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WINSTONCH [101]
3 years ago
7

On October 1, Courtland Company sold merchandise in the amount of $5,800 to Carter Company, with credit terms of 2/10, n/30. The

cost of the items sold is $4,000. Courtland uses the periodic inventory system. Carter pays the invoice on October 8, and takes the appropriate discount. The journal entry that Courtland makes on October 8 is:
Business
1 answer:
Vilka [71]3 years ago
3 0

Answer:

The journal entry that Courtland makes on October 8 is:

Debit Cash $5,684

Debit Sales Discount $116

Credit Receivable Accounts $5,800

Explanation:

On October 1, when Courtland Company sold merchandise, the following entries were made:

1. Debit Cost of goods sold $4,000

Credit Merchandise $4,000

2. Debit Receivable Accounts $5,800

Credit Sales $5,800

Credit terms of 2/10, n/30 means that 2% discount for the payment within 10 days and the full amount to be paid within 30 days.

Carter pays and takes the appropriate discount:

2% x $5,800 = $116

Cash Courtland Company receives: $5,800-$116 = $5,684

The journal entry that Courtland makes on October 8 is:

Debit Cash $5,684

Debit Sales Discount $116

Credit Receivable Accounts $5,800

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Heritage, Inc., had a cost of goods sold of $44,621. At the end of the year, the accounts payable balance was $8,403. How long o
Fiesta28 [93]

Answer:

Days sales in payable = 68.74 days(Approx)

Explanation:

Given:

Cost of goods sold = $44,621

Accounts payable = $8,403

Days sales in payable = ?

Computation of Days sales in payable :

Days\ sales\ in\ payables=(Accounts\ payable\/cost\ of\ goods\ sold)\times365\ days

Days sales in payable = ($8,403 / $44,621) × 365 days

Days sales in payable = 0.188319401 × 365 days  

Days sales in payable = 68.7365814

Days sales in payable = 68.74 days(Approx)

7 0
2 years ago
the creation of a home market is not only necessary to procure for our agriculture a just reward of its labors, but it is indisp
Ahat [919]

The United States should increase the domestic manufacturing to promote prosperity.

<h3>What is manufacturing?</h3>

Manufacturing is the creation or manufacturing of items with the aid of resources such as machinery, labor, tools, and chemical or biological processing or formulation. It is the very foundation of the economy's secondary sector. The phrase can be used to characterize a range of human undertakings, from handicraft to high-tech, but it is most usually used in relation to industrial design, which entails the extensive transition of raw materials from the primary industry into finished goods. Such products may be delivered via the tertiary industry to end users and consumers, sold to other manufacturers for the creation of other, more sophisticated products (such as aircraft, home appliances, furniture, and sports equipment), or both (usually through wholesalers, who in turn sell to retailers, who then sell them to individual customers).

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7 0
9 months ago
Which of the following is a main reason for businesses to expand into foreign markets?
Misha Larkins [42]

Answer: A. To build brand value

Explanation:

By moving internationally, corporations have the ability to increase demand for their products, decrease the economic volatility from their home market, and develop new customers. In most cases foreign markets also allow companies to take advantage or larger margins and of less competition.

7 0
3 years ago
Erin Shelton, Inc., wants to earn a target profit of $960,000 this year. The company’s fixed costs are expected to be $1,320,000
kipiarov [429]

Answer:

1. Break-even sales = $2,200,000

2. Net Income = $0

3. Sales = $3,800,000

4. See explanation section

5. Margin of safety = $1,600,000

Margin of safety (%) = 42.11%

Explanation:

Requirement 1.

We know,

Break-even sales = Fixed expense ÷ Contribution Margin Ratio

Given,

Expected Fixed expense = $1,320,000

Contribution Margin Ratio = Contribution Margin ÷ Sales Revenue

As we do not have contribution margin and Sales Revenue, we have to use variable costs that is expected to be 40% of sales. Therefore,

Contribution Margin Ratio = Sales (%) - variable costs (%) = 100% - 40% = 60%

Therefore, Break-even sales = $1,320,000 ÷ 60%

Break-even sales = $1,320,000 ÷ 60%

Therefore, Break-even sales = $2,200,000

Requirement 2.

                         Erin Shelton, Inc.

Contribution Margin Income Statement format

For the year ended, December 31, Current year

Sales Revenue                                          $2,200,000 (<em>Requirement 1</em>)

<u>Less: Variable expense (40% of sales)         880,000</u>

Contribution Margin                                  $1,320,000

<u>Less: Fixed Expense                                   1,320,000</u>

Net operating Income                                        0

In break-even sales, total fixed expense = total contribution margin, therefore, no income or loss.

Requirement 3.

We know,

This year, To attain profit, sales = (Fixed expense + Target Profit) ÷ Contribution Margin Ratio

Given,

Expected Fixed expense = $1,320,000

Target Profit = $960,000

Contribution Margin Ratio = Contribution Margin ÷ Sales Revenue

As we do not have contribution margin and Sales Revenue, we have to use variable costs that is expected to be 40% of sales. Therefore,

Contribution Margin Ratio = Sales (%) - variable costs (%) = 100% - 40% = 60%

Therefore, To attain profit, sales = ($1,320,000 + $960,000) ÷ 60%

To attain profit, sales = $2,280,000 ÷ 60%

Therefore, To attain profit, sales = $3,800,000

Requirement 4.

Using To attain profit, sales = $3,800,000 (From Requirement 3) to find the net operating income

                          Erin Shelton, Inc.

Contribution Margin Income Statement format

For the year ended, December 31, Current year

Sales Revenue                                          $3,800,000 (<em>Requirement 3</em>)

<u>Less: Variable expense (40% of sales)        1520,000</u>

Contribution Margin                                  $2,280,000

<u>Less: Fixed Expense                                   1,320,000</u>

Net operating Income                                $960,000

Requirement 5.

We know,

Margin of safety = (Current sales - Break-even sales)

<em>From Requirement 1, we get, Break-even sales = $2,200,000</em>

<em>From Requirement 3, we get, Current sales = $3,800,000</em>

Margin of safety = $3,800,000 - $2,200,000

Therefore, Margin of safety = $1,600,000

Margin of safety as percentage = [(Current sales - Break-even sales) ÷ Current sales] × 100

Margin of safety = ($1,600,000 ÷ $3,800,000) × 100

or, Margin of safety = 0.42105 × 100

Margin of safety = 42.11%

8 0
3 years ago
1. Standard Oil of Connecticut, Inc., sells home heating, cooling and security systems. Standard schedules installation and serv
Yuki888 [10]

Answer:

The installers and experts are self employed because;

  • Standard Oil of Connecticut, Inc has no influence over the work other than finishing the venture by a specific time and the installers and experts can pick the days wherein they need to work.  
  • The installers and specialists are occupied with various business as the business is into deals and The installers and experts are into administration.  
  • The work isn't done heavily influenced by business. Professionals and installers are not managed by Standard Oil of Connecticut, Inc and they don't assess their work.  
  • The devices are not given by the business and the installers and experts utilize their own gear and instruments.  
  • The installers and experts are utilized for a specific time-span till the fulfillment of the undertaking and are not utilized for long.  
  • The strategy for installment is through a set rate for every venture and not by time-frame.  
  • The installers and professionals are authorized and affirmed by the state and are having particular abilities which are not increased through the business.  

Every one of these conditions fulfill the necessities of self employed entity as indicated by measures utilized by the courts and doesn't fulfill the standards of representative.

5 0
3 years ago
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