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2 years ago

1. What is the effect on the Cash account when a company sells merchandise, but allows the customer to pay later?

1 answer:

8 0

On the day the cash is received, the Cash account increases, and because of the double entry system, the asset account Accounts Receivable is decreased.

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Suppose that the price of a pound of bananas is

monitta

Answer:

$1.50 per pound if bananas

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3 years ago

A small factory produces toilet paper. The annual demand is 360,000 units, and the company produces toilet paper in batches. On

Valentin [98]

Answer:

26,833 units

Explanation:

Optimal production quantity is the quantity at which business incur minimum cost. This is the level of production per batch where the incur the lowest cost.

EOQ =

C = Carrying cost = 10 / 100 = $0.1 per unit

S = Setup cost = $100

D =Annual Demand = 360,000

EOQ = $\sqrt{ \frac{2 X S X D}{C} }$

EOQ = $\sqrt{ \frac{2 X 100 X 360000}{0.1} }$

EOQ = 26,833 units

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3 years ago

Explain the difference between imports and exports.

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Answer:

B. Exports are the goods and services a nation produces and sells to other nations; imports are the goods and services a nation buys from other nations

Explanation:

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3 years ago

The Vintage Laundry Company purchased $6,500 worth of laundry supplies on June 2 and recorded the purchase as an asset. On June

Mazyrski [523]

Answer:

D.) debit Supplies Expense. $5,500; credit Supplies, $5,500

Explanation:

First, let's talk about the amount.

On June 2 they purchased supplies worth $6,500 and recorded it as an ASSET. Debited on "Supplies" Account

Then on June 30, only $1,000 is on hand. That means that $5,500 worth of supplies must have been used (Solved as 6,500 less 1,000)

Now, the entry should reduce the "Supplies" Account since there were only $1,000 left. So it's correct to credit Supplies for $5,500 to reduce $6,500 into $1,000 worth.

The corresponding debit would consequently be "Supplies Expense" since $5,500 worth of supplies was used for the month.

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3 years ago

A bond's ______ is generally $1,000 and represents the amount borrowed from the bond's first purchaser. A bond issuer is said to

blondinia [14]

Answer:

Maturity value; Default; Sinking fund provision; Call provision.

Explanation:

Maturity value is the sum payable to an investor toward the finish of a debt instrument's holding period (maturity date).

Sinking fund provisions means a provision in some bond indentures requiring the backer to set cash aside to reimburse bondholders at maturity.

A call provision is a provision on a bond or other fixed-pay instrument that enables the guarantor to repurchase and resign its bonds.

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3 years ago

1. What is the effect on the Cash account when a company sells merchandise, but allows the customer to pay later?​

1. What is the effect on the Cash account when a company sells merchandise, but allows the customer to pay later?