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\"A relatively small number of machines have been shipped on consignment. These

ID: 2447307 • Letter: #

Question

"A relatively small number of machines have been shipped on consignment. These transactions have been recorded as ordinary sales and billed as such. On December 31 of each years, machines were billed and in the hands of consignees amounted to:

2011            $6,500

2012             None

2013            $5,590

Assume that the gross profit rate is 20% and the inventory at the end of each year included the machines which were at on consignment at December 31."

What would the adjusting entries be for BOTH the books are still open at the end of 2013 AND the books have been closed at the end of 2013?

Explanation / Answer

How many units would have to be sampled to be 95% confident that you can estimate the fraction of defective parts within 2% (using the information from today’s sample

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