1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alecsey [184]
3 years ago
13

Stella, Inc. purchased 75 telescopes for $25 each from Luna Co. When they unpacked the telescopes, Stella found

Business
1 answer:
cupoosta [38]3 years ago
8 0

Answer:

A. The company would debit the Allowance account instead of Purchase Returns.

Explanation:

In the management of purchases transactions,  a company will maintain several other accounts such as purchase returns and purchases allowance.

Purchases allowance will include allowances such as discount received and other compensations from suppliers.  The allowances reduce the net value of the purchases. i.e., when calculating the net purchases, one has to deduct the purchases allowed amount. When the business receives a purchase allowance, the amount will increase the purchases allowance account. The accountant will, therefore, debit that account.

Purchases returns are goods that the company had purchased from suppliers but have returned them for some reason. They could be defective or inappropriate.

You might be interested in
When considering sales tax, more elastic demand results in _____
AnnZ [28]

Answer:

a. more deadweight loss and less revenue

Explanation:

Sales tax increases the price of a good or service.

Demand is elastic if a small change in price has a greater effect on the quantity demanded.

If a sales tax is imposed on a good or service, the price of the good would increase and become more expensive. This would lead to a fall in quantity demanded and an increase in deadweight loss and a loss of revenue.

I hope my answer helps you

4 0
2 years ago
When targeting customers of the consumer population to market a
Delicious77 [7]

Answer:

The correct answer is A

Explanation:

Demographics information is the term which is described as the statistical data regarding the characteristics of the population like income, age and gender.

When the data assembles regarding the ages of the people and the genders, it would be an example of the information to be assembled regarding demographics.

Therefore, when the company want to target the customers of the consumer population to the market, the kind of the segmentation will help the company is the demographic information.

4 0
3 years ago
Bubble Inc., a chewing gum manufacturer, specifically targets children in its advertisements. In its latest advertisement, the c
earnstyle [38]
<h3>Bubble Inc., a chewing gum advertisement represents the brand's Unique selling proposition. </h3>

Explanation:

The Unique Selling Proposition, or Unique Selling Point (USP), is a marketing term that refers to any attribute or feature of a product or service that separates it from the competition and emphasizes its specific customer benefits.

Businesses with a unique selling proposition stand for something particular, and it becomes Bubble Inc., known for. A clearly defined USP can be an important tool for helping Bubble Inc., marketing strategies and concentrate them on setting their brand and goods apart from their competition.

3 0
3 years ago
Let us suppose that a hospital wants to set their fees for an overnight stay such that the contribution margin on a hospital roo
Rainbow [258]

Answer: $756

Explanation:

Based on the information given in the question, the fee that should be charged to obtain a contribution margin of 18% will be:

Target fee = Variable cost/(1-Contribution Margin)

= $620/(1 - 18%)

= $620/(82%)

= $620/0.82

= $756

They should charge $756

3 0
3 years ago
Suppose that five years ago you borrowed $300,000 using a 30-year fixed-rate mortgage with an annual interest rate of 10% with m
Elenna [48]

Answer:

Please check the explanation below.

Explanation:

Rate of Interest =10% or 0.83% monthly

Monthly Payment under this plan=PMT(0.0083, 360, 300000) =$2,632.71

Loan outstanding after 5 years of payments =$289,723

New Interest Rate =8.5% or 0.7083% monthly

Balance Tenure= 25 years

New Monthly Installment =PMT(0.007083,300,289723) =$2,332.93

Monthly savings in installment reduction =$2,632.71 - 2,332.93 =$299.78

a. Net present value of refinancing = -0.05x289,723 + 299.78x{(1-(1+0.007083)-300)/0.007083}

                                                  = -14,486.15 + 299.78x124.1886

                                                  = -14,486.15 + 37,229.25

                                                  = 22,743.10

b. With new monthly installment, balance outstanding at the end of 8th year =$278,258

Net Present Value of Refinance = -0.05x289,723 + 299.78x{(1-(1+0.007083)-36)/0.007083}

                                                  = -14,486.15 + 299.78x31.68

                                                  = -14,486.15 + 9,446.46

                                                  = -4,989.68

c. For refinance loan to have net present value positive, let n payments are required,

NPV = -0.05x289,723 + 299.78x{(1-(1+0.007083)-n)/0.007083}

14,486.15 = 299.78x{(1-(1+0.007083)-n)/0.007083}

14,486.15x0.00783/299.78 =(1-(1.007083)-n)

0.3423 = 1-(1.007083)-n

(1.007083)-n = 0.6577

(1.007083)n = 1.5204

Taking Log both sides,

n = log(1.5204)/log(1.007083)

n = 59.36

Hence, he would need to make 60 payments for making NPV of refinance as zero.

3 0
3 years ago
Other questions:
  • Who has outlook mine is william56453 to help me
    13·1 answer
  • The threat of substitutes is the most significant force in the _____ industry structure introductory decline growth mature
    11·1 answer
  • The specific protection that the insurer provides to the policy holder is known as which of the following?
    7·2 answers
  • For risk-specific projects, we typically analyze other firms that are already in the new market where we are moving to infer our
    14·1 answer
  • Dom, an EZ Baked Goods salesperson, follows Flora, a salesperson for Goody Pastries, Inc, as she attempts to make sales to food
    7·1 answer
  • According to an article in the New York Times, the Venezuelan government "imposes strict price controls that are intended to mak
    10·1 answer
  • ____________is defined by Sage as "a system of interdependent ideas that explain and justify particular political, economic, mor
    7·1 answer
  • Which question can help a writer analyze a prompt and develop a claim for an argumentative essay?
    12·1 answer
  • What is the moving force of air
    7·1 answer
  • The guy who put letters in math is the reason im failing in geometry im just like
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!