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san4es73 [151]
3 years ago
12

Chen inc. accepted a two-year non interest-bearing note for $605,000 on january 1, 2016. the note was accepted as payment for me

rchandise with a fair value of $500,000. the effective interest rate is 10%. what is the correct entry to record the note
Business
1 answer:
Sophie [7]3 years ago
3 0

This would be the journal entry to record the transaction for the non-interest bearing note:

January 1, 2016

Debit Notes Receivable 605,000

Credit Discount on notes receivable (605,000 – 500,000) 105,000

Credit Sales Revenue 500,000

 

As for the interest at the end of the month

Debit Discount on notes receivable 2,520.83

Credit Interest Revenue 2,520.83

 

Computation: 605,000 x .10 divided by 24 since it is 2 years

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"is the curse of mature markets whereby products lack any real means of differentiation and customers see competing products as
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Commoditization

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4 years ago
Powers Company reported Net sales of $1,240,000 and average Accounts Receivable, net of $74,500. The accounts receivable turnove
kifflom [539]

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To compute accounts receivable turn over ratio, we simply divide net credit sales over the average accounts receivable.

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= 16.64

The higher the ratio, the better it is in the company. It simply means, the company exercises the effective way to collect its receivable from the customer.

*Net credit sales is derived by deducting sales returns and allowances from gross credit sales. If the problem is silent regarding cash sales, we will assume that the sales made by the period is all at credit.

8 0
3 years ago
The political business cycle refers to Group of answer choices the fact that about every four years some politician advocates gr
kirill [66]

Answer:

the potential for a central bank to increase the money supply and therefore real GDP to help the incumbent get re-elected.

Explanation:

A political business cycle can be defined as a business cycle that typically arises from the manipulation and tweaking of economic policy tools such as fiscal policy and monetary policy by incumbent (serving) politicians, in order to stimulate and enhance the economy of a particular country before an election. Thus, this would go a long way to boost the chances of the candidate representing the particular political party and reelection into office by the people.

Hence, the political business cycle refers to the potential for a central bank to increase the money supply and therefore real GDP to help the incumbent get re-elected.

The Gross Domestic Products (GDP) is a measure of the total market value of all finished goods and services made within a country during a specific period.

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4 0
3 years ago
Aggregate planners attempt to balance Multiple Choice capacity and demand. capacity and costs. capacity and inventories. demand
charle [14.2K]

In the economic world, the aggregate planners are always attempting to balance the capacity and demand.

<h3>Who are the aggregate planners?</h3>

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Therefore, the Option A is correct.

Read more about aggregate planners

<em>brainly.com/question/27095236</em>

7 0
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