Allied parts was organized on may 1, 2013 and made its first purchase of merchandise on may 3. the purchase was for 2,000 units at a price of $10 per unit. on may 5, allied parts sold 1500 of the units for $14 per unit to baker co. terms of the sale were 2/10, n/60. prepare entries for allied parts to record the may 5 sale and each of the following separate transactions (a) through (c) using a perpetual system.(a) on may 7, baker returns 200 units because they did not fit the customers needs. allied parts restores the units to its inventory.(b) on may 8, baker discovers that 300 units are damaged but are still of some use and, therefore, keeps the units. allied parts sends baker a credit memorandum for $600 to compensate for the damage. (c) on may 15, baker discovers that 100 units are the wrong color. baker keeps 60 of the units because allied parts sends a $120 credit memorandum to compensate. baker returns the remaining 40 units to allied parts. allied parts restores the 40 returned units to its inventory.

Which of the following accurately describes a surplus? a. consumer demand for a certain car is below the number of cars that are produced. b. the production costs for a certain car are below the sale price of that car. c. a reduction in the cost of steel enables a car company to reduce the sale price of its cars. d. a car company tries to charge too high a price for a car and has to reduce the price. 2b2t

Prior to its closing, income summary had total debits of $1,190,500 and total credits of $1,476,300. what purpose is served by the income summary account and what is the nature of the entries that resulted in the $1,190,500 and the $1,476,300? the income summary account is used to the accounts. the $1,190,500 represents the , and the $1,476,300 represents . the company had of $ .

Afirm's before-tax cost of debt, rd, is the interest rate that the firm must pay on debt. because interest is tax deductible, the relevant cost of debt used to calculate a firm's wacc is the cost of debt, rd (1 – t). the cost of debt is used in calculating the wacc because we are interested in maximizing the value of the firm's stock, and the stock price depends on cash flows. it is important to emphasize that the cost of debt is the interest rate on debt, not debt because our primary concern with the cost of capital is its use in capital budgeting decisions. the rate at which the firm has borrowed in the past is because we need to know the cost of capital. for these reasons, the on outstanding debt (which reflects current market conditions) is a better measure of the cost of debt than the . the on the company's -term debt is generally used to calculate the cost of debt because more often than not, the capital is being raised to fund -term projects. quantitative problem: 5 years ago, barton industries issued 25-year noncallable, semiannual bonds with a $1,600 face value and a 8% coupon, semiannual payment ($64 payment every 6 months). the bonds currently sell for $845.87. if the firm's marginal tax rate is 40%, what is the firm's after-tax cost of debt? round your answer to 2 decimal places. do not round intermediate calcu