Answer:
a. When the equipment is sold.
Explanation:
As we know that
When someone sells or purchase a product, the services are attached to the product which is passed from the buyer to the seller that can be in terms of warranty i.e after-sales services, etc
So according to the given situation, the estimation of the warranty cost is $25 per time sold so the warranty cost should be recognized when the equipment is sold as it is attached to the product
Answer: critical-thinking skills and knowledge of environmental regulations
Explanation:
Since Eyan is giving a seminar on environmental conservation efforts in a local factory, the quality that Eyan is using when writing and presenting his seminar will be critical-thinking skills and knowledge of environmental regulations.
Eyan should possess critical thinking skill as he should be able to think clearly and at the same time should also have knowledge of environmental regulations.
Answer:
a. Cash paid to suppliers of merchandise during the reporting period: $44.1 million
b. A summary entry that represents the net effect of merchandise purchases during the reporting period as below:
Dr Cost of goods sold 44,000,000
Dr Inventory 6,700,000
Cr Account Payable 6,600,00
Cr Cash 44,100,000
Explanation:
We have the total amount goods buying from the supplier in the period = Cost of good sold in the period + Difference in the inventory balance of the period = $44 million + $6.7 million = $50.7 million
Thus, the additional amount owed supplier in the period is $50.7 million.
Account Payable increased by 6.6 million, it means that only 44.1 million ( that is, 50.7 million - 6.6 million) is paid during the period.
Thus, the summary will represents: Increase in COGS 44 million ( given); Increase in Inventory 6.7 million (given); Increase in account payable 6.6 million ( given) and Decrease in Cash 44.1 million ( calculated above).
