ABC Co. and XYZ Co. are identical firms in all respects except for their capital structure. ABC is all equity financed with $550

Answer:

Corrected cost of goods sold $1,388,760

Corrected retained earnings $5,354,720

Explanation:

First, we need to determine corrected cost of goods sold

Corrected cost of goods sold at December 31, 2020

= Beginning inventory - Purchases - Ending inventory

= $1,453,700 - [$102,820 - $37,880]

= $1,453,700 - $64,930

= $1,388,760

The December 31,2020 corrected retained earnings would be computed as;

= Ending retained earnings - Overstated ending inventories at December 31, 2020

= $5,392,600 - $37,880

= $5,354,720

Answer and Explanation:

The Journal entry is shown below:-

1. Accounts receivable Dr,              $8,380

          To sales revenue                              $8,380

(Being credit sales is recorded)

For recording the credit sales we simply debited the accounts receivable and credited the sales revenue)

2. 7% Notes receivable Account Dr, $8,380

             To Accounts receivable                     $8,380

(Being settlement with the account is recorded)

For recording the settlement with the account  we simply debited the 7% Notes receivable and credited the accounts receivable.)

Answer:

Break-even point= 110,000 units

Explanation:

Giving the following information:

Hurly Co. has fixed costs totaling $165,000. Its unit contribution margin is $1.50.

The break-even point in units is the number of units required to cover for the fixed and variable costs.

To calculate the break-even point in units, we need to use the following formula:

Break-even point= fixed costs/ contribution margin

Break-even point= 165,000/1.5= 110,000 units

Answer: Knowing cultural tenders of th partners and competitors gives you a competitive advantage .

Explanation: Pat’s concern about better knowing the cultural tendencies of her business partners and competitors in Europe and Asia. To be successful, you need to be able to articulate the benefit you provide to your target market that's better than the competition. That's your competitive advantage. You must reinforce that message in every communication to your customers. That includes advertising, public relations, and sales aids.A competitive advantage means you need to offer some things your competitors don't. Therefore, you need to know what it is your competitors do well, and do not do well. Think about your competitors' products, services, prices, location, and marketing.Knowing about your competitors will help you to communicate with your target audience, distinguish your business from competitors, improve your processes, and navigate challenges in your market.

Answer:

Explanation:

When a sales is made on credit, the primary accounts that are affected are the sales accounts and the accounts receivable , with a credit entry of the sales value to the sales account and the same value in the receivable account. We also need to know that the cost of the item is credited to the inventory and debited to the cost of goods respectively.

However , when the sales is returned , the above entry will be reversed and a reversal entry is recorded as below

Credit account  receivable - $500

Debit sales return = $500

Debit merchandise inventory $150

Credit cost of goods $150