Answer:
(A) $390,000
Explanation:
Under LIFO method as the name suggests "Last In First Out"
the goods purchased in Last that is latest are sold first, that is goods purchased in 2015 will be sold first, therefore in the given case at the end of 2014 using LIFO we have,
Balance = $390,000
Because balance of goods purchased in 2014 i.e. $756,000 is sold first in 2014 remaining inventory at year end will be of 2013
Correct option is
(A) $390,000
Answer:
False
Explanation:
The product specification should include constituent and its proportion in the product. This detail is missing in the statement and hence it is false.
Approved substitutes need not be mentioned on the specification thus corroborating the fallacy of the statement
The accumulated net income of a corporation is called profit.
Answer:
$6,541.32
Explanation:
the formula that would be used to solve this question is :
The formula for calculating present value:
FV x (1+r)^-n = P
FV = Future value = $9,963
P = Present value
R = interest rate = 5.4%
N = number of years = 8
$9,963 x (1.054)^-8 = $6,541.32
Answer:
Journal Entry
Explanation:
The Journal Entry is shown below:-
Bad debt expense Dr, $180
To Accounts receivable $180
(Being bad debt expenses is recorded)
Working Note:-
Bad debt expense = $6,000 × 3% = $180 is estimated
Therefore for recording the bad debt expenses we debited bad debt and credited accounts receivable.
