Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Example of net realizable value?
To exemplify a necessary write-down in the cost of inventory presume that an automobile dealer has a demonstrator on hand. The dealer obtained the auto at a cost of USD 18000. The auto had an actual selling price of USD 19600. Ever since the dealer used the auto as a demonstrator and the new models are coming in the auto now has an estimated selling price of only USD 18100. But the dealer is able to get the USD 18100 only if the demonstrator receives some scheduled maintenance including a tune-up and some paint damage repairs. This work in addition to the sales commission cost USD 300. The net realizable value of the demonstrator after that is USD 17800 (selling price of USD 18100 less costs of USD 300). For inventory purposes the required journal entry is as
Loss Due to the Decline in Market Value of Inventory (-SE) 200
Merchandise Inventory (-A) 200
To write down inventory to net realizable value ($18,000 -$17,800) This entry treats the USD 200 inventory turn down as a loss in the period in which the decline in utility occurred. Such an entry is essential only when the net realizable value is less than cost. If a net realizable value decline but still exceeds cost the dealer would continue to carry the item at cost.
a simple discount note for $6,600 at a ordinary bank discount rate of 8.61% for 60 days. What is the effective interest rate? Round to the nearest tenth of a percent
State and local income taxes Some states also withhold state income taxes. Texas doesn't. If state withholds taxes, there will be form similar to the federal one to determine t
Question 1: (a) What do you understand by term offshore bank? (b) What are the benefits of providing and receiving banking services from an offshore bank? (c) Explain
Q. What is credit balance? If on the other side the sum of the credits exceeds the sum of the debits the account has a credit balance. For example assume that a company has an
what is the implication of applying accounting concepts wrongly
Its depends on the credit period of the company i.e. A company credit period 30 days 85 of the debtors collection should be recovered with in credit period. We can say the Effectiv
Q. Explain about delivery expense? When shipping goods FOB destination freight prepaid the seller is accountable for and pays the freight bill. For the reason that the seller c
White Lightning Inc. report income from continuing operation before income taxes of $626,000 for the year ended 12/31/2004. During October of 2004, White Lightning elected to phase
discuss the features of unincoporated associations
The Olympic Company has an accounts receivable balance at December 31, 2010 of $159,548.00. The existing balance in the Allowance for Uncollectible Accounts was a credit of $2,563
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd