The above answer can be explained as under -
The journal entry to record estimated warranty expense is -
Warranty Expense Dr. ............. $ 17,800
Estimated Warranty Liability .......... Cr. $ 17,800.
The estimated warranty liability is calculated on the basis of the credit sales of the year and percentage estimated. Here, the credit sales of the year is $ 356,000 and the estimated percentage is 5 % of credit sales. Thus, estimated warranty liability is = $ 356,000
Answer:
a. The account Receivable Turnover is 27 times
b. 13.52 days approximately
Explanation:
1. Account Receivable Turnover = Net sales / Average Account Receivables
Account Receivable Turnover = $1,182,600 / $43,800
Account Receivable Turnover = 27 times
The account Receivable Turnover is 27 times
2. Number of days' sales in receivables days = (Average Account Receivables * 365 days) / Net sales
=(43,800 * 365) / 1,182,600
=13.5185
=13.52 days approximately
Description
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Answer:
True
Explanation:
As at the time factory rent was paid by Pepperdine company, it did notaffect toatal assets as the factory is an asset of he company as it is rented. I also doesn't affect the net income since the rent is going to included in capital for the company.
Cheers.
Answer:
$37,200
Explanation:
In the balance sheet, the assets, liabilities, and stockholder equity is recorded. In this the accounting equation is used which is shown below:
Total assets = Total liabilities + stockholder equity
where,
Total assets = Cash + accounts receivable + supplies + equipment
= $25,500 + $7,800 + $1,150 + $12,600
= $47,050
And, the total liabilities is equal to the account payable i.e $9,850
So, the stockholder equity would be
= $47,050 - $9,850
= $37,200