On 7/1, a Company Forecasts the Purchase of 10,000 Units

question 31

Essay

On 7/1, a company forecasts the purchase of 10,000 units of inventory from a foreign vendor. The forecasted cost is estimated to be 150,000 FC. It is estimated inventory will be delivered 11/1. Also, on 7/1, the company purchased a call option to buy 150,000 FC at a strike price of $0.60 anytime during October. An option premium of $2,000 was paid.
Required:
Prepare the journal entries required through 10/1.

Recognize the structure and critical elements of an effective cover letter.

Identify the differences between solicited and unsolicited cover letters and when to use each.

Appreciate the significance of avoiding negative language and focusing on positive, action-oriented wording.

Learn the importance of demonstrating knowledge about the company and industry within the cover letter.

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Definitions:

Stress Tolerance

The ability to remain calm, composed, and effective in challenging or stressful situations, without succumbing to pressure.

Decisive Direction

Clear and firm guidance or instructions on what action to take or decision to make.

Shift Responsibility

The act of transferring accountability or duties from one party to another.

Competencies

A mix of skills, knowledge, and abilities that an individual possesses which are necessary for effective performance in a job or task.