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2 years ago

Indicate whether the situation below will lead to a surplus, shortage, or neither.

Business

1 answer:

Masteriza [31]2 years ago

4 0

If the price of a product falls to what is considered a bargain price, a shortage would occur.

A shortage occurs when the quantity demanded exceeds the quantity supplied. A shortage occurs when price is below the equilibrium price.

A surplus is when the quantity supplied exceeds the quantity demanded. A surplus occurs when price is above the equilibrium price.

When the price of a good falls to what is considered a bargain price by consumers, it means that the price of the good is below the equilibrium price.

When the price of a good is below equilibrium, quantity supplied would fall and the quantity demanded would exceed supply. As a result, there would be a shortage.

To learn more about shortage, please check: brainly.com/question/16137233?referrer=searchResults

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Deere & Company is a global manufacturer and distributor of agricultural, construction, and forestry equipment. The company

barxatty [35]

Answer:

Days in Inventory = 63 days

Explanation:

We know,

Days in Inventory = 365 days ÷ Inventory Turnover

Given,

Inventory turnover = Cost of goods sold ÷ Average Inventory

Inventory turnover = 16,936 ÷ [( $2,410 + 3,430) ÷ 2]

Inventory turnover = 16,936 ÷ (5,840 ÷ 2)

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3 0

3 years ago

Hitzu Co. sold a copier (that costs $7,500) for $15,000 cash with a two-year parts warranty to a customer on August 16 of Year 1

worty [1.4K]

Answer:

1.Warranty expense

$ 750

2.Estimated warranty liability

$ 750

3. Warranty Expense $ 0

Estimated warranty liability

$ 626

5. Hitzu Co. Journal entries

Aug 16

Dr Cash 15,000

Cr Sales 15,000

Aug 16

Dr Cost of goods sold 7500

Cr Merchandise inventory 7500

Dec 31

Dr Warranty expense 750

Cr Estimated Warranty liability 750

Dec 31

Dr Estimated warranty liability 124

Cr Repair part inventory 124

Explanation:

Warranty expense 5% of dollar sales

= 5% × $15,000 = $750.

The December 31, 2017, balance of the liability equals the expense because no repairs are provided in 2017. Therefore, the ending balance of the Estimated Warranty Liability account is $750.

The company should report no additional warranty expense in 2018 for this copier.

The December 31, 2018, balance of the Estimated Warranty Liability account equals the 2016 beginning balance minus the costs incurred in 2018to repair the copier:

Beginning 2016 balance $ 750

Less parts cost (124)

Ending 2018 balance $626

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