Answer:
Single source procurement agreement
Explanation:
Single source purchasing often results when a buyer or distributor purchases from only one selected supplier, even though there are other suppliers that provide similar products.
In this scenario the petrol dealer was forced into the agreement likely because of costs benefits to be derived from the petroleum supplier.
Answer:
Sunk cost = WDV of old machinery costing $431,000 - Any amount recovered.
Explanation:
Sunk cost is the cost that has actually been incurred and can not be avoided in any manner, currently while making both the decisions whether to buy model 220 machine or 370 machine we incurred the cost of dropping the old machinery of value of $431,000.
Therefore the book value of old machinery costing $431,000 is the sunk cost incurred in making the decision of buying new model.
In case any amount is recovered from sale of such amount then such amount recovered shall be deducted from the Written down value (WDV) of the old machinery and that will be our sunk cost.
Sunk cost = WDV of old machinery costing $431,000 - Any amount recovered.
Answer:
The entries are as follows
To record estimated returns on Sales
Debit: Sales Refund Payable Account $131,400
Credit: Accounts Receivables $131,400
To record estimated Cost of Sales returns
Debit: Inventory Returns Estimated Account $77,700
Credit: Inventory on Sales on Returns $77,700
Explanation:
To derive the figure for Sales Refund payable for the year
6% of $2,190,000
= 
= $131,400
To derive the figure for Inventory cost on Sales Refund payable for the year
6% of $1,295,000
= 
= $77,700
Given the list price equal to $ 9,900, trade discount equal to 2 3/8 % =19/8 %, the net price is calculated below -
Net price factor = (100-19)/100 x (100-8)/100=0.81 x 0.92=0.7452
Net price of the order = $ 9,900 x 0.7452 = $ 7,377.48
To the nearest cent, the answer is $ 7.377.50
Merchandise Inventory account includes the cost of goods purchased, shipping and handling costs, transit insurance, and storage costs
Explanation:
<u>Merchandise inventory is the finished goods held for resale to customers. </u>
<u>Merchandise Inventory includes all goods owned by a company and held for sale.</u>
A Merchandise Company:
- Earns its net income by buying and selling merchandise
- It can also buy products from manufacturers and sell it to retailers
- It can also buy products from manufacturers and sell them to customers
- can be a wholesaler or a retailer
Merchandise Inventory is referred to as current asset
Merchandise Inventory account includes the cost of goods purchased, shipping and handling costs, transit insurance, and storage costs
