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Phantasy [73]
3 years ago
7

Sarah and Luke each purchased $125 of merchandise from Owens Grocers on account. The terms of both sales were 1/7, n/30. Account

s that are not paid within 30 days are subject to a 2% monthly interest charge. If Sarah paid in 3 days and Luke paid in 36 days, what would be the difference in the merchandise company’s records on the date the customers paid in full?
Business
1 answer:
Tatiana [17]3 years ago
7 0

Answer:

Sarah inventory $ 123.75

Luke inventory  $  125.00

Explanation:

<u>Sarah</u>

125 dollars x 1% discount = 1.25 dollars

Inventory:

125 nominal - 1.25 discount = 123.75

Sarah will enter the inventory for the price it paid to acquire it which is 123.75

<u>Luke</u>

As look paid after the discount period the inventory will be valued at nominal:

125 dollars nominal

<u>the charge is considered interest expense</u> it will not be capitalize through inventory.

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Answer:

see below

Explanation:

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7 0
3 years ago
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Shalnov [3]

Answer:

Breaking paragraphs into shorter chunks.

Explanation:

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4 0
3 years ago
Financing With Stock. Chapman Co. is a privately owned MNC in the U.S. that plans to engage in an initial public offering (IPO)
natima [27]

Answer:

A financial manager of Chapman Co. recommends that it wait until the world stock markets recover before it issues stock.

Explanation:

The reason for this is because if the initial public offering IPO is issued now, it can only be issued at a very low price and as a result the company will not be able to raise much funds as revenue and the consequence of this at the same time is that the valuation of the company will decline.  

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8 0
3 years ago
Yocum Company purchased equipment on January 1 at a list price of $120,000 and received a $2,400 cash discount. Yocum paid $6,00
egoroff_w [7]

Answer:

The correct answer is $129,360.

Explanation:

According to the scenario, the given data are as follows:

List price of equipment = $120,000

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concrete slab = $4,000

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= $129,360

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3 years ago
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RSB [31]

Answer:

b

Explanation:

8 0
3 years ago
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