The answer would be income taxes. The recipient can pull back the assets and pay the pay charges over a five-year time span. The recipient can make required yearly least disseminations throughout the recipient's measurably decided future, paying pay charges as withdrawals are made. The IRS has an outline with respect to future. This choice could enable a more youthful recipient to spread out the withdrawals and along these lines the income taxes over numerous years; The recipient can make required yearly least dispersions through the span of the decedent's factually decided future, paying wage charges as withdrawals are made.
Answer:
The main advantage of the discounted payback period method is that it can give some clue about liquidity and uncertainly risk. Other things being equal, the shorter the payback period, the greater the liquidity of the project. Also, the longer the project, the greater the uncertainty risk of future cash flows.
Since the transaction was on account basis, the journal entry will be:
debit accounts receivable for $625
credit sales $625
the account title accounts receivable was used because the debtor didn't pay for the merchandise and the sales account was used because the company gain income from that transaction.
