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soldier1979 [14.2K]
2 years ago
14

Waltham Distribution Company has determined its December 31, 2020, inventory on a LIFO basis at $200,000. Information pertaining

to that inventory follows.
Estimated selling price $208,000
Estimated cost of disposal 10,000
Normal profit margin 6,000
Current replacement cost 190,000

Waltham Distribution records losses that result from applying the lower-of-cost-or-market rule. At December 31, 2012, the loss that Ryan should recognize (Under US GAAP) is:_____
Business
1 answer:
Bess [88]2 years ago
8 0

Answer:

$10,000

Explanation

Calculation for Waltham Distribution should records losses that result from applying the lower-of-cost-or-market rule. At December 31, 2012, the loss that Ryan should recognize (Under US GAAP) is

Using this formula

lower-of-cost-or-market rule Loss=Inventory- Current replacement cost

Let plug in the formula

lower-of-cost-or-market rule Loss= $200,000 – $190,000

lower-of-cost-or-market rule Loss= $10,000

Therefore Waltham Distribution should records losses that result from applying the lower-of-cost-or-market rule. At December 31, 2012, the loss that Ryan should recognize (Under US GAAP) is $10,000

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Procrastinating and that’s the answer
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Hercules Workout World gains a client who prepays $ 660 for a package of six physical training sessions. Hercules Workout World
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Service revenue of $ 440

Explanation:

When the customer prepays, the revenue is yet to be earned hence the entries required would be a debit to cash account and a credit to unearned or deferred revenue.

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Since $660 was collected for 6 training sessions

Revenue from a training session

= 1/6 × $660

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3 years ago
Kim hired Gold Contracting to build a pool and a fancy gazebo in her backyard. The plans were complex and required expert workma
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Answer:

B. Kim will win, because the bonus is a reward for work they have already performed, which is past consideration and cannot be used to create a contract.

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The trial balance of Woods Company includes the following balance sheet accounts. Identify the accounts that might require adjus
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Answer:

The account wise answers are given below

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a) Account receivable are adjusted for any doubtful debts and uncollectible accounts from customers.

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Bad debt Expense        Dr.$$

Provision for Bad debts  Cr. $$

When it is certain that customer will no longer pay the specified amount, the write off entry is made as follows

Provision for Bad Debts    Dr. $$

Accounts Receivable        Cr. $$

b)Prepaid Insurance

It is adjusted when the period for it is paid in advance has lapsed or expired then expense is recorded and prepaid insurance is reduced

The adjusting entry is made as follows,

Insurance Expense   Dr.$$

Prepaid Insurance    Cr.$$

c) & d) Equipment & Accumulated Depreciation

The Assets are adjusted over their useful life for depreciation. When an asset is used during whole year, its cost is reduced and that reduction is recorded as deprecation expense and accumulated depreciation.

The Adjusting Entry is made

Depreciation Expense      Dr. $$

Accumulated Depreciation  Cr. $$

When asset is sold the adjusting entry is made,

Accumulated Depreciation Dr. $$

Asset-Equipment                    Cr. $$

e)Notes Payable & f) Interest payable

These are liabilities. When any expense is accrued and any interest is payable but not paid on loan received is recoded is liability.

The adjusting entry is made,

Interest Expense/Notes Expense   Dr.$$

Interest Payable or Notes Payable  Cr.$$

g) Unearned Service Reveune

It is liability in nature when services are not rendered but amount for those services is paid in advance then its called unearned service revenue.

When those services are actually rendered to customers, the adjusting entry is made,

Unearned Service revenue Dr. $$

Service revenue                    Cr. $$

7 0
3 years ago
Liham para sa kaibigan​
Citrus2011 [14]

Answ          weres the leter

Explanation:

4 0
3 years ago
Read 2 more answers
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