Answer:
Dr. Account Payable $5,700
Cr. Discount Income $114
Cr. Cash $5,586
Explanation:
Term 2/10, net/30 means there is a discount of 2% is available on payment of due amount within discount period of 10 days after purchase and net credit period of 30 days.
According to given data
Purchases = $5,700
As the payment is made within discount period, so discount will be availed
Discount = $5,700 x 2% = $114
Amount to be paid = $5,700 - $114 = $5,586
Answer
The agreement is contingent agreement and not the unenforceable.
Explanation:
Under a contingent agreement, certain actions are taken resulting from occurring or non-occurring of certain conditions. Here outcomes are dependent upon happening of events.
Answer:
rust + vinegar = silver gray to black; chewing tobacco + ammonia + water = brown; walnut husks
Explanation:
Answer:
$56,000
Explanation:
The computation of the warranty expense for the month of November is shown below:
Warranty expense = Number of printers × Estimated percentage of defectives parts × Average cost per printer
= 20,000 printers × 2% × $140
= 400 × 1460
= $56,000
We simply multiplied the number of printers with the estimated percentage and the average printer cost so that the warranty expense could come
Answer:
a. Project A requires an up-front expenditure of $1,000,000 and generates a net present value of $3,200.
Explanation:
a.
The company should accept project A because it provides a positive net present value of $3,200 that is the highest among all the projects.
b.
When the IRR of a project is lower than the required rate of return of the project, it will generate the negative net present value because at IRR the net present value of the project will be zero and at a higher rate than IRR it will be negative.
c.
The project with a profitability index of less than 1 generates a negative NPV because the present value of future cash flows is less than the initial cash outflow.
d.
Project D also generates a positive net present value but it is lower than project A. So, after comparing the results we will choose the project with higher NPV.
