The amount received as payment in full on June 23 is $686
Explanation:
Given ,
Credit sale of $750
Terms 2/10, net/30
$50 is granted on June 16
= (750-50)x 0.98
= 700 x 0.98
= 686
The payment is reported as a repayment to the accounts receivable. Make an equivalent debit to the bank account to accept the earned money as a payment
Answer:
e. does not always lead to high prices.
Explanation:
Profit-maximization pricing means fixing prices so that total revenue is more as compared to total costs. This pricing strategy is used by a monopolist.
It is the short run or long run process by which the price and output level is determined by the firm that can give the maximum profit.
The price per item has been set higher than its total cost of production make to sure that the company makes a profit on each sale. As a result, the company makes a profit on every sale and to reduce risk and uncertainty factors in business operations.
Profit maximization pricing objective <u>does not always lead to high prices</u>.
Answer:
The correct answer is "yes, I agree with his reasoning"
Explanation:
Zero nominal interest rate joined with a three percent inflation rate yields a negative connotation for the real rate, which is the rate that is important for investment decisiveness.
Answer:
1. Adjusted net income = Ending inventory higher by amount * (1-Tax rate) = $70,000*(1-34%) = $70,000 * 66% = $46,200
Details Amount
Beginning retained earnings for the year 2017 $880,000
Add: Adjusted net income <u>$46,200</u>
Beginning adjusted retained earnings for year 2017 <u>$926,200</u>
2. Tax payable = Inventory * Tax rate = $70,000*34% = $23,800
Date Account Titles and Explanation Debit Credit
Inventory $70,000
Retained earnings $46,200
Tax payable $23,800
(To record adjustment of ending inventory)
