Answer:
A. Work-in-Process Inventory
Explanation:
What a credit to finished goods inventory actually means is that there was an increase in the number of finished goods. If finished goods increased, it means that the number of goods still being worked on (Work-in-process inventory) has decreased (debit). Thus, this transaction must be accompanied by a debit to Work-in-Process Inventory.
They are using the Dual income and no kids method
Answer:
$18,400
Explanation:
A/R $20,100
Less: Allowance for doubtful accounts ($1,700)
net realizable value of A/R $18,400
The write off amount is already included in allowance for doubtful accounts on provision basis therefore it can't be separately deducted again.
Answer:
Predatory pricing.
Explanation:
When Lofonift Inc. introduced its flagship product, an MP3 player, it captured the MP3 player market by offering its product at the lowest price in the market. This gradually forced many of its competitors out of business. Once its competitors were out of business, Lofonift Inc. raised its prices. In this scenario, Lofonift Inc. most likely indulged in predatory pricing.
Predatory pricing is a strategy used by some business owners to reduce the cost of a particular commodity or item to the lowest possible amount such that the available competitors will be driven out of business.
