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GalinKa [24]
3 years ago
6

Kumar Inc. uses a perpetual inventory system. At January 1, 2020, inventory was $214,000,000 at both cost and realizable value.

At December 31, 2020, the inventory was $286,000,000 at cost and $265,000,000 at realizable value. Prepare the necessary December 31 entry under (a) the cost-of-goods-sold method (b) Loss method. g
Business
1 answer:
MAVERICK [17]3 years ago
7 0

Answer:

A. Dr Cost of Goods Sold $21,000,000

Cr Allowance to Reduce Inventory to Market $21,000,000

B. Dr Loss Due to Market Decline of Inventory $21,000,000

Cr Allowance to Reduce Inventory to Market $21,000,000

Explanation:

A.Preparation of the necessary December 31 entry under the cost-of-goods-sold method

COST-OF-GOODS-SOLD METHOD

Dr Cost of Goods Sold $21,000,000

Cr Allowance to Reduce Inventory to Market $21,000,000

($286,000,000 - $265,000,000)

B.Preparation of the necessary December 31 entry under the Loss method

LOSS METHOD

Dr Loss Due to Market Decline of Inventory $21,000,000

Cr Allowance to Reduce Inventory to Market $21,000,000

($286,000,000 - $265,000,000)

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Keynes rejected the view that lower wages would direct a recessionary economy back to full employment because
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Answer: the options are added below:

A. market forces would quickly direct an economy back to full employment.

B. lower wages would cause the central bank to reduce the money supply and thereby prolong the recession.

C. lower wages would stimulate inflation and thereby prolong the recession.

D. powerful trade unions and large corporations made wages highly inflexible.

The correct option is D.

Explanation: A Trade Union is also known as a labour union and it is an association of workers in a particular trade, industry, or company that is created for the aim of negotiating improvements in wages and salaries, benefits, better working conditions, or social and political status through collective bargaining.

The view of Keynes is that the trade unions that have become powerful have, in conjunction with large corporations, made wages highly inflexible.

What this means is that they always make sure that there will be no supply of labor if the wages are low, therefore Keynes is of the view that lowering wages will not direct a recessionary economy back to full employment, rather, increasing the wages will ensure that the trade unions and large corporations supply labor and therefore increase employment.

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3 years ago
A central bank buys treasury securities at market rates in order to:
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C increase the money supply in the economy

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Required information [The following information applies to the questions displayed below Kirkland Theater sells season tickets f
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The journal entry is as follows

Unearned ticket revenue Dr  $33,700

       To Ticket revenue  $33,700

(Being the unearned ticked revenue is recorded)

The computation is shown below:

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4 0
3 years ago
In the short run, a perfectly competitive firm should shut down whenever minimum average variable cost exceeds price minimum ave
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Answer:

A. minimum average variable cost exceeds price.

Explanation:

In a perfect competition, there are many buyers and sellers of homogeneous products, and there is free entry and exit in the market.

This simply means that, in a perfectly competitive market, there are many buyers and sellers (price takers) of homogeneous products (standardized products with substitute) and the market is free (practically open) to all individuals or business entities that are willing to trade all their goods and services.

Hence, a perfectly competitive market is characterized by the following features;

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2. No barriers, it is typically free.

3. Equilibrium price and quantity.

4. Many buyers and sellers.

5. Homogeneous products.

Examples of a perfectly competitive market are the Agricultural sector, e-commerce and the foreign exchange market

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