Answer:C. It makes it more difficult for the company to define an appropriate time period.
Explanation: Obsolete Items or products are products are no longer useful or relevant,it can be used to describe a product whose Quality has adversely depleted making it not useful.
With the information,since the products are fast becoming Obsolete than when compared to 10years ago,it makes it more difficult to determine or arrive at the appropriate time period for the company to keep the product before it becomes obsolete.
Answer:
The estimated amount of Bad Debt Expense for the year is $12,950
Explanation:
According to the given data we have the folloiwng:
reported sales during the year= $226,500
credit sales=$185,000
Libby has experienced bad debt losses of 7% of credit sales in prior periods
Therefore, in order to calculate the estimated amount of Bad Debt Expense for the year we would have to make the following calculation:
estimated amount of Bad Debt Expense=credit sales×bad debt losses percentage of credit sales in prior periods.
Hence, estimated amount of Bad Debt Expense= $185,000× 7%
estimated amount of Bad Debt Expense= $12,950
The estimated amount of Bad Debt Expense for the year is $12,950
Answer:
The correct option is C
Explanation:
The journal entry which is to be passed in order to replenished the account is as:
Petty Cash A/c..................................Dr $84
Cash A/c...............................................Cr $81
Cash Over and Short A/c..................Cr $3
In order to replenish the account of petty cash, the account of expense (name of expense is not given, so petty cash account) is debited. Therefore, the petty cash is debited. The cash account is credited and the excess or over (which is $3 that is $200 - [$119 + $84 = $203] ) is replenished by crediting the account.
Answer: $14,625
Explanation:
Based on the information given, if practical capacity is used to allocate cost, the cost that is allocated to shipping will be:
= Budgeted annual cost/200 × Number of shipping work stations
= 65000/200 × 45
= $14,625
Answer:
Correct option is C.
<u>Maximum potential loss from this position is $800</u>
Explanation:
Premium paid for call option = $6 * 100 = $600
Premium paid for put option = $2 * 100 = $200
Total cost = $600 + $200 = $800
In case the price of underlying stock falls below $75, call option will be exercised. If the price rises above $75 cal option would be, exercised. In case price stays at $75, nothing would be done. In any case the amount lost cannot exceed the cost of $800 that has been paid for the options.
