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mario62 [17]
3 years ago
13

On April 2, Kelvin sold $40,000 of inventory items on credit with the terms 1/10, net 30. Payment on $24,000 sales was received

on April 8 and the remaining payment on $16,000 sales was received on April 27. Assuming Kelvin uses the net method of accounting for sales discounts what are the journal entries to recorded the trnascations.
Business
1 answer:
motikmotik3 years ago
4 0

Answer:

Explanation:

The journal entry is shown below:

1. Accounts receivable A/c Dr $160

        To Sales discounts forfeited $160

(Being sales discount  is recorded)

The computation of the sales discount is shown below:

= (Sales value - payment made) × discount rate

= ($40,000 - $24,000) × 1%

= $160

2. Cash A/c Dr $16,000

       To Accounts receivable A/c $16,000

(Being cash is received)

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The answer is $224 Hope this helps
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A corporation has 40,000 shares of $25 par value stock outstanding. If the corporation issues a 3-for-1 stock split, the number
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A corporation has 40,000 shares of $25 par value stock outstanding. If the corporation issues a 3-for-1 stock split, the number of shares outstanding after the split will be 120,000 shares.

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3 0
2 years ago
Customer World expects the credit card company to deposit funds in their business account for their sales where a customer uses
Murljashka [212]

Answer:

$88.75

Explanation:

Customer World expects the credit card company to deposit funds in their business account for their sales where a customer uses a credit card to pay. If Customer World earned $90 from a sale and the transaction fee was $1.25, the Customer World should expect $88.75 to be deposited into his business bank account by the credit card company.

I hope the answer is helpful.

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3 0
3 years ago
Cala manufacturing purchases a large lot on which an old building is located as part of its plans to build a new plant. the nego
Andre45 [30]
Given:
280,000 for the land
110,000 for the old bldg
33,500 to tear down old bldg
47,000 to fill and level the land
1,452,000 new bldg
87,800 for lighting and paving a parking area for the new bldg.

Entries:                                    Debit                         Credit
Land                                      470,500
           Cash                                                              470,500
(280,000 + 110,000 + 33,500 + 47,000 = 470,500) 

Building                                   1,452,000
          Cash                                                         1,452,000

Land Improvement                        87,800
           Cash                                                             87,800

Expenses incurred in preparing the land for its purpose is classified under the land account. Land does not depreciate because its useful life is unidentified.

Land improvement account is used for expenses incurred to add functionality to the land and these output has useful life and is depreciated. 




8 0
3 years ago
Read 2 more answers
ignoring differences in the useful lives of investments when evaluating capital expenditure alternatives can distort present val
vodka [1.7K]

Answer:

Yes, it does.

Explanation:

It definitely impacts the present value analysis. If we are evaluating two proposals and we ignore the useful lives of the investments, then

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  • The discount factor to be used will also be inaccurate.
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  • The tax credits and balancing allowances and charges will also be inaccurate.
6 0
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