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Inessa [10]
3 years ago
8

Parker Company uses the perpetual inventory system. It bought merchandise on account from Beige Inc, invoice no. 342, $20,000; t

erms 1/15, n/30; dated June 25; FOB San Francisco, freight prepaid and added to the invoice, $1,800 (total $21,800). Which of the following journal entries records this purchase transaction?
a. A debit to Merchandise Inventory of $23,600, a credit to Accounts Payable of $23,600
b. A debit to Merchandise Inventory of $21,800, a credit to Accounts Payable of $21,800
c. A debit to Merchandise Inventory of $20,000, a debit to Freight of $1,800, a credit to Accounts Payable of $21,800
d. A debit to Cost of Goods Purchased of $20,000, a debit to Freight Out of $1,800, a credit to Accounts Payable of $21,800
Business
1 answer:
kupik [55]3 years ago
5 0

Answer:

b. A debit to Merchandise Inventory of $21,800, a credit to Accounts Payable of $21,800

Explanation:

Parker Company uses the perpetual inventory system. It bought merchandise on account from Beige Inc, invoice no. 342, $20,000; terms 1/15, n/30; dated June 25; FOB San Francisco, freight prepaid and added to the invoice, $1,800 (total $21,800).

The following journal entries records this purchase transaction:  A debit to Merchandise Inventory of $21,800, a credit to Accounts Payable of $21,800

<u>The reason is that with a perpetual inventory system, transportation costs are added directly to the inventory balance</u>

<u />

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The following information is available regarding the total manufacturing overhead of Olsen Company for a recent four-month perio
Eduardwww [97]

Answer:

$33,000

Explanation:

The calculation of the fixed cost and the variable cost per machine hour by using high low method is shown below:

Variable cost per hour = (High manufacturing overhead cost - low manufacturing overhead cost) ÷ (High machine hours - low machine hours)

= ($198,000 - $153,000) ÷ (110,000 hours - 80,000 hours)

= $45,000 ÷ 30,000 hours

= $1.5

Now the fixed cost is

= High manufacturing overhead cost - (High machine hours × Variable cost per hour)

= $198,000 - (110,000 hours × $1.5)

= $198,000 - $165,000

= $33,000

6 0
3 years ago
question content area the operating expense recorded from uncollectible receivables can be called all of the following except a.
Lyrx [107]

he operating expense recorded from uncollectible receivables can be called all of the following except c. bad receivables expense.

Customers' outstanding debts for goods or services they have received but haven't yet paid for are referred to as accounts receivable. For instance, the amount owing when clients buy things on credit is added to the accounts receivable. It is a debt incurred as a result of a commercial transaction.

The term "accounts receivable" describes the unpaid bills or cash that customers owe a business. The term describes accounts that a company is entitled to get since it has provided a good or service.

Receivables, also known as accounts receivable, are a company's line of credit that typically include terms that call for payments to be made within a somewhat short time frame. Usually, it varies from a few days to a fiscal or calendar year.

To know more about accounts receivable:

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6 0
1 year ago
Darlene Company had checks outstanding totaling $5,400 on its June bank reconciliation. In July, Darlene Company issued checks t
Pie

Answer:

b. $18,000

Explanation:

The computation of outstanding checks is shown below:-

Outstanding checks as of the end of July = Start with outstanding checks as of June + Amount of checks issued in July - Amount of checks that cleared in July

= $5,400 + $38,900 - $26,300

= $44,300 - $26,300

= $18,000

Note, The $300 check was issued by a customer, not Darlene.

So, for computing the outstanding checks as of the end of July we simply applied the above formula.

4 0
3 years ago
Leondra looks over her Algebra homework and says to herself ""I’m probably not going to be able to do this - I’m just not a math
sveticcg [70]

Answer:

Fixed mindset

Explanation:

Mindset could be explained as an individual's psychological state which often transcends into how we perceive challenges, what we can do and what we can't. Usually the ability to solve a puzzle, face and conquer a challenge starts and ends with an individual's mindset as it is where either the strength to execute or depression to walkway is derived.

The growth mindset gives individuals who exhibit the trait the strength and morale to face challenges, instead of backing out without trying, they try to find ways of constantly improving at what seems difficult.

On the other hand, the fixed mindset which is what is exhibited by Leandro could be deemed as a rigid type of notion whereby an individual believes all he knows and all he can do are already fixed, hence anything aside those cannot be successfully executed this kind of individuals fail to try new challenges.

7 0
3 years ago
. Consider an economy that produces only chocolate bars. In year 1, the quantity produced is 4 bars and the price is $4. In year
NikAS [45]

Answer:

Nominal GDP in year 1 = $16

Nominal GDP in year 2 = $25

Nominal GDP in year 3  = $36

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Net export = exports – imports

Nominal GDP is GDP calculated using current year prices

Nominal GDP in year 1 = 4 x $4 = $16

Nominal GDP in year 2 = 5 x $5 = $25

Nominal GDP in year 3 = 6 x $6 = $36

5 0
3 years ago
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