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Ratling [72]
3 years ago
7

Jervis sells $3,900 of its accounts receivable to Northern Bank in order to obtain necessary cash. Northern Bank charges a 3% fa

ctoring fee. What entry should Jervis make to record the transaction
Business
1 answer:
elixir [45]3 years ago
3 0

Answer:

Dr cash                           $3783

Dr factoring fee expense  $177

Cr accounts receivable               $3900

Explanation:

The cash proceeds from the factoring arrangement would be 97% of the value of the receivables since 3% is the factoring fees expenses to be incurred.

Cash proceeds=$3900*97%=$ 3,783.00  

Factoring fees expense=$3,900.00-$3,783.00=$117

Cash account and factoring fees expense would be debited with $3783 and $117 respectively, while accounts receivable is credited with $3900

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The receiving department of Owen has three activities: unloading, counting goods, and inspecting. Unloading requires a forklift
SpyIntel [72]

The cost of unloading is $52,000  

Explanation:

Cost is the cash interest that a corporation has expended on sales and accounting to manufacture it. Within an organization, costs represent the amount of money spent on manufacturing or developing a good or service. Price requires no benefit premium.

Resource Unloading Equipment $15,000

Fuel $2,000

Operating Labour = (25% × [4 $35,000] = $35,000) ​

                              = $35,000

Total = $35,000+$15,000 +$2,000  

       = $52,000

5 0
4 years ago
Which of the following is a non-price determinant of demand?
Norma-Jean [14]
Option C wearing straw hats become popular
6 0
3 years ago
Following is information on two alternative investments being considered by Jolee Company. The company requires a 6% return from
Tema [17]

Answer and Explanation:

The computation of the net present value is presented in the attachment below:

For project A, the net present value is $91,771.53 and for project B, the net present value is $79,390.69

It is computed after considering the discounting factor that comes from

= 1 ÷ (1 + discount rate)^number of years

for year 1, it is

= 1 ÷ (1 + 0.06)^1

The same applied for the remaining years

6 0
4 years ago
AI Rubber is one of four suppliers of molded rubber products and has a 45% market share. The market for its products is shrinkin
klasskru [66]

Answer:

(B) a cash cow

Explanation:

Based on the information provided within the question it can be said that in this scenario AI Rubber would be considered a cash cow. This term refers to a business and/or product that generates a steady revenue or profit for the owning company or individual. Since AI Rubber has a 45% market share we can say that they are the cash cow of the corporation.

8 0
4 years ago
Sandusky Inc. has the following costs when producing 100,000 units: Variable costs $600,000 Fixed costs 900,000 An outside suppl
goldenfox [79]

Answer:

$6.30

Explanation:

For computing the unit price, first we have to determine the difference in cost which is shown below:

= $150,000 - $120,000

= $30,000

Now the break even price would be

= Variable cost + cost difference

= $600,000 + $30,000

= $630,000

So, the unit price would be

= Break even price ÷ number of unit produced

= $630,000 ÷ 100,000 units

= $6.30

8 0
3 years ago
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