Answer:
<u>November 1</u>
Loaned $18,600 cash to Manny Lopez on a 12-month, 10% note.
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Dr Notes receivable 18,600
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Cr Cash 18,600
<u>December 11</u>
Sold goods to Ralph Kremer, Inc., receiving a $47,250, 90-day, 8% note.
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Dr Notes receivable 47,250
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Cr Sales revenue 47,250
<u>December 16</u>
Received a $58,200, 180 day, 9% note in exchange for Joe Fernetti’s outstanding accounts receivable.
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Dr Notes receivable 58,200
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Cr Accounts receivable 58,200
<u>December 31</u>
Accrued interest revenue on all notes receivable.
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Dr Interest receivable 728.25
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Cr Interest revenue 728.25
How to calculate interest:
Lopez: $18,600 x 10% x 2/12 = $300
Kremer: $47,250 x 8% x 20/360 = $210 (using a 360-day year; 20 days)
Fernetti: $58,200 x 9% x 15/360 = $218.25 (using a 360-day year; 15 days)
Total $728.25
Answer:
Option C 30 Percent Time
Explanation:
Thirty percent of the management time is spent on marketing the products because the market is getting crowded with suppliers and getting sales has become difficult. Many firms focus more on marketing of its product because of tough competition and because of the differentiation that they are offering which the rival can not match.
Answer:
D- income statement accounts are temporary accounts and do not retain their balances from one period to the next.
Explanation:
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