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Ierofanga [76]
2 years ago
3

55 points Sean is a wholesaler who buys goods in bulk from a manufacturer. The manufacturer offers Sean a discount on these purc

hases. What likely prompted the manufacturer to give Sean this discount
Business
2 answers:
vlabodo [156]2 years ago
7 0

The most likely option is B. Encouraging early sales generally is done by offering Limited Time discounts.

alexandr402 [8]2 years ago
6 0

Answer:

A. to promote goodwill.

Explanation:

The options that come with this question are:

A. to promote goodwill.

B. to encourage early payment.

C. to advertise a product.

D. to reduce transportation expenses.

E. to establish tax benefits.

Most likely, the manufacturer offers Sean a discount on these purchases because he wants to promote goodwill. The fact that Sean is a wholesaler means that his purchases are usually quite big. The manufacturer most likely profits highly from this and is therefore interested in keeping Sean as a customer.

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Meyer & Smith is a full-service technology company. They provide equipment, installation services as well as training. Custo
weqwewe [10]

Answer:

Credit to Unearned Service Revenue of $24,000

Explanation:

Given that,

Fair values:

Equipment = $90,000

Installation = $60,000

Training = $30,000

Total fair value = $90,000 + $60,000 + $30,000

                         = $180,000

Total cost of purchasing equipment, installation and training = $144,000

The cost to be allocated proportionately is as follows:

The transaction price allocated to the Equipment:

= Fair value of equipment × (Total cost ÷ Total fair value)

= $90,000 × ($144,000 ÷ $180,000)

= $90,000 × 0.8

= $72,000

The transaction price allocated to the Installation:

= Fair value of installation × (Total cost ÷ Total fair value)

= $60,000 × ($144,000 ÷ $180,000)

= $60,000 × 0.8

= $48,000

The transaction price allocated to the Training:

= Fair value of training × (Total cost ÷ Total fair value)

= $30,000 × ($144,000 ÷ $180,000)

= $30,000 × 0.8

= $24,000

Therefore, the journal entry to record the transaction on March 15, 2021 will include a credit to Unearned Service Revenue of $24,000 (for training).

Note: As the product is purchased and installed on the same day of purchase but the training would be provided in the future. Hence, it is treated as the unearned service revenue.

7 0
2 years ago
Chubbs Inc.’s manufacturing overhead budget for the first quarter of 2017 contained the following data. Variable Costs Fixed Cos
nydimaria [60]

Answer:

\left[\begin{array}{cccc}-&Budget&Variance&Actual\\IL&10,000&700&9,300\\IM&11000&-3,800&14,800\\Utilities&7,400&-2,400&9,800\\Maintenance&6,000&1,200&4,800\\Total  \: Variable&34,400&-4,300&38,700\\Supervisor&35,400&0&35,400\\Depreciation&7,100&0&7100\\PT and insurance&7,700&-600&8,300\\Maintenance&6,000&0&6,000\\Total \: Fixed&56,200&-600&56,800\\Total \: MO&90,600&-4,900&95,500\\\end{array}\right]

Explanation:

We list them and subtract budget - actual

When actual is greater than budget the variance is negatine.

While budget being lower than actual is considered a positive variance.

3 0
2 years ago
Brockman Company is preparing its cash budget for the upcoming month. The budgeted beginning cash balance is expected to be​ $35
Mama L [17]

Answer:

Required loan = $16000

Explanation:

given data

beginning cash balance = ​ $35,000

cash disbursements = $127,000

cash receipts = $126,000

ending cash balance wants = $50,000

to find out

How much would Brockman Company need to borrow

solution

we get here Ending cash balance that is express as

Ending cash balance = beginning cash balance + cash receipts - Cash disbursement     ..........................1

put here value we get

Ending cash balance = $35000 + $126000 - $127000

Ending cash balance = $34000

and required loan to borrow will be here as

required loan = ending cash balance wants - Ending cash balance    .................2

put here value we get

Required borrow = $50000 - $34000

Required loan = $16000

3 0
2 years ago
Flying High Manufacturing produces frisbees using a three-step sequential process that includes molding, coloring and finishing.
Talja [164]

Answer:

Option D : Debit to WIP Inventory - Coloring and Credit to WIP Inventory - Finishing

Explanation:

Definition of Finish Goods Inventory:

Finish Goods means having a product that is ready for the dispatch(consumer) after the completion of all processes of manufacturing. i.e. Molding, Coloring, Finishing for the process in hand.

Therefore Finish Goods Inventory will be the products which we receive after the completion of Finishing process not after the coloring process.

Considering the above statement, Option A & Option B get omitted from the possible correct options.

Thus we are left with only Option C & Option D:

As we know that:

Credit is something due towards a process(person) and increase the liability of respective process or person.

Debit is something given by a process (person) and decreases the liability of respective process or person.

On seeing the definitions of credit & debit, if frishbees are being transferred from coloring to finishing process, then it should be debited from the coloring process's account as it has handed over the product while decreasing it's liability and,

It should be credited to the finishing process's account as it has received the product to work on while increasing it's liability.

Taking the above explanation into consideration:

Option D is our only true choice.

6 0
2 years ago
The cost of making a shirt is half of what the shirt normally sells for. today, however, the shirt is on a 15% discount from its
Stolb23 [73]
Let the cost of the shirt be y and the price by the which the shirt is sold is 2y.

Now, let's calculate how much does 15% represent from the price of the shirt:
15% discount = (15/100) x 2y = 0.3y
Therefore, the shirt is sold for : 2y - 0.3y = 1.7y

This means that at 15% discount, the shirt is sold at 1.7 of its original cost.
7 0
2 years ago
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