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1 year ago

The entry to record a sale of 1500 with terms of 2/7

1 answer:

4 0

There will be a credit of $1500 to Sales Revenue included in the entry to record a sale for $1500 with conditions of 2/7, n/30.

<h3>Why is there a 2/10 N 30 sales discount?</h3>

Explain the significance of the credit terms 2/10 and n/30. 2% of the invoice amount may be withheld by the buyer if payment is made within ten days of the invoice date. -A 30-day grace period, after which full payment is expected. duration of the discount The time period during which a customer can pay less and receive a financial discount.

The phrase "2/10 net 30" means that the consumer will save 2% if the entire payment is paid within 10 days. If not, full payment must be made in 30 days.

Learn more about credit terms 2/10 and n/30: brainly.com/question/18716859

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Mooradian Corporation's free cash flow during the just-ended year (t = 0) was $150 million, and its FCF is expected to grow at a

Savatey [412]

Answer:

Firm's value of operations = $2,100 million

Explanation:

Using the growth model we have

Free cash flow at t=1 = $150 million + 5% expected growth = $157.5 million

Weighted average cost of capital = 12.5%

Therefore with growth rate = 5%

We have present value of firm's operations = $\frac{157.5 million}{0.125 - 0.05}$ = $\frac{157.5 million}{0.075} = $2,100 million$

Firm's value of operations = $2,100 million

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4 years ago

Abby and Jason are building a new house. They obtained a construction loan of $100,000, which will be rolled over into a convent

GenaCL600 [577]

Answer:

Abby and Jason

The monthly mortgage payment that Abby and Jason will make is:

= $766.58.

Explanation:

a) Data and Calculations:

Construction loan = $100,000

Period of construction = 14 months

Simple interest rate = 0.5% per month

Principal amount after 14 months = $ 107,000 ($100,000 * 0.5% * 14)

Mortgage loan = $107,000

Mortgage period = 20 years

Interest rate = 6% compounded monthly

Terms of payment = monthly

From an online financial calculator, the monthly payment for the mortgage will be:

Monthly Pay = $766.58

Monthly Total

Mortgage Payment $766.58 $183,979.50

Total of 240 Mortgage Payments = $183,979.50

Total Interest = $76,979.50

Mortgage Payoff Date Mar. 2041 if the mortgage commenced on March 1, 2021.

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3 years ago

Because air transport is so expensive the best cargo candidates for air shipment are products with a high cost to weight ratio.

mixas84 [53]

Answer:

True

Explanation:

A high cost-to-weight ratio means the product is expensive but does not weigh much.

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4 years ago

What group is responsible for stepping in to prevent a bank run? banking regulators like the Fed the bank’s depositors the bank’

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The answer is A. banking regulators like the Fed.

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3 years ago

Read 2 more answers

Gatwick Ltd. has after tax profits (net income) of $500,000 and no debt. The owners have a $6 million investment in the business

Ugo [173]

Answer:

Return on equity would increase from 8.33% to 9.50%

Explanation:

The tax rate of 40% is missing from the question.

Return on equity prior to share repurchase=$500,000/$6,000,000

Return on equity prior to share repurchase=8.33%

With the issue of debt finance of $2,000,000, the after-tax interest expense is computed thus:

after-tax interest expense=$2,000,000*10%*(1-40%)=120000

adjusted net income=$500,000-$120,000=$380,000

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adjusted return on equity=$380,000/$4,000,000=9.50%

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3 years ago