Answer:
F. Debit Accounts Payable $50.
B. Credit Merchandise Inventory $50.
Explanation:
As the company uses perpetual Inventory System, the journal entry to record the purchase return will be -
Debit Accounts Payable $50
Credit Merchandise Inventory $50
As the purchase was on credit, cash would not be either debit or credit. As the Merchandise Inventory returned to the suppliers, inventory was decreased. Hence, inventory will not be debit. Accounts payable was reduced too. Therefore, accounts payable will not be credit. Purchase returns are used in the periodic inventory system.
Answer:
$20 million
Explanation:
Data provided in the question:
Book value of assets in 2005 = $1,200 million
Fair value of assets in 2005 = $955 million
Book value of assets in 2006 = $720 million
Fair value of assets in 2006 = $700 million
Now,
Impairment Loss = Fair value - Carrying value of Net assets
or
Impairment Loss
= Fair value of assets in 2006 - book value of assets in 2006
= $700 million - $720 million
= - $20 million [ Here, the negative sign means a loss]
Hence,
Impairment loss of $20 million
Answer:
Regional Products
Explanation:
According to the UCC where place of delivery is not specified in a transaction, the place of delivery of the goods will be at the seller's place of business.
This will help with inspection, where the buyer has an opportunity to inspect the goods and either accept or reject before transportation cost is incurred.
Answer:
The correct answer is risk-return.
Explanation:
The relationship between profitability and risk can be stated in other terms. When faced with a high level of uncertainty about the outcome of an investment, one might expect higher remuneration to outweigh the high risk.
For example, if you lend money to someone with a timely repayment history of your loans, you could accept a low interest rate in return. However, if you lend money to a manifestly unreliable person, you are likely to demand higher returns to compensate for the increased risk of default. This is often called the risk-benefit balance.
