment below.
Yes, there are many savings accounts you can't touch for a period of time
Answer:
The total cost of the phone is $1,270.56
Explanation:
The total cost of the phone is computed as:
Total cost = Cost of phone for 2 years + Cost of warranty coverage for 2 years
where
Firstly, the cost of phone for 2 years is computed as:
Cost of phone =( For first year) Per month Cost × 12 months +( For second year ) Per month Cost × 12 months
= $39.95 × 12 + $39.95 × 12
= $ 479.4 + $479.4
=$958.8
Then, the Cost of warranty coverage for 2 years is computed as:
Cost of warranty = ( For first year) Per month Cost × 12 months +( For second year ) Per month Cost × 12 months
= $12.99 × 12 + $12.99 × 12
= 155.88 + $155.88
= $311.76
Therefore, the total cost would be:
Total cost = $958. 8 + $311.76
= $1,270.56