Answer:
Regular basic saving accounts
Explanation:
Rainy day fund is called a type of basic regular saving accounts. This account contains around 500 dollars to 1000 dollar It is like a payday loan. It is a type of liquid or we can say that it is like cash.
It is best in a bank account. such as saving account to pay the daily basis debts. Here people can access their money very quickly. When it is spent, you can again start to save for the future happening again.
Answer:
(A) pay within the discount period and recognize a savings.
Explanation:
The given credit terms of 2/10, n/30 means
If the payment is paid within 10 days so 2% discount is given and the total credit period given is 30 days
Suppose we take an example
A buys the merchandise of goods from B for $10,000 on April 1. The payment is doe by A on April 7
So, the net payment is
= $10,000 - $10,000 × 2%
= $10,000 - $200
= $9,800
The $200 shows the discount which A avails and termed as a savings
Answer and Explanation:
The journal entry is shown below:
Bad debts expense Dr $60,000
To Accounts receivable $60,000
(Being the written off amount is recorded)
For recording this we debited the bad debt expense as it increased the expenses and credited the account receivable as it reduced the assets
So for correcting posting and recording we passed accurate entry
