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Cerrena [4.2K]
3 years ago
14

Merry Maidens Cleaning generally charges $300 for a detailed cleaning of a normal-size home. However, to generate additional bus

iness, Merry Maidens is offering a new-customer discount of 10%. On May 1, Ms. E. Pearson has Merry Maidens clean her house and pays cash equal to the discounted price. Required: Record the revenue recognized by Merry Maidens Cleaning on May 1. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Business
1 answer:
Kipish [7]3 years ago
7 0

Answer:

The required entries relating to revenue recognized by Merry Maidens Cleaning on May 1 are:

Debit Cash [$300 x 0.9]                        $270

Credit Service revenue                         $270

<em>(To recognize the service revenue from house cleaning)</em>

Explanation:

Merry Maidens Cleaning offers service discount of 10% on a detailed cleaning of a normal-size home and charges $300, generally. This means, on May 1, Ms. E. Pearson was charged $270 ($300 x 0.9). Since the customer paid cash on the same date, the company would recognize it by debiting cash (for receipt of the money) and crediting revenue. Note that this does not necessarily means the company adopts the cash basis of accounting.

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Which type of promotion would you use to attract costumers quickly with the help of coupons, samples, and free gifts?
kicyunya [14]

Answer:

Sales promotion

Explanation:

Sales promotion is a marketing strategy of stimulating the demand for a product by offering attractive incentives to customers or retailers.  Sales promotion aims at increasing the sales volumes of a product. It involves the use of persuasive tactics to convince the customer to buy. The effects of a sales promotion are usually short-term but may lead to the acquisition of long term customers. Some of the sales promotions commonly used include

  1. Issuing discount coupons.
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4 0
3 years ago
Read 2 more answers
Arthur Corporation has a margin of safety percentage of 25% based on its actual sales. The break-even point is $290,400 and the
timurjin [86]

Answer:

$53,240

Explanation:

We know that,

Break even point = Fixed cost ÷ contribution margin ratio

$290,400 = Fixed cost ÷ 55%

So, the fixed cost = $290,400 × 55% = $159,720

As the variable expense is 45% and we assume the sales is 100%, so the contribution ratio would be 100% - 45% = 55%

Now the margin of safety equal to

= (Expected sales - break even sales) ÷ (expected sales) × 100

25% = (Expected sales - $290,400) ÷ (expected sales) × 100

25% Sales = (Expected sales - $290,400)

So, the expected sales would be

= $290,400 ÷ 75%

= $387,200

Now the actual profit equals to

= Sales - variable expenses - fixed cost

= $387,200 - $174,240 - $159,720

= $53,240

The variable expense is computed below:

= $387,200 × 45%

= $174,240

4 0
3 years ago
True or false: All final purchases of plant, machinery, and equipment in a given time period are included as gross investment.
sleet_krkn [62]

Answer:

mira eso es muy fácil yo me lo sé pero no es de consultar en el internet as lo con tu mente que facil

4 0
2 years ago
The company has an opportunity to sell 20,000 additional units at $13 per unit. The additional sales would not affect its curren
fiasKO [112]

Answer:

$810,000

Explanation:

incremental revenues = 20,000 x $13 = $260,000

incremental direct materials costs = 20,000 x $2 = ($40,000)

incremental direct labor costs = 20,000 x $4 = ($80,000)

additional overhead costs = $200,000 x 15% = ($30,000)

additional administrative expenses = ($86,000)

incremental net income = $24,000

combined net income = incremental net income + regular net income = $24,000 + $786,000 = $810,000

3 0
3 years ago
Suppose the cost of operating a 75 room hotel for a night is $6,000 and there are 5 empty rooms for tonight. If the marginal cos
Anit [1.1K]

Answer:

More than $40, as the marginal benefit will exceed the marginal cost.

Explanation:

A firm should continue to produce a good or service, to hire an additional worker, and to engage in any type of economic activity as long as the marginal benefit is higher than the marginal cost.

In this case, operating one room for the night costs $40. That is the marginal cost. What the customer pays for renting the room for the night is the marginal cost. Therefore, as long as the customer pays more than $40 for the night, the hotel should rent out the room, because the marginal benefit is higher than the marginal cost.

6 0
3 years ago
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