Answer:
The answer is: a
Explanation:
In accounting for financial transactions, there are generally accepted standards used in practice. These standards are based on accounting principles that are designed to result in more consistent and comparable financial statements. One of these principles is the matching principle, where revenues recognised are matched with expenses incurred to generate that revenue.
In line with this principle, revenues should be matched with expenses at the time which the transaction, in this case the sale, occurs. An estimate of the amount receivable that is deemed noncollectable at the time of the sale is recognised as a bad debt expense and an adjustment is made in the allowance for doubtful debts account* in the period which the sale occurs.
*this account increases on the credit side and effectively reduces the accounts receivable amount
Answer:
b. $2,300 gain
Explanation:
The computation of the amount of gain or loss on the sale is shown below:
But before that the net book value is
Net book value of the equipment is
= Cost of an equipment - accumulated depreciation
= $100,700 - $68,800
= $31,900
Now
Gain (Loss) on the sale is
= Sale amount - Net book value of the equipment
= $34,200 - $31,900
= $2,300 gain
Hence, the correct option is b.
Answer:
equivalent annual cost = $224.27
Explanation:
given data
printer costs = $900
salvage value = $300
time = 5 year
Annual maintenance = $50
interest rate = 8%
solution
we get here uniform annual cost that is
equivalent annual cost = net present value ÷ [ 1 - ] + annual maintenance cost ..................1
here net present value =900-300 × = $408.35
put here value
equivalent annual cost =
equivalent annual cost = $224.27
Ok Hugh you want me to hit on my head and then I go on the bus to go get the girls
Explanation:
Given that the peter company identifies the following items so according to that there are certain things that are excluded or included which are as follows:
a. Since the 900 inventory units shipped by Peete company to another company that reflect inclusion as the company is the owner and owned the goods
b. The inventory units are in transit are excluded as the company does not owned the goods because the goods are on the way
c. The 1,200 units are sold but waiting for customer pickup are excluded because the goods are sold by the Peete company that shows the ownership of the goods are transferred
d. The 500 inventory units held on consignment is also excluded because ownership is not with the Peete company it is transferred to the another company