Answer:
Soundgarden Company
Journal Entries:
July 10, 2020:
Debit Cash Account (or Accounts Receivable) $800,000
Credit Sales Revenue $800,000
To record the sale of 200 copiers at $4,000 apiece.
July 10, 2020:
Debit Warranty Expense $66,000
Credit Warranty Liability $66,000
To record the estimated warranty maintenance on copiers sold.
December 31:
Debit Warranty Liability $17,000
Credit Inventory $17,000
To record actual warranty costs incurred.
Explanation:
Soundgarden should record these transactions according to the matching principle, whereby warranty expense is recognized in the period that matches the sale so that all expenses related to sales are recognized when the sales are recognized. This is achieved by creating a warranty liability account after the sales and recording a warranty expense as the debit entry. When actual warranty costs are incurred, the Soundgarden Company will debit the warranty liability and credit the inventory actual for the actual costs.
The answer is b idk why but i think im right
Answer:
PED = 0.67 inelastic demand
you should not lower the price of the book
Explanation:
the midpoint formula for calculating price elasticity of demand = {(Q2 - Q1) / [(Q2 + Q1) / 2]} / {(P2 - P1) / [(P2 + P1) / 2]}
PED = {(50 - 40) / [(50 + 40) / 2]} / {(25 - 35) / [(25 + 35) / 2]} = [10 / (90 / 2)] / [-10 / (60 / 2)] = (10 / 45) / (-10 / 30) = 0.222 / -0.333 = 0.67
the PED = 0.67 which means that the demand is inelastic
if you lower the price of the book, the increase in number of books sold will be proportionally lower than decrease in price, so you will lose money by doing that.
Answer: Item A - Single Sourcing Strategy
Item B - Multiple Supplier Strategy
Explanation:
Item A:
This item is in high volume and has a low risk factor because there are multiple potential Suppliers present in the market. Because of this you can choose the SINGLE SOURCING STRATEGY because you can easily switch to others if one is unable to supply you with the good.
Item B:
This item has a low volume as the Suppliers are equally low. This means that the risk factor here is quite high. Because of these factors it is best to use a MULTIPLE SUPPLIER STRATEGY to mitigate the risk that one supplier will not have it. This was many options are available.
If you need any clarification do react or comment.
Answer:
B. a decrease of $30,000
Explanation:
The computation of company’s overall profit is shown below:-
To continue = Contribution margin - Fixed cost
= $65,000 - $70,000
Loss = $5,000
To Discontinue = Unavoidable fixed cost ÷ 2
= $70,000 ÷ 2
= $35,000
So, Net Loss = To continue (Loss) - To Discontinue
= $5,000 - $35,000
= $30,000
Therefore there is a decrease of $30,000