The unadjusted trial balance for sierra corp. is shown below.

sierra corporation trial balance october 31, 2017
debit credit
cash $15,200
supplies 2,500 `
prepaid insurance 600
equipment 5,000
notes payable $5,000
accounts payable 2,500
unearned service revenue 1,200
common stock 10,000
retained earnings 0
dividends 500
service revenue 10,000
salaries and wages expense 4,000
rent expense 900
$28,700 $28,700
assume the following adjustment data.

1. supplies on hand at october 31 total $500.
2. expired insurance for the month is $100.
3. depreciation for the month is $75
4. as of october 31, services worth 4\$800 related to the previously recorded unearned revenue had been performed.
5. services performed but unbilled and no receivables have been recorded at october 31 are $280.
6. interest expense accrued at october 31 is $70.
7. accrued salaries at october 31 are $1,400

prepare the adjusting entries for the items above.

Southeastern bell stocks a certain switch connector at its central warehouse for supplying field service offices. the yearly demand for these connectors is 15,000 units. southeastern estimates its annual holding cost for this item to be $25 per unit. the cost to place and process an order from the supplier is $75. the company operates 300 days per year, and the lead time to receive an order from the supplier is 2 working days. a) find the economic order quantity. b) find the annual holding costs. c) find the annual ordering costs. d) what is the reorder point?

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