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Tasya [4]
3 years ago
14

Foote Company recorded a purchase discount of $200 on merchandise the company had purchased on account a few days ago. Foote use

s the perpetual inventory system. Which of the following answers reflects the effects of this event on the financial statements? Balance Sheet Income Statement Statement of Cash Flows Assets = Liabilities + Stockholders’ Equity Revenue − Expense = Net Income A. n/a (200) 200 200 n/a n/a 200 OA B. n/a (200) 200 200 n/a 200 n/a C. (200) (200) n/a n/a n/a n/a (200) OA D. (200) (200) n/a n/a n/a n/a n/a
Business
1 answer:
romanna [79]3 years ago
7 0

Answer:

B. n/a (200) 200 200 n/a 200 n/a

Explanation:

A purchase discount is a contra-expense account which has a credit balance. Expenses have normal debit balances, so a credit balance will decrease the expenses incurred by the company.

E.g. you paid $100 within the discount period (2% discount)

Dr Accounts payable 100

    Cr Cash 98

    Cr Purchase discounts 2

This transaction doe snot affect assets, but it will decrease liabilities by $200 and increase R.E. by $200. Since this is a contra expense account, it will increase revenue and net income. It doesn't generate any additional cash flows.

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Your total sales during a six-hour shift were $1,200. Your individual performance in terms of sales per hour would be:
Anit [1.1K]

Answer:

b. $200

Explanation:

The computation of the individual performance is shown below:

= Total sales ÷ number of shift hours

= $1,200 ÷ 6 hours

= $200

It means that per hour, the individual performance is $200

We simply divide the total sales by the number of shift hours, so that the sales per hour can determined

It shows a relationship between the total sales and the number of shift hours

4 0
3 years ago
Income Statement Imaging Services was organized on March 1, 2018. A summary of the revenue and expense transactions for March fo
IrinaVladis [17]

Answer:

Total Expense:      $ 347,000

Income:    $ 135,000

Explanation:

<u><em>Income Statement Imaging Services </em></u>

<u><em>For the Month Ended March 31, 2018</em></u>

Fees earned                                                                          $482,000

Wages expense                                      $ 300,000

Rent expense                                                $41,500

Supplies expense                                           $3,600

Miscellaneous expense                                   $1,900          

Total Expenses                                                                         $ 347,000

Income                                                                                       $ 135,000 Wages, rent , supplies and miscellaneous expenses are totaled and deducted from the fees earned. Fee earned is the revenue and the expenses are deducted from it. By deducting expenses from revenue we get the income.

7 0
3 years ago
Read 2 more answers
Cost of Goods Sold account is debited and Finished Goods Inventory is credited for A) purchase of goods on account. B) the sale
Firlakuza [10]

Answer:

B) the sale of goods to a customer.

Explanation:

When goods are sold to a customer, the cost of goods sold account is debited by the same value that the finished goods inventory is credited.

For example, suppose a company sells $1,000 worth of goods to a customer, and the sales price is $1,200. The customer pays by cash the full value of the goods. The journal entry would be:

Account                                    Debit           Credit

Cash                                         $1,200

Sales Revenue                                             $1,200

Cost of Goods Sold                $1,000

Finished Goods Inventory                           $1,000

7 0
2 years ago
"Bill thought he had received the best deal on his new car. Shortly after the purchase, Bill started to notice certain disadvant
prohojiy [21]

Answer:

Cognitive dissonance

Explanation:

Cognitive dissonance is the term which occurs or happen when the tension arises among the attitudes or beliefs of the person and the decision that contradicts with those pre- existing thinking modes.

In short, it means that it occurs when a person select among the two equally unappealing or equally attractive options.

So, in this case, Bill thinks that he had received the best deal for the car, but after purchasing, he noticed the disadvantages of the car as he learned regarding the new cars. Therefore, he is experiencing the cognitive dissonance.

6 0
3 years ago
T-account: Accounts ReceivableBeg. Bal. 188,400 105,800 18,090 63,990 5,490 14,790 19,290 Partial list of account balances at th
olganol [36]

Answer:

thats a hard one

Explanation:

7 0
3 years ago
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