User Account

All Pages

What should johnny do

Assignment Help Financial Accounting
Reference no: EM132718084

Johnny owns a brewery. Year end is August/31. One of his distributors has signed a purchase commitment in August to order 35,000 worth of Heineken with a cost of 12,000 to be delivered at Sept/05/2020.

  • Since Johnny has done business with the distributor before, Johnny believed that commitment would be honoured and he recorded the sale in the current fiscal year. However, due to bar/tavern restrictions for COVID alcohol sales will be affected greatly.
  • The distributor has an accounts receivable balance of 14,000 in Johnnys books. This AR balance has been outstanding for 75 days as of Aug/31. Normal payment terms is 30 days. Distributor used to pay cash but has been starting to ask for longer terms of credit.

Problem 1: What should Johnny do? Consider if the contract is cancellable / non-cancellable, onerous/not onerous?

Reference no: EM132718084

Questions Cloud

What important contributions can you make : What important contributions can you, as an educated accountant? with your unique skills, make to an enterprise's computer acquisition process?
What are the tax related journal entries to record income : What are the tax related journal entries to record income taxes for 2019. Show in detail computations to support your answers.
What is the carrying amount of the copyright at December : Other similar books sold by Sassou for deceased photographers typically remain popular for only 10 years. What is the carrying amount of copyright at December
Technology security education within organizations : Discuss the importance of user technology security education within organizations. What topics should be included in security education and training?
What should johnny do : Johnny owns a brewery. Year end is August/31. What should Johnny do? Consider if the contract is cancellable / non-cancellable, onerous/not onerous?
What was overhead at the end of the year : Dexter Ace Corp uses direct labour-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labour-hours were 17,900 hours.
What are the different types of inventories : What are the different types of inventories? Why do we need to discuss LIFO liquidations in the notes to F/S? What do they tell F/S readers
Solve the expected return for a miami marlins outfielder : Solve the expected return for a Miami Marlins outfielder next year if there is a 20% chance he hits 25 HR, a 30% chance he hits 30 HR, a 35% chance
Discuss the various security related components : Discuss the various security related components that must be addressed when implementing any system.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd