I the second one is more risky I'm not really that good at business
Answer:
Vertical growth
Explanation:
Vertical growth occurs when a company sets up operations and distribution channels for a new product. There is an expansion from its traditional product offering.
Vertical growth aims to increase control of distribution and suppliers and scaling of product within existing line of production.
Ford motor's initiative in setting up its River Rouge Plant outside of Detroit so that iron ore could enter into one end of the plant and a finished automobile could exit out of the other end is vertical growth.
Answer:
a. Journalize the adjusting entry for the estimated customer allowances.
- Dr Sales returns and allowances 10,500
- Cr Customer refunds payable 10,500
The adjusting entry should = total sales x estimated percent of returns = $1,750,000 x 0.6% = $10,500
b. Journalize the adjusting entry for the estimated customer returns.
- Dr Estimated returns inventory 8,000
- Cr Cost of merchandise sold 8,000
This amount is given in the question, $8,000, so you need to record it as a decrease in COGS and an increase in returns inventory.
What Jacob will have is a lose ended lease. It is because
the close ended lease has been provided to him because he needs to surrender or
to turn in his car, specifically the SUV, which is at the end of the term of
the lease.