Review the opening feature of this chapter dealing

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1.Review the opening feature of this chapter dealing with ash & dans and the entrepreneurial owners, Ashley Cook and Danielle Dankner.

Required:
1. Assume that ash & dans sells a $300 gift certificate to a customer, collecting the $300 cash in advance. Prepare the journal entry for the 
(a) Collection of the cash for delivery of the gift certificate to the customer and 
(b) Revenue from the subsequent delivery of merchandise when the gift certificate is used.
2. How can keeping less inventory help to improve ash's profit margin?
3. Ashley Cook and Danielle Dankner understand that many companies carry considerable inventory, and they are thinking of carrying additional inventory of merchandise for sale. Ashley and Danielle desire your advice on the pros and cons of carrying such inventory. Provide at least one reason for and one reason against carrying additional inventory.

Reference no: EM13890429

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