As of now Southwest is a stage in front of their rivals. They can ascribe this to the choices they made to limit their cost, their clients have seen the advantages of these choices. Since flights run assuming regardless of the possibility that they are half full, the organization goes out on a limb of gaining low income for that flight. Since the organization remains in an endless value war with its rivals they are compelled to keeps ticket costs low, this could bring about lost income and a plausibility of cutting overhead and creation cost. This could likewise impact the planning of workers. The dread of expanding oil costs still stays high on the organization's radar.
Answer:
Annual depreciation= $8,760
Explanation:
Giving the following information:
Avalon Industries buys equipment for $50,000, expects to use it for Five years, and then sell it for $6,200.
We need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (50,000 - 6,200)/5= $8,760
Answer:
Journal entries
Explanation:
Before passing the journal entries first we have to determine the following amounts
Computation of net proceeds:
Cash received ($175,000 × 94%) $164,500
Add: Reserves amount ($175,000 ×4%) $7,000.
Less: fair value of recourse liability - $4,040
Net proceeds 167,460
Now the gain or loss is
= Net proceeds - Carrying value
= $167,460 - $175,000
= $7,540
Now the journal entry is
Cash $164,500
Due from factors $7,000
Loss on sale of receivables $7,540
To Recourse liability $4,040
To Account receivable $175,000
(Being the sale of receivables is recorded)
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