In 2020, Orear Manufacturing signed a contract with a supplier to purchase raw materials in 2021 for $700,000. Before the December 31, 2020 balance sheet date, the market price for these materials dropped to $510,000. The journal entry to record this situation at December 31, 2020 will result in a credit that should be reported
a. as a valuation account to Inventory on the balance sheet.
b. as a current liability.
c. as an appropriation of retained earnings.
d. on the income statement.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “In 2020, Orear Manufacturing signed a contract with a supplier to purchase raw materials in 2021 for $700,000. Before the December 31, 2020 ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
To purchase new furniture, the owner of a restaurant borrowed $5,000 for 2 years and paid $350,000 simple interest on the loan. what rate of interest did she pay? 2.0 percent 10.0 percent 5.0 percent 3.5 percent
Answers (2)
During January 2017, Oriole Company paid a cash dividends of $2240. This transaction reduces stockholders' equity by $2240. increases expenses by $2240. reduces net income by $2240. increases stockholders' equity by $2240.
Answers (1)
Accounting profit differs from economic profit because
Answers (1)
In the long run, persistent deflation in a growing economy can occur if A. increases in AD are proportionately larger than the increase in LRAS. B. there is a temporary decrease in input prices. C. AD increases regardless of what the LRAS does. D.
Answers (1)
Suppose that Peter Minuit did not become the first New York real estate tycoon but instead had invested his $24 at a 5% interest rate in New Amsterdam Savings Bank. What would have been the balance in his account after 5 years? 50 years?
Answers (1)
New Questions in Business
Consider a perfectly competitive market in which all firms have the same costs. Choose the statement that is incorrect. A. The market supply curve is upward sloping at prices above the firm's shutdown price. B.
Answers (1)
1. Identify a company or organization from which you have received high-quality products and describe the characteristics which make it high quality. 2.
Answers (1)
Consider the following list of accounts: Cash Retained Earnings Service Revenue Utilities Expense Salaries Expense Accounts Receivable Accounts Payable Common Stock Equipment Dividends How many of these accounts have a normal debit balance?
Answers (1)
On July 9, Mifflin Company receives an $7,400, 90-day, 10% note from customer Payton Summers as payment on account.
Answers (1)
Which of the following preventive strategies is described below: Violence often escalates. Behaviors like excessive complaining, hostility, threats, swearing, and sabotage frequently precede more violent incidents.
Answers (1)