Answer:
there are no available options, but the complete journal entry to record a credit card sale is:
Dr Cash account 98% of sale
Dr Credit card fees 2% of sale
Cr Sales revenue 100% of sale
Explanation:
Since VISA payments are automatic, you can debit cash directly. There is no need to debit accounts receivable and then once the payment is confirmed, debit cash. Some credit cards do not pay automatically, and in those cases you should debit accounts receivable.
Instead of credit card fees, some people use credit card discount, or credit card expense, but all these accounts are basically the same. They are all expense accounts.
Answer:
d. $91,250
Explanation:
We can calculate variable costs by using the contribution margin ratio formula.
Contribution Margin Ratio= Sales revenue Less Variable Costs/Sales revenue
45%= $ 425,000- Variable Costs / $ 425,000
45% * $425,000= $ 425,000 -Variable Costs
$ 191250= $ 425,000- Variable Costs
Variable Costs = $ 425,000- $ 191250
Variable Costs = $ 233750
Sales $ 425,000
Variable Costs 233750
Fixed Costs= $ 100,000
Income from Operations= $ 91250
The process is known as REINSTATEMENT.
A reinstatement is said to occur when a defaulting borrower brings the delinquent loan current in one bulk. It stops a foreclosure and allows the borrower to pay all the money he has been owning. Once the loan has been reinstated, the borrower resumes installment payment of the debt.
Answer:
$2,600 in the Accounts Receivable Dr./Sales Cr. column and $1,700 in the Cost of Goods Sold Dr./Inventory Cr. column.
Explanation:
If we assume that Maxie's Game World uses a perpetual inventory system, the appropriate journal entries should be:
Date XXX, merchandise sold on credit to client YYY, terms 1/10, n/30
Dr Accounts receivable 2,600
Cr Sales revenue 2,600
Dr Cost of goods sold 1,700
Cr Merchandise inventory 1,700
Answer:
$300 i.e irrecoverable cost of old printer
Explanation:
Sunk costs refer to those costs incurred in the past which can no longer be recovered. Such costs are considered as irrelevant in decision making process since they have no current or future implications.
For example, research and development costs incurred by an enterprise in the past represent sunk costs since those costs can no longer be recovered and secondly have no current or future implications w.r.t investment decisions.
In the given case, the cost incurred in purchase of old printer is a sunk cost, incurred in the past. The irrecoverable part of the said cost i.e $350 less $50 i.e $300 represents sunk cost. Also, the expenditure on old printer's cartridges which costed $80 apiece would be regarded as a sunk cost.
This cost of $300 cannot be recovered and would be considered irrelevant w.r.t the decision of purchasing a new advanced printer.