At the time of collection, if the amount is paid within the discount period, the following entry is recorded:
Cash (+A).......................xxx
Sales discount(+XR,-R,-SE)........xxx
R. Jones (Accounts Receivables)(-A)….xxx
If the account is paid in full before the end of the discount period, the customer can be eligible for a cash discount rate. The duration of the trade credit is known as the credit period, and up until the end of the credit term, no interest is applied to the outstanding balance.
You use it to illustrate how a company's cash flow is distributed equally throughout the year rather than arriving in full at the end. We would use discount period numbers of 1 for the first year, 2 for the second year, 3 for the third year, and so on in a DCF without the mid-year convention.
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Answer:
$7,816.9943
Explanation:
Using the high-low method;variable cost per unit=[Total cost at highest level-Total cost at lowest level]/(Highest level-Lowest level)
= $16,700 - $15,850 / 951 - 860
= $850 / 91
= $9.340659340659341
= $9.3407
Hence, total fixed cost = $16,700 - ($9.3407*951) = $16,700 - $8,883.0057 = $7,816.9943
Answer:
D. Both (B) and (C) are true
Explanation:
Cash payback approach is helpful to know the number of years, project would take to recover the initial investment. It could be calculated by dividing initial investment by cash flow per year. It is very simple and easy approach to compare projects and find number of years to recover the initial investment. The most serious weekness of cash payback approach is, it ignore the time value for the money, it also ignore project profitablity and project`s return on investment. As according to cash payback approach, it consider projects with short payback time as profitable and thus ignore useful life of alternative projects.
Answer: $80
Explanation:
The opportunity cost is regarded as the real cost of the alternative that was left or forgone.
Based on the information given in the question, the opportunity cost is the free ticket to a Post Malone concert that is worth $80 which was given to me by my friend.
Therefore, the correct option is E.
Answer: 92812.50
Explanation:
The following information can be derived from the question:
Loan principal = $1,500,000
LIBOR for 1st 6 months = 4.50%
LIBOR for last 6 months = 5.375%
Lending margin per annum = 1.25%
The interest will then be:
= 1,500,000 × [(4.50% + 1.25%)/2] + 1,500,000 × [(5.375% + 1.25%)/2]
= 1,500,000 × [(0.045 + 0.0125)/2] + 1,500,000 × [(0.05375 + 0.0125)/2]
= 92,812.50
Therefore, the interest is 92812.50.
