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
xxMikexx [17]
3 years ago
10

Waterway Industries buys a delivery van with a list price of $60000. The dealer grants a 13% reduction in list price and an addi

tional 1% cash discount on the net price if payment is made in 30 days. Sales taxes amount to $860 and the company paid an extra $760 to have a special device installed. What should be the recorded cost of the van?
Business
1 answer:
krek1111 [17]3 years ago
5 0

Answer:

Cost of the VAN <em>$53.298‬</em>

Explanation:

We have to enter the van as the cost for a cash purchase and all other neccesary cost to get the van ready for use and in company's possesion.

The financing cost (interest) should be excluded as are not part of the cost the company can chose to take them or not.

list x reduction = invoice

invoice  less discount = cash price

60,000 x (1 - 0.13) x (1 - 0.01) = 51.678‬

to this, we add up the sales tax and the extra cost for the device

51,678 + 860 + 760 = <em>53.298‬</em>

You might be interested in
Maxie's Game World sold games to a customer on credit for $2,600, terms 1/10, n/30 and the cost of the games was $1,700. When re
aleksandrvk [35]

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

7 0
3 years ago
The Richmond Corporation uses the weighted-average method in its process costing system. The company has only a single processin
Digiron [165]

Answer:

$95,400

Explanation:

Step 1 : Find  the equivalent units of production in Ending Work in Progress

Materials = 18,000 x 100 % = 18,000 units

Conversion costs = 18,000 x 60 % = 10,800 units

Step 2 : Calculate the Cost of units in Ending Work in Progress

Cost of units in Ending Work in Progress = 18,000 x $2.75 + 10,800 x $4.25

                                                                    = $95,400

Conclusion :

The ending work in process inventory was $95,400.

3 0
2 years ago
I prefer situations where everyone has to work together to reach a goal. Agree or Disagree?
Cloud [144]
Agree, since two minds work better than one.
4 0
3 years ago
Situation analysis is an ongoing process, referred to as __________.
Veronika [31]
<span>The answer is 'scanning the environment'. Environmental scanning is a process that systematically surveys and interprets relevant data to identify external opportunities and threats.</span>
3 0
3 years ago
Can someone please help me
Kisachek [45]
General skills i think
8 0
3 years ago
Other questions:
  • Anthony picked up a package of paper plates and noticed that there was a coupon stuck onto the package that stated, "Save 50 cen
    15·1 answer
  • An employer has the right to monitor workers electronic communications if
    11·1 answer
  • Matthew Simpson and others created and operated a series of corporate entities to defraud telecommunications companies, creditor
    7·1 answer
  • In an unregulated, competitive market consumer surplus exists because:___________.
    13·1 answer
  • On June 1, 2021, Royal Property Management entered into a one-year contract to oversee leasing and maintenance for an apartment
    9·1 answer
  • How many of the following items are found on the balance sheet, rather than the income statement?
    11·1 answer
  • On January 1, 2020, Harter Company had Accounts Receivable $139,000,
    10·1 answer
  • During a company's first year, the asset account, Office Supplies, was debited for $2,600 for the purchases of supplies. At year
    14·1 answer
  • The decedent and her only child were involved in a plane crash. Neither was alive when the emergency team reached them. The chil
    12·1 answer
  • What is implied if a firm is losing money?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!