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dimulka [17.4K]
3 years ago
8

On November 10 of the current year, Flores Mills sold carpet to a customer for $8,500 with credit terms 2/10, n/30. Flores uses

the gross method of accounting for cash discounts.
1. What is the correct entry for Flores on November 10?
Multiple Choice:
A. Accounts receivable 8,500
Sales 8,500
B. Accounts receivable 8,330
Cash discounts 170
Sales 8,500
C. Accounts receivable 8,330
Sales 8,330
D. Accounts receivable 8,500
Cash discounts 170
Sales 8,330
Business
1 answer:
ANTONII [103]3 years ago
8 0

Answer:

Cash A/c Dr                   $8,330

Sales Discount A/c Dr $170

     To  Accounts receivable A/c    $8,500

(Being cash received recorded)

Explanation:

The journal entry is shown below:

Cash A/c Dr                   $8,330

Sales Discount A/c Dr $170

     To  Accounts receivable A/c    $8,500

(Being cash received recorded)

The discount would be

= Accounts receivable × percentage given

= 8,500 × 2%

= $170

And, The remaining amount would be debited to the cash account.

Note: This is the answer but the same is not provided in the given options

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It is important to use real rather than nominal gdp figures when making comparisons of output across time periods because the re
melamori03 [73]

Answer: TRUE

Explanation: Gross Domestic Product ( GDP) can be described as the market value of all goods and services produced in a country within a particular time period which is usually a year.

The equation for finding GDP is given as -

GDP = Consumption + Investment + Government Spending + ( Exports - Imports)

Nominal GDP can be described as the market value of all goods and services produced in a country within a particular time period using current market prices.

Real GDP can be described as the market value of all goods and services produced in a country within a particular time period using base year prices. Using base year prices to calculate real GDP adjusts for inflation.

4 0
3 years ago
The real risk-free rate is 3.05%, inflation is expected to be 3.60% this year, and the maturity risk premium is zero. Ignoring a
natulia [17]

Answer:

Ans. The equilibrium rate of return on a 1-year Treasury bond is 6.65% (please check the explanation)

Explanation:

Hi, well, this type of bonds exist so people can avoid the time value of money risk, in other words, to keep money save from inflation and provide a risk free return at the same time. From a part of the text I can tell that the person who wrote it wanted to add up the risk free rate and the inflation rate, that is 3.05%+3.60% =6.65%.

This is why I wrote this answer, but the truth is that since they are both effective rates (risk free rate and inflation), they need to be add as effective rates, that is:

(1+r(e))=(1+rf)*(1+Inf)

Therefore

r(e)=(1+rf)*(1+Inf)-1

r(e)=(1+0.0305)*(1+0.036)-1=0.0676

So the real equilibrium rate of return is 6.76%, but for the sake of the question, I wrote 6.65%.

Best of luck.

6 0
3 years ago
You open a savings account with a 0.5% per year nominal interest rate, and the economy experiences 3% per year inflation. a. Wha
Firlakuza [10]

Answer:

a. The nominal interest rate is 0.5%, and the real interest rate is -2.5%.

b. The purchasing power of money in the account will reduce.

Explanation:

a. What is the nominal and real annual interest rate on the account? The nominal interest rate is %, and the real interest rate is %.

From the question, we have:

Nominal interest rate = 0.5%

Inflation rate = 3%

In economics, the real is interest rate is calculated as follows:

Real interest rate = Nominal interest rate - Inflation rate = 0.5% - 3% = -2.5%

Therefore, the nominal interest rate is 0.5%, and the real interest rate is -2.5%.

b. What will happen to the purchasing power of the money you place in the account over time? The purchasing power of money in the account will

From the question, the interest rate attached to the savings account is a nominal interest rate. Since the nominal interest rate, unlike the real interest rate, is an interest rate that is not adjusted for inflation, the purchasing power of money in the account will reduce.

3 0
3 years ago
You just acquired a home mortgage for 30 years in the amount of $184,500 at 4.65 percent interest, compounded monthly. How much
alex41 [277]

Answer:

EMI=P*r * (1+r)^n/(1+r)^n-1

Where EMI= equal monthly installments

P=Principal amount

r=rate of interest

n=numer of periods

Explanation:

P=$184,500

r=4.65%/12=.3875%

n=30*12=360

EMI=$184,500*.3875%*(1+.3875%)^360/((1+.3875%)^360-1)

EMI=$951

Interest in first monthly installment=$715

Principal Amount in first monthly installment=$236

7 0
2 years ago
An investment made 10 years ago is worth $100,000. if the annual return over these 10 years was 7.20%, then the original investm
GenaCL600 [577]

The original investment amount was $ 68.56 then annual return on investment is 10 years was 7.20% interest.

What is investment?

Investment definition is assets invested in to build wealth and save money on bank, property and projects for specific time period of money.

PV is a present value, FV is a future value, i is interest, n is number of period

PV= FV/ (1 + i) n

PV= 1, 00,000 / (1+7.20%) 10

PV =68.5650014087

As a result, the original amount of investment is 68. 56

Learn more about on investment, here:

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7 0
1 year ago
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