B. Be called in for an interview because that's the first thing they see and it gives the general details
Answer:
A. The company would debit the Allowance account instead of Purchase Returns.
Explanation:
In the management of purchases transactions, a company will maintain several other accounts such as purchase returns and purchases allowance.
Purchases allowance will include allowances such as discount received and other compensations from suppliers. The allowances reduce the net value of the purchases. i.e., when calculating the net purchases, one has to deduct the purchases allowed amount. When the business receives a purchase allowance, the amount will increase the purchases allowance account. The accountant will, therefore, debit that account.
Purchases returns are goods that the company had purchased from suppliers but have returned them for some reason. They could be defective or inappropriate.
Answer:
Explanation:
The journal entries are shown below:
a. Cash A/c Dr $15,000
To Games revenue A/c $15,000
(Being cash collected)
b. Cash A/c Dr $3,000
Accounts receivable A/c Dr $5,000
To Sales revenue $8,000
(Being cash received for selling of equipment)
c. Cash A/c Dr $4,000
To Account receivable $4,000
(Being cash received for merchandise sold by the company)
d. Cash A/c Dr $2,500
To Unearned revenue A/c $2,500
(Being deposit received for the upcoming fall season)
Answer:
The correct answer is C. Common fixed costs.
Explanation:
A fixed cost is an expense that the company must incur, even if the company operates at medium speed, or does not, which is why they are so important in the financial structure of any company.
This is the case, for example, of payments such as leasing, since this, if nothing is sold, must be paid. It also happens with almost all labor payments, public services, insurance, etc.
Perhaps the main component of fixed costs is labor, therefore, it is not surprising that companies struggle every day for greater labor flexibility that allows them to convert those fixed costs into variables.
