Answer:
c. credit to Sales Revenue for $72,380.
Explanation:
Since AAA Car Repair's total purchases exceed $200,000 for the year, they are eligible for the 3% rebate on purchases above $60,000. Only the fraction of the purchase over $60,000 should get the 3% rebate, the first $60,000 get the 2% rate.
Therefore, the total sales amount recorded by P & G Auto Parts by selling $74,000 of parts to AAA is:
There should be a credit to Sales Revenue for $72,380.
Answer: B. TC = 50 + 20Q
Explanation:
A Natural Monopoly is generally associated with a firm that has very high initial fixed costs. These costs are generally related to the use of high scale technology or machinery to operate effectively.
Some examples include, gas pipelines, electricity grids, and the like.
They act as both a deterrent for companies to join the market as well as to exit.
Option B shows the typical Total Cost function of a Natural Monopoly and reflects the high initial costs as well.
Answer:
D) $17,500 gain.
Explanation:
Wells Company should record the following transactions:
- Dr Cash account 40,000
-
Dr Accumulated Depreciation Vehicles account 47,500
- Cr Vehicle account 70,000
- Cr Gain on Disposal account 17,500
$40,000 in cash was received and the accumulated depreciation balance should equal to zero, therefore they must be debited.
The vehicles account balance should equal zero and the rest is gain on disposal, therefore they must be credited.
