LG Company is a manufacturer fully loaded washing machines. LG promised to deliver 1 dozen of fully loaded washing machines to a newly opened Laundry Shop for a total price of P600,000. The contract contains a clause for free repairs and maintenance for 2 years from date of delivery. The fully loaded washing machines were delivered on Oct. 1, 2019 3. How much revenue from sales of washing machine will LG Company recognize? C. a. P600,000 b. Р300,000 P150,000 d. No sales revenue to be recognized

LG Company is a manufacturer fully loaded washing machines. LG promised to deliver 1 dozen of fully loaded washing machines to a newly opened Laundry Shop for a total price of P600,000. The contract contains a clause for free repairs and maintenance for 2 years from date of delivery. The fully loaded washing machines were delivered on Oct. 1, 2019 3. How much revenue from sales of washing machine will LG Company recognize? C. a. P600,000 b. Р300,000 P150,000 d. No sales revenue to be recognized

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Your firm is considering the purchase of equipment from two suppliers. Supplier A requires payment of $5500 today for each machine. Supplier B requires a payment of $5600 in 6-months for each machine. If you earn 5% APR compounded monthly, and if both suppliers deliver the exact same machines today and have same warranty, etc... which supplier is offering the better financial terms to your firm? A) Supplier A because $5500 > $5600 B) Supplier A, because the FV of $5500 is $5638.94 which is greater than $5600 C) Supplier B, because the PV of $5600 is $5462, which is less than $5500 D) Supplier B, because the PV of $5600 is $5462, which is less than $5600
Hw.73.
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