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Reika [66]
3 years ago
9

DonCo, Inc. sold merchandise on January 14, and accepted a 90-day, 5% promissory note in the amount of $5,000. On January 14, th

e entry to record this transaction would include a debit to ________.
Business
2 answers:
frozen [14]3 years ago
8 0

Answer:

debit to Notes receivable account in the amount of $5000

Explanation:

THE debit of $5000 goes to the Notes receivable account because the interest rate is note considered but the interest rate is been considered later when the payment of the promissory note is due.

The Notes Receivable account is used to record transaction made which are neither cash nor Credit but are done with promissory notes. promissory notes transaction cannot be recorded under accounts receivables  debited or under cash receivable accounts debited

svetoff [14.1K]3 years ago
4 0

Answer:

The required entries on 14 January is as follows:

Dr Notes receivable    $5,000

Cr Sales                                     $5,000

Explanation:

No doubt by selling the merchandise a sale transaction has been discharged since the ownership of the goods has changed hands between the seller and the buyer,hence the seller can record a sale by crediting sales account.

However, since the cash has not been received nor is the transaction a mere credit sale where accounts receivable would been debited,neither the cash nor accounts receivable can be debited.

The debit goes to the notes receivable account, without considering the interest as the interest is considered later on when payment becomes due.

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1. A parent sells merchandise to its subsidiary at a markup of 20% on cost. In the current year, the subsidiary had $120,000 in
NARA [144]

Answer:

The subsidiary reports cost of goods sold at A. $660,000.

Explanation:

Cost of goods sold is the direct cost of producing or purchasing the goods sold by a business. The formula for cost of goods sold is as follows:

Cost of goods sold = Opening inventory + Purchases - Closing inventory

The subsidiary calculates its cost of goods sold as follows.

Opening inventory           $120,000

Add: Purchases                $720,000

Less: Closing inventory    ($180,000)

Cost of goods sold           $660,000

Therefore, the correct option is A. $660,000.

6 0
3 years ago
Demand curves slope___ because as prices increase and other things remain
GenaCL600 [577]
I think the answer is Downwards;increases
8 0
3 years ago
Alpha Company is looking at two different capital​ structures, one an​ all-equity firm and the other a levered firm with ​$4.6 m
Aleks [24]

Answer:

The break-even EBIT using EPS is $1,288,000.

Explanation:

the break-even EBIT using EPS is the EBIT that will brings EPS under two different capital structure equal.

Denot X is the EBIT.

* We have:

+ EPS in all-equity firm = X/460,000

+ EPS in levered firm = ( X - interest rate)/230,000 = ( X - 4,600,000 x 14%)/230,000 = (X - 644,000) / 230,000.

* We have the equation:

X/460,000 = (X-644,000)/230,000 <=> X/460,000 = 2.8 <=> X = $1,288,000.

So, the break-even EBIT using EPS is $1,288,000.

8 0
3 years ago
Globalization has led to: Group of answer choices lower operational efficiency, as firms must transport raw materials and finish
jekas [21]

Answer: Option D

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Due to globalization  a consumer of India can enjoy a product or service provided by a supplier of america. Thus, the competition increases to its best because off globalization. Therefore, the consumers are willing to purchase the best product in the market. resulting in increase in quality and decrease in cost.

Hence from the above we can conclude that the correct option is D.

4 0
3 years ago
The banking system receives a new cash deposit of $250,000. total deposits eventually rise by $1 million. the value of the reser
never [62]

Cash deposit received by bank= $250,000

Total deposits= $1,000,000

The Reserve ratio will be 0.25

The amount of reservable liabilities that commercial banks must keep onto rather than lend out or invest is known as the reserve ratio. The central bank of the nation, in this case, the Federal Reserve in the United States, sets this criterion. It is often referred to as the ratio of cash reserves.

The reserve requirement, which is frequently used interchangeably with the reserve ratio, refers to the minimum amount of reserves that a bank must maintain.

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3 0
2 years ago
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