Answer:
The correct journal entry to record the payment on July 12 is:
Debit Accounts Payable $1,700
Credit Merchandise $34
Credit Cash $1,666
Explanation:
Credit terms of 2/10, n/30 means that 2% discount for the payment within 10 days and the full amount to be paid within 30 days.
On July 5:
Debit Merchandise $2,000
Credit Accounts payable $2,000
On July 7:
Debit Accounts payable $300
Credit Merchandise $300
On July 12, the company pays and takes the appropriate discount:
2% x ($2,000 - $300) = $34
The company uses a perpetual inventory system, and records purchases using the gross method.
The journal entry to record the payment:
Debit Accounts Payable $1,700
Credit Merchandise $34
Credit Cash $1,666
Answer;
No of spaghetti he purchase 
Explanation:
Given,
Price of iced tea is
per bottle
Price of spaghetti is 
per serving
Let no iced tea is 
Let no of spaghetti =
multiply by 2
(i)
(ii)
(ii)-(i)
No of spaghetti is 100
No of iced tea is 100
The definition of commodity is D. Some examples are gold, silver and copper.
Answer:
Net operating income would be decreased by $137,000
Explanation:
The computation is shown below:
Sales $490,000
Less: Variable expenses ($221,000)
Contribution margin $269,000
Less
Fixed manufacturing expenses ($90,000)
Fixed selling and administrative expenses ($42,000)
Net income $137,000
If the product H58S were dropped than the net operating income would be decreased by $137,000
Answer:
b. surpluses of the commodity will develop.
Explanation:
The equilibrium price is the intersection of the demand and supply curve. At this price, the quantity demanded matches the quantity supplied. There are surplus or shortages in the market.
When the price is set above the equilibrium point, it means the product or service will be too expensive for many buyers to afford. A high price results in reduced demand. If supply is constant, and the demand has declined, the market will experience a surplus of that commodity. Should the price go below the equilibrium point, there would be an increase in demand, causing a shortage of that product.
