Answer:
The answer is 20.55 days
Explanation:
Solution
Given that:
Annual sales =$627,200
Average accounts receivable =$35,300
Now
The accounts turnover ratio (receivable) = Sales/Average accounts receivable
Accounts receivable turnover ratio = $627,200/$35.300
=17.76 times
Thus
Number of days payment receives = 365/ Accounts receivable turnover ratio =365 days/17.76 times
=20.55 days
Therefore The company takes 20.55 days to get payment for its services
Answer:
Explanation:
The adjusting entry for supplies is shown below:
Supplies expense A/c Dr $115
To supplies A/c $115
(Being adjusted entry recorded)
The trial balance show a supplies balance of $148 and the supplies on hand were $33, so the adjusted supply balance would be equal to
= Supplies balance - supplies on hand
= $148 - $33
= $115
<span>This would be a way to lower the money supply. By discouraging bank loans, there becomes fewer overall dollars in the hands of the general public. Fewer dollars held by people overall equals a smaller overall money supply. Bank loans to the public would be a way of increasing the money supply, in the opposite instance.</span>
Answer:
$1,575
Explanation:
We will clasify the item "revenue" or "not":
- Received $1,050 cash for services provided to a customer during July -> yes, this is revenue
- Received $5,000 cash investment from Bob Johnson : not revenue
- the owner of the business Received $900 from a customer in partial payment of his account receivable which arose from sales in June: not revenue for July, but June which was booked in June revenue already
- Provided services to a customer on credit, $525: yes, this is July revenue though it's still on account receivable
- Borrowed $7,500 from the bank by signing a promissory note: not revenue
- Received $1,400 cash from a customer for services to be rendered next year: not July revenue, it's customer advace and might be next year revenue once services are completed
So the amount of revenue for July = Received $1,050 cash for services provided to a customer during July + Provided services to a customer on credit, $525
= $1,050 +$525
= $1,575
Answer:
Company's net income will increase by $2500 if the product line is discontinued.
Explanation:
From the data given:
Sales 25000
variable cost (less) 19000
contribution margin 6000
Fixed costs
directed fixed costs 7000
allocated fixed costs 5000
net income -6000
Fixed cost savings 7000
rental revenue 1500
total savings if discontinued 8500
contribution margin (less) 6000
net income increased by 2500
