Rachel Praia opened a business. Record the transactions for the first month of operations.

A. Ms. Praia invested $40,000 cash in the business.
B. Purchased a car for $32,000. Paid $10,000, balance due in 30 days.
C. Purchased a computer on account, $7,000.
D. Purchased a second computer and paid cash, $12,000.
E. Made $10,000 payment on amount due on car.

Varto company has 9,400 units of its sole product in inventory that it produced last year at a cost of $23 each. this year’s model is superior to last year’s, and the 9,400 units cannot be sold at last year’s regular selling price of $42 each. varto has two alternatives for these items: (1) they can be sold to a wholesaler for $8 each, or (2) they can be reworked at a cost of $251,100 and then sold for $34 each. prepare an analysis to determine whether varto should sell the products as is or rework them and then sell them.