Answer:
This is an escrow transaction. An escrow is an arrangement where a third party (ABC Escrow) holds funds for a given transaction between other two parties.
The Van Horns are the grantees in this transaction.
The escrow is responsible for the safe keeping of the funds, in order to avoid any type of loss or fraud.
Answer:
Total production= 5,840 units
Explanation:
Giving the following information:
Sales in units:
July= 5,000
August= 5,700
September= 5,560
The company wants to end each month with ending finished goods inventory equal to 25% of the next month's sales. The finished goods inventory on June 30 is 1,250 units.
To determine the production for August, we need to use the following structure:
Production budget:
Sales= 5,700
Desired ending inventory= (5,560*0.25)= 1,390
Beginning inventory= (1,250)
Total production= 5,840 units
A factor that can cause the market demand curve for day-old bread to shift rightward is a decrease in income.
<h3>What is an inferior good?</h3>
An inferior good is a good whose demand falls when income rises and increases when income falls. An inferior good is a good whose demand increases when income falls.
<h3>What is an increase in demand?</h3>
An increase in demand occurs when the demand for a good increase as a result of factors other than a change in the price of a good. When there is an increase in demand, there would be a shift to the right of the demand curve.
For more information about the increase in demand, please check: brainly.com/question/25871620
Amount of bad debts adjusting entry = 0.7% * 945,000 = 0.7/100 * 9450,000 = $6,615
The amount of the bad debts expense adjusting entry = $6,615
Answer:
Total Asset $2,381,500
Net income $298,500
Explanation:
Overstated Inventory Leads to the overstatement of Total Assets value and Net Income. Ending Inventory Value is added in the total asset balance, overstatement in ending inventory causes overstatement in total assets.
The Ending Inventory is also used in the calculation of Cost of Goods sold. Overstated Inventory will cause understatement in Cost of Goods sold and overstatement in Net Income.
To rectify its effect we will deduct the overstated value of Inventory from Total Asset balance and Net Income value.
Total Asset = $2,407,000 - $25,500 = $2,381,500
Net Income = $324,000 - $25,500 = $298,500
