The cost flow assumption adopted must be consistent with the physical movement of the goods.

Spencer Corporation will invest $20,000 at the end of each year for the next six years (2025 – 2030). If Spencer earns 12% on the investment, what amount will be in the investment fund on December 31, 2030? Period                 Future value of an ordinary annuity of $1 at 12% 6                          8.11519   Period                 Future value of an annuity due of $1 at 12% 6                          9.08900  

What is the normal journal entry when writing off an account as uncollectible under the allowance method?  

Bella requires $240,000 in four years to purchase a new home. What amount must be invested today in an investment that earns 6% interest, compounded annually?                                 Periods               Present value of $1 at 6% 1                         0.94340 2                         0.89000 3                         0.83962 4                         0.79209 5                         0.74726 6                         0.70496          

What is the primary difference between an ordinary annuity and an annuity due?   

Companies record and report long-term notes receivable at the present value of the cash they expect to collect.

Massers Company is issuing long-term bonds to raise money for a planned acquisition.  The face value of the bonds is $10,000,000.  The stated interest rate is 10% payable semiannually for the 10-year term.  The current market rate for similar bonds is 8%.  What price should Massers issue this bond at? Period                 Present value of $1 at 8% 10                       0.46319 Period                 Present value of $1 at 10% 10                       0.38554   Period                 Future value of $1 at 8% 10                       2.15892 Period                 Future value of $1 at 10% 10                       2.59374   Period        Present value of an ordinary annuity of $1 at 8% 10                6.71008 20                 9.81815   Period        Present value of an ordinary annuity of $1 at 10% 10                6.14457 20                8.51356   Period        Present value of an ordinary annuity of $1 at 4% 10                8.11090 20                13.59033   Period        Present value of an ordinary annuity of $1 at 5% 10                7.72173 20                12.46221      

Shelton Company has the following account balances at year-end: Accounts receivable                                 $140,000 Allowance for doubtful accounts                     7,200 Sales discounts                                               4,800 Shelton should report accounts receivable at a net amount of ____________

The study of body movement, gestures, and posture is known as 

Joan had to give a presentation at her company’s annual meeting, speaking to an audience of over 3,000 individuals.  Although she was anxious about the daunting task, her anxiety helped her “knock the presentation out the park.”  Her moderate anxiety is referred to as ___________________.