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Art [367]
3 years ago
8

On June 1, Sawyer Co. borrowed $5,000 by extending their past-due account payable with a 45-day, 12% interest-bearing note. On J

uly 16, the due date, Sawyer pays the amount due in full. Sawyer would record this payment with a (debit/credit) _______ to Interest Expense in the amount of _______.
A. credit; $600

B. debit; $75

C. debit; $600

D. credit; $75
Business
2 answers:
Akimi4 [234]3 years ago
8 0

Answer:

The correct answer is Option B.

Explanation:

Note receivable is a promissory note with a written promise made by the borrower to the lender (payee) to pay a certain, definite sum at a specified date.

The interest expense on the notes is calculated as: Principal x Interest Rate x Time

In this case, the total interest expense is $5,000 x 12%/12 x 1.5 months = $75.

Therefor, total debit to interest expense is $75.

miv72 [106K]3 years ago
3 0

Answer:

The correct answer is D)

Explanation:

The amount borrowed is an expense to Sawyer Co. Therefore it has to be recorded as a credit transaction in their Interest Expense Account by the interest on the $5,000 that was borrowed.

The interest on the $5,000 is calculated by apply the rate (12%) on $5,000.

= 5000(12/100)

= 50*12

= $600

The actual amount is gotten by dividing the interest by 12 months and multiplying by a month and a half (45 days) assuming that a month is 30 days.

= (600/12)1.5

= $50 * 1.5

= $75

The principle of double-entry in accounting states that you must always credit any increase in liability and debit a decrease in an amount due to another.  

 

Cheers!

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stepladder [879]

Answer:

1. The correct answer is b) Confidentiality.

2. The CEO supports the CFO and does not agree to correct the financial statements

Explanation:

1. Confidentiality is an important element for different companies and professions, for example, through confidentiality, companies protect much of their information. That is why many companies make a confidentiality agreement with their employees when hiring them with the aim that the Company information is not shared for any reason.

There are confidentiality agreements that remain in force after people have stopped working at the company, for example in the case of the accountant who denounces the financial irregularities of his former boss, violates the confidentiality agreement and if his employer shows that he has no irregularity he can sue the accountant for not complying with the agreement.

2. Executive Director of the company is known as the CEO, whose function is the development of the business plan and the organization of the company.

The CFO is the acronym for the financial director in companies, they have the function of financial planning.

In companies, Executive Director (CEO) has the authority to accept or deny actions to be taken, for example, he has the authority to tell the chief financial officer (CFO) not to correct the company's financial statements. When the company has problems, it may be that the CEO and CFO will have responsibilities taking into account their functions.

<em>I hope this information can help you.</em>

5 0
3 years ago
An increase in the cost of producing a good or service will cause a leftward shift of the supply curve. True False
TEA [102]

Answer:

True

Explanation:

An increase in the cost of production would cause some producers to stop production, supply would fall and the supply curve would shift to the left.

I hope my answer helps you

4 0
3 years ago
The ABC Auto Supply Company of Burlington, Vermont, uses an e-commerce software program on its website to allow customers such a
timama [110]

Answer: B2B ( Business to business)    

Explanation:

The Business to business (B2B) is one of the marketing process in which the products are promoted to the other organization or any business by using the various types of business operations or functions.

The business to business marketing plays an important role as it allow various types of organization for expanding the business in the market.

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4 0
3 years ago
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Artist 52 [7]

Answer:

I think it's make decisions

Explanation:

"CRM is a set of methods that companies use to <em>understand </em>customers. These methods <em>make decisions</em> regarding the selected customer segments"

3 0
3 years ago
Read 2 more answers
True or false<br> Price fluctuations or changes help to clear the market
san4es73 [151]

Answer:

true

What does MARKET CLEARING mean? ... In economics, market clearing is the process by which, in an economic market, the supply of whatever is traded is equated to the demand, so that there is no leftover supply or demand

there for the answer is true

6 0
3 years ago
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