Answer:
Dr Bad Debt Expense $12,760
Cr Allowance for Doubtful Accounts $12,760
Explanation:
Based on the information given the adjusting journal entry that Tanning Company will make if the Allowance for Doubtful Accounts has a credit balance of the amount of $1,400 before adjustment will be :
Dr Bad Debt Expense $12,760
Cr Allowance for Doubtful Accounts $12,760
[(4%*$354,000)-$1,400]
Answer:
Urgency / Postponement leads to customer inelastic demand of ice melt.
Explanation:
Elasticity of demand is responsive change in demand of good, due to change in price. Formula = % change in demand / % change in price
Factors Affecting Price Elasticity of Demand : Nature of commodity, Income, substitutes availability, time period, urgency / postponement, share in total expenditure,
Inelastic Demand is when demand responds proportionately less to price change. % change in demand < % change in price
Case 'Customer critically needs ice melt to drive to work' : This has inelastic demand i.e demand less respondent to price changes (he will buy that at high price too). Such because of the urgency of this demand & less scope of its postponement.
Answer:
greater than both the current yield and the coupon rate.
Explanation:
A discount bond is a bond that at the point of issuance, it's less than its face or par value.
When a bond is trading for less than its face value in the market, it's known as a discount bond.
The yield to maturity on a discount bond is greater than both the current yield and the coupon rate. This simply means that the coupon rate is usually lower than the yield to maturity of the discount bond.
Additionally, the yield to maturity can be defined as the bond's total rate of return required by the secondary market while the coupon rate is defined as the annual interest of a bond divided by its face value.
For instance, when a bond is issued at a par or face value of $5,000, at maturity the investor would be paid $5,000. But because bonds are being sold before its maturity, it would trade below its face value.
Hence, a bond with the face value of $5,000 could trade for as low as $4,800, thus making it a discount bond.
Actually, the time frames of ERP projects would actually depend on different scenarios taking place. These scenarios are as follows:
For financial modules: 2.5 - 4 months
For financial modules and sales functionality: 5 - 6 months
For financial modules, sales, and inventory functionality: 5 - 7 months
