Why is it important for the business owner to understand the market they are selling to?

Charleston, Inc. has Accounts Receivable of $170,000 and an Allowance for Doubtful Accounts of $11,000. If it writes-off a custo

Romashka [77]

Answer:

$159,000

Explanation:

The double entry to record the writes off balances which are the bad debts of Customers who will not pay the debt, will include debit to allowance which is decrease in the allowance and credit to accounts receivable which is also a decrease to accounts receivable:

Dr Allowance for doubtful account $1,100

Cr Accounts Receivable $1,100

Similarly the increase in Allowance for Doubtful Accounts of $11,000 will be treated totally opposite of the decrease in Allowance for Doubtful Accounts above:

Dr Accounts Receivable $11,000

Cr Allowance for doubtful account $11,000

Now, the increase in allowance is deducted from opening accounts receivables and vice versa. The treatment is given below:

Opening balance of Accounts receivables $170,000

Accounts Receivable ($1,100)

Allowance for Doubtful Debt ($11,000 - $1,100) $9,900

Accounts Receivable (Net) $159,000

5 0

2 years ago

Two things that help you begin decomposing work are _____ and _____. Select an answer: reporting period; deliverables the scope

Rashid [163]

Answer:

the scope statement; deliverables

Explanation:

"Decomposing" a project will ensure an efficient way of accomplishing the project's goal. Before doing this, it is important to know what "the scope statement" is and the "deliverables" (multiple tasks in the production).

"The scope statement" allows one to know what should be included in the decomposition. It also tells when you are going to stop breaking down and what tasks are to be included. Once you know this, it becomes easier to decompose a project with one deliverable at a time. The scope will also be further clarified.

So, this explains the answer.

8 0

2 years ago

What are Logistics careers?

mixer [17]

Crucial to the supply chain of any business, logistics involves the timely delivery of freight and goods from one place to another, as well as the unloading and unpacking of this cargo. Logistics workers may perform duties including inventory control, pricing and ticketing, and merchandise assembly.

6 0

2 years ago

Marketing strategy involves the activities of selecting and describing one or more target markets and developing and maintaining

Nata [24]

Answer:

The statement is true

Explanation:

Marketing strategy is the strategy which is defined as all of the marketing objective as well as goals of the company combined into a one or a single comprehensive plan. It is the one which develop and create marketing mix.

It is designed in order to develop or promote the good and service so that the business could earn or make profit.

So, the statement is true as it is stating that the strategies involve selecting activities and define 1 or more target markets. Also maintain and develop the marketing mix.

4 0

3 years ago

At the beginning of the current period, Chen carried 1,000 units of its product with a unit cost of $10. A summary of purchases

jeka94

Answer:

a. Cost of Goods Sold under FIFO method - $ 29.800

Ending inventory under FIFO method - $ 28,400

b. Cost of Goods Sold under average cost method - $ 33,950

Ending inventory under average cost method - $ 24,250

Explanation:

Units Unit Cost Cost

Beginning Inventory 1,000 $10 $10,000

Purchase #1 1,800 $ 11 $ 19,800

Purchase #2 800 $ 13 $ 10,400

Purchase #3 1,200 $ 15 $ 18,000

Total available 4,800 $ 58,200

Units sold ( 2,800)

Ending Inventory 2,000

Computations under FIFO method

In the FIFO method of cost flows, the cost of goods sold are considered from the opening inventory and the earlier purchases. The ending inventory is from the later purchases.

Cost of goods sold

Units sold 2,800

Opening inventory 1,000 units @ $ 10 $ 10,000

Purchase # 1 1,800 units @ $ 11 $ 19,800

Total cost of Goods sold $ 29,800

Ending Inventory

Units on hand 2,000

Purchase #2 800 $ 13 $ 10,400

Purchase #3 1,200 $ 15 $ 18,000

Ending Inventory $ 28,400

Computations under Average Cost method

Under average cost method, the cost of goods sold and the ending inventory is valued at the average cost of the goods available for sale divided by the number of units.

The average cost is calculated by dividing the total cost by the available units

Total Cost $ 58,200

Units available 4,800

Average cost per unit $ 12.13

Cost of goods sold = Units sold * Average cost = 2,800 * $ 12.13 = $ 33,950

Ending Inventory- Units in hand * Average Cost = 2,000 * $ 12.13= $ 24,250

6 0

3 years ago

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