Answer:
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Given:
<span>MAY 8 - Crump company purchased $1,850 worth of inventory on account from Payne industries ; the terms were 3/15, n/eom.
MAY 9 - Crump also paid freight charges of $95
Payne granted crump a $150 purchase allowance
MAY 17 - Payment in full
Debit Credit
May 8.
Purchases 1,850
Accounts Payable 1,850
May 9
Freight-In 95
Cash 95
Accounts Payable 150
Purchase returns and allowance 150
May 17 - Payment goes beyond the discounting period. No discount is given.
Accounts Payable 1,700
Cash 1,700
(1,850 - 150 = 1,700)
</span><span>"3/15, n/eom" This means that Crump can avail 3% discount when it pays on the 15th of the month and n discount when it pays at the end of the month. </span>
Answer:
B)debit Interest Expense, $200; credit Interest Payable, $200
Explanation:
The adjusted journal entry for the interest expense is shown below:
Interest expense A/c Dr $200
To Interest payable $200
(Being the interest adjusted entry is recorded)
Since we have to record the interest expense from September 1 to September 30 which reflects 1 month and the computation of interest expense is shown below:
= Principal × rate × (number of month ÷ total number of months in a year)
= $40,000 × 6% × (1 ÷ 12)
= $200
A is your answer so then there is less supply than there is demand.
