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3 years ago

In a periodic inventory system, the cost of purchases is debited to: Inventory. Purchases. Cost of goods sold. Accounts payable.

Business

1 answer:

Advocard [28]3 years ago

5 0

Answer:

Inventory

Explanation:

A periodic inventory system is an efficient method to record the sale and purchase of inventory. It is a method which instantly using accounting software to record an entry. In the periodic inventory system, the cost of purchases is debited to an inventory account. The reason is that the purchase of goods increases the inventory, which is why the cost of purchases is debited to an inventory account.

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All else being equal, a company with a low operating leverage will have:

nlexa [21]

Answer:

c) relatively high variable costs

Explanation:

Operating leverage is a ratio that is used to analyze and understand the cost structure of a business. It gives the relation between the variable and fixed cost to the the total cost of running the business.

A business with a large amount of fixed cost relative to variable is said to have a high operating leverage . For such business, operating income would be more volatile because the operating income would not increase in commensurate proportion as sales revenue.

And a company with low operating leverage has low amount of fixed cost relative to variable cost and therefore a relatively high variable costs

Operating leverage is calculated as

Contribution /Earnings before interest and Tax

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2 years ago

A customer purchased a $2, 700 item at Appliance World, paying with a credit card. Appliance World is charged a 2% fee by the cr

dalvyx [7]

Answer:

Explanation:

Credit card is one of the most common way of making payment while a customer purchases anything in the market. The credit card company charge an amount that is payable by the seller.Thus, it is an expense for the one selling the product.

Given:

Credit card fee: 2%

Sales = $2,700

Credit card charges can be calculated as:

Credit card charges = Sales*Credit card fee

Credit card charges = $2,700*2%

Credit card charges = $54

Now, credit card charge is an expense so it will be debited. The amount is yet to be received so accounts receivable will also be debited. The revenue has been earned so it will be credited.

Thus, the journal entry for the given transaction has been attached below:

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3 years ago

A market price:________.

trasher [3.6K]

Answer:

Explanation:

Sellers market! Sellers decide what will be the market price for their goods.

Buyers can and cannot agree with the proposed price.

If they agree, sellers will up their prices next year

If the buyers do not agree we will have a sale going on

Easy as that

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3 years ago

Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operat

11111nata11111 [884]

Answer:

199.02 units

Explanation:

The computation of the economic order quantity is shown below:

Data provided in the question

Annual demand per year = 5,750 units

The Cost of each units = $96

The inventory carrying cost per unit per year = $9

The average ordering cost per order = $31

So, economic order quantity is

$= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}$

$= \sqrt{\frac{2\times \text{5,750}\times \text{\$31}}{\text{\$9}}}$

= 199.02 units

Hence, the economic order quantity is 199.02 units

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2 years ago

The common stock of tasty treats is valued at $10.80 a share. the company increases its dividend by 8 percent annually and expec

V125BC [204]

Hello! I believe the correct answer to your question would be r = 0.09852, or around 9.85%. Hope this helps, and have a great day :)

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3 years ago