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3 years ago

The following transactions are for Oriole Company.

Business

1 answer:

shepuryov [24]3 years ago

4 0

Answer:

Journal 1 ;

Account Receivable - Cullumber Co. $ 492200 (debit), Revenue $ 492200

Journal 2;

Cost of Sales $325000 (debit) , Merchandise $325000

Journal 3

Discount Allowed $22900 (debit), Accounts Receivable - Cullumber Co $22900 (credit)

Journal 4

Bank or Cash $469300 (debit), Account Receivable - Cullumber Co (credit)

Explanation:

Journal 1

Revenue is being recognized on sale of Merchandise to Cullumber Co.Since this is not a credit transaction ( the merchandise was sold on credit 2/10, n/30), we recognize an Asset in the Account Receivable - Cullumber for future economic benefits expected to flow to Oriole.

Journal 2

Company uses perpetual inventory system. Which means cost of merchandise is recorded at each sale and not after a certain period (periodic).Thus cost of merchandise is matched to the revenue.Note that Merchandise Account is decreasing (Credit) while the Cost od Sale is increasing (Debit)

Journal 3

The Asset element in the Account Receivable - Cullumber is decreasing due to allowance granted to them.Therefore Culumber is credited.An expense account - Discount Allowed has been created to reflect a decrease in future economic benefit due to grant of the allowance.

Journal 4

The Recognition of Payment through Bank or Cash. Asset of Cash or Bank are increasing as a result of the payment while assets of Accounts Receivable are decreasing due to Cullumber Co. settling their debt. The settled amount is net of allowance granted to them $469300 (492200-22900)

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Three equivalent ways to measure gdp are total _____, total _____, and total ______.

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Three equivalent ways to measure GDP are total production, total income, and total expenditure.

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4 years ago

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Under the periodic inventory system.

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2 years ago

One cost-cutting measure used by Garr Tool Corp. is sourcing the parts it uses from companies in Germany, Ireland, and Canada th

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3 years ago

5. The Bureau of Economic Analysis reported that, in real terms, overall consumer spending increased by $345.8 billion in 2015.

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Answer & Explanation:

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Change in real GDP/ Change in consumption spending = 1/(1-MPC) = 1/(1-0.5) = 1/0.5 = 2

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Change in GDP = $691.6 billion

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According to multiplier formula,

Change in real GDP/ Change in investment = 1/(1-MPC) = 1/(1-0.5) = 1/0.5 = 2

So, Change in GDP = Change in investment*2 = (-100)*2 = -200

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Change in real GDP = $491.6 billion

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