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:
Dollar profit loss = $3
Holding period return = negative 9%
Explanation:
In order to find the dollar profit or loss return we will add the dividend and selling price because that the dividend plus the selling price is the cash that Travis receives or the positive cash and we will subtract the buying price from it because it is the negative cash flow. So we will add all the positive cash flows and subtract negative cash flow from it in order to find the dollar profit loss or return.
Selling price = 27.65
Dividend = 0.85
Selling price + Dividend= 28.5
Selling price = 31.50
Dollar profit loss or return = 28.50-31.5=-3
Loss= $3
In order to find the holding period return we will divide add the dividend and selling price , subtract buying price from it and then divide it by buying price.
(27.65+0.85-31.5)/31.5= -0.09 = -9%
Holding period return = negative 9%
Answer:
Overhead Rate based on:
Direct labor hours: $12.5 per labor hour
Direct labor expense: 50% of labor cost e.g. $0.5 for every dollar of labor cost
Machine hours: $7.5 per machine hour
Explanation:
Overhead rate is calculated by dividing the total estimated manufacturing overhead to the relevant activity base selected e.g. machine hours, labor hours, labor cost etc.
Overhead rates are calculated for different bases are as follows:
Direct labor hours: $750,000 / 60,000 = $12.5 per hour
Direct labor Expense: $750,000 / 1,500,00 = 50% ($0.5 for every dollar cost of direct labor)
Machine hours: $750,000 / 100,000 = $7.5 per machine hour.
Ching Chong
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The way that the error should be handled in a bank reconciliation is that $900 should be subtracted from the cash balance in the accounting records.
<h3>What is a
bank reconciliation?</h3>
A bank reconciliation statement simply summarizes banking and business activity, reconciling an entity's bank account with its financial records. ·
Since Melon Corp. noticed that a check written by the company for $2,100 was incorrectly recorded in the accounting records as $1,200, $900 should be subtracted from the cash balance in the accounting records.
Learn more about bank reconciliation on:
brainly.com/question/15525383
