The required entries are as follows:
Dr. Cost of goods sold $770
Cr. Inventory $770
Dr. Accounts receivable $1,260
Cr. Sales revenue $1,260
What entries are required for sale of merchandise?
When merchandise is sold, the company's inventory reduces and cost of goods sold increases ,hence, the appropriate entries are to debit cost of goods sold in the income statement and credit the inventory account in the balance sheet.
Also, to account for sale on account, which means credit sales, the revenue account is credited with the sales value whereas the account receivables which represents claim from the customer is debited, this would happen for every transaction because the inventory system is perpetual.
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Consumer credit dates back to colonial times.
<h3>What is consumer credit?</h3>
Money that customers can borrow to pay for products or services is known as consumer credit. Customers who have access to credit can make purchases today and pay for them over time. Consumers can obtain credit from banks, financial organizations, and companies.
Consumer credit is governed by federal and state rules that shield borrowers from dishonest lending practices and stop companies from treating them differently based on non-financial considerations.
Examples of consumer credit are credit cards, education loans, mortgages, etc.
Consumer credit has been around since the colonial era when farmers used it frequently.
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Answer:
The size of the dividend per share of stock depends on: The corporation's profit
Dividend per share is calculated by: Total dividend / Total shares outstanding,
Which means that dividend per share will increase if the total dividend increases.
Meanwhile, the total dividend will be increased if the company gains more profit
Given; Equipment and building = $800,000Fair value of the land = $100,000Fair value of the building = $700,000Fair value of the equipment = $200,000
Solution;
$800,000 x [$100,000/($100,000 + $700,000 + $200,000)] = $80,000.
The company would record the land of $80,000
Answer: B. Each firm Charges a HP
Explanation:
Nash Equilibrium is a point where there is no incentive from deviating for each firm to deviate or change its strategy.
Firms reach Nash Equilibrium Point when they both charge high price (HP). When both firms charge high price (HP) each firm will earn 10 million dollars at this point there is no incentive for either firm to change and charge lower price because they will earn $ 1 million. Each firm will just choose to charge high price regardless of what the other firm is doing.
