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Natalija [7]
3 years ago
7

On March 1, Young Co. borrowed $1,000 by extending their past-due account payable with a 120-day, 6% interest-bearing note. On J

une 29, the due date, Young pays the amount due in full. This entry would be recorded by Young with a credit to _____ in the amount of ______.
Business
1 answer:
tamaranim1 [39]3 years ago
7 0

Answer:

This entry would be recorded by Young with a credit to <u>cash account</u> in the amount of <u>$1,020</u>.

Explanation:

The complete journal entry for June 29 should be

  • Dr Notes Payable account 1000
  • Dr Interest Expense account 20
  • Cr Cash account 1020

The total interest due = $1,000 x 6% x 4/12 =$20

Notes payable is a liability account and it decreases, so it should be debited.

All expenses are debited.

Cash is an asset account and it decreases, so it should be credited.

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What ways can you improve a company?
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1. Embrace transparency. Transparency isn't just positive for employees

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Firm B's demand for a product is 12 units per month. Its supplier charges an ordering cost of $5 per order and $10 per unit with
Dahasolnce [82]

Answer:

25

Explanation:

Base on the scenario been described in the question, Firm B's demand for a product is 12 units per month, and the supplier charges an ordering cost of $5 per $10 per unit with a 10% discount for orders of 25 units or higher, the optimal quantity firm B can order is 25.

3 0
3 years ago
The supply curve for a good will be more elastic if: spending on the good accounts for a large share of a consumer's income. the
Andrei [34K]

The supply curve for a good will be more elastic if "production inputs are readily available at a relatively low cost".

<u>Option: C</u>

<u>Explanation:</u>

The graphical interpretation is applied to understand the concept of supply curve for any good available in market. This is done by correlating the cost of a good or service and the supplied amount during a given period. In such representation the cost is mentioned vertically on the left axis, while the amount supplied is mentioned horizontally.

The coverage of responsiveness with respect to variations in cost of demand or supply products is understood as elasticity.  Here when the small variations in cost leads to the large variations in consumed amount of product, thus curve become more elastic. While if a curve is found less elastic, which showcase that their is large variations in the price to impact a change in consumed amount.

5 0
4 years ago
Sheffield Corp. uses the composite method and its composite rate is 7.5% per year, what entry should it make when plant assets t
muminat

Answer:

$ 142 375

Explanation:

Thinking process:

Let the composite rate be given by the formula:

A = P (1+\frac{r}{n})^{nt}

where

A = amount after interest

\frac{r}{n} = interest rate

t = time

n = number of times (per year)

Therefore, this gives:

A =134 000 (1+\frac{0.75}{12})^{1}\\   = $ 142 375

8 0
4 years ago
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