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professor190 [17]
3 years ago
14

The owner of Cafe Bakka is considering investing in a new point-of-sale system. He spent $10,000 on his current point-of-sale sy

stem five years ago. The new point-of-sale technology will cost $25,000, and will dramatically improve the speed at which his counter staff will be able to take orders, and reduce the owner's administrative work. How should the owner account for the cost of the current point-of-sale technology when performing the capital budgeting analysis to determine whether or not to purchase the new point-of-sale technology? a. He should ignore the cost of the current point-of-sale system when evaluating the cost of the new point-of-sale system. b. He should include the cost of the current point-of-sale system as part of the cost of the new point-of-sale system.

Business
1 answer:
Westkost [7]3 years ago
6 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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Answer:

Explanation:

X1                    X2              Z

0                      0                0

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check the picture attached for more explanation

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Your gross pay on your paycheck is $400. your deductions are as follows: federal income tax - $50.00 state income tax - $20.00 s
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Your net pay would be $480.50
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What other inspiring realizations helped Andrew Feld come up with the idea for his startup? List and rank them in order accordin
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The other inspiring realizations that helped Andrew Feld to come up with the idea for his startup, Fresh Patch, were as follows:

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Thus, these realizations greatly helped Andrew Feld for his startup, Fresh Patch.

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6 0
3 years ago
ECG Company recorded two sales on March 1 of $20,000 and $30,000 under credit terms of 3/10, n/30 (3% discount if paid within 10
AlladinOne [14]

Answer:

In net method the discount not given is recorded as revenue and in gross method the discount allowed is recorded as expense.

Explanation:

ECG Company

Journal Entries

<u>Net  Method</u>

Date               Particulars                         Debit             Credit

1 March        Accounts Receivable       19400

                     Accounts Receivable     29,100

                              Sales                                              48500

( Calculation of net Sales ( 20,000* 3% = 600, 30,000* 3%= 900) 20,000- 600= 19,400 and 30,000- 900= 29,100)

8 Mar             Cash                         19400

                          Accounts Receivable                      19400

Receipt of 20,000 Sales within discount period.

25 Mar          Cash                        30,000

                      Accounts Receivable                          29,100

                    Interest Revenue                                        900

Receipt of payment after discount time period.

<u>Gross Method</u>

1 March        Accounts Receivable       20,000 Dr

                     Accounts Receivable      30,000 Dr

                              Sales                                              50,000 Cr

Transactions of Sales on gross method. Here discount is not calculated unless given.

8 Mar             Cash                         19400 Dr

                      Discount Allowed       600 Dr

                          Accounts Receivable                      20,000 Cr

Receipt of 20,000 Sales within discount period.

25 Mar          Cash                        30,000 Cr

                      Accounts Receivable                          30,000 Cr

           Receipt of Sales of 30,000 after the discount period.

6 0
3 years ago
Dexter Company uses the direct write-off method. March 11 Dexter determines that it cannot collect $9,100 of its accounts receiv
Sidana [21]

Answer:

(During write-off) March 11

Dr    Bad debt expense                     $9,100

Cr    Accounts receivable                  $9,100    

(at the time of collection) March 29

 Dr Accounts receivable                      $9,100    

 Cr Bad debts expense                        $9,100

 

  Dr Cash                                              $9,100

  Cr  Accounts receivable                   $9,100

Explanation:

On March 11, Dexter made an entry to write-off bad debts in the amount of $9,100. Dexter Co., charged it directly to Accounts receivable because the company uses direct write-off method. During the collection we have 2 steps to consider; First, On March 29 during the unexpected collection, Dexter shoud set up the reversal of the write-off entry which they had made last March 11. So we debit Accounts receivable and credit bad debts in the amount of $9,100. Second, is to record the collection, debit cash and credit Accounts receivable in the amount of $9,100.

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