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Archy [21]
3 years ago
6

Waterway Company uses a perpetual inventory system and made a purchase of merchandise on credit from Carla Vista Corporation on

August 3, for $9200, terms 2/10, n/45. On August 10, Waterway makes the appropriate payment to Carla Vista. The entry on August 10 for Waterway Company is
Business
2 answers:
leva [86]3 years ago
5 0

Answer:

Dr Accounts Payable 9200 Cr Cash 9016 Cr Inventory 184

Explanation:

The payment terms of 2/10, n/45 mean that if paid within 10 days the company is entitled to a 2% discount. Otherwise full payment is required within 45 days.

Since we're settling the account within 10 days ( 7 days after purchase ) we are entitled to a 2% discount.

Originally the inventory was recorded at 9200 Dr and a Cr to Accounts payable of 9200.

The day the invetory is paid we will record the following (August 10)

Dr Accounts Payable $9200

Cr Cash/Bank                           $9016

Cr Inventory                              $184  

Since we're using the perpetual inventory system the actual cost of inventory is 9016 and not 9200. Thus inventory is now recorded at 9016. The cast amount is the actual amount used to settle the account after the 2% discount was applied.

Zigmanuir [339]3 years ago
5 0

Answer:

the journal entries to record this transaction should be:

August 3, purchase merchandise on account terms 2/10, n/45

Dr Merchandise inventory 9,200

    Cr Accounts payable 9,200

August 10, invoice is paid within discount period:

Dr Accounts payable 9,200

    Cr Cash 9,016

    Cr Purchase discounts 184

I recorded the transactions using the gross method, if you use the net method then the transaction should have been originally recorded with the sales discount (Dr Merchandise inventory 9,016, Cr Accounts payable 9,016).

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A modification to a product that changes the taste, texture, sound, smell, or appearance is a(n) _______.
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A modification to a product that changes the taste, texture, sound, smell, or appearance is a <u>style modification.</u>

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2 years ago
Find the amount of money in a savings account after 5 years if you deposit $400 at 1.5% interest compounded
zimovet [89]

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3.5%

Explanation:

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7 0
2 years ago
What must be the price of a $10000 bond with a 6.8% coupon rate, semiannual coupons, and eight years to maturity if it has a yie
Neko [114]

Answer:

Coupon (R) = 6.8% x 10,000 = $680

Face value (FV) = $10,000

Number of times coupon is paid in a year (m) = 2

No of years to maturity = 8 years

Yield to maturity (Kd) = 8% = 0.08

Po = R/2(1- (1 + r/m)-nm) +  FV/ (1+r/m)n m

                      r/m

Po = 680/2(1-(1+0.08/2)-8x2) + 10,000/(1 + 0.08/2 )8x2

                          0.08/2                              

Po = 340(1 - (1 + 0.04)-16)    + 10,000/(1 + 0.04)16

                      0.04                            

Po = 340(1-0.5339) + 10,000/1.8730

                 0.04

Po = 3,961.85 + 5,339.03

Po = $9,300.88

Explanation:

The current market price of a bond is a function of the present value of semi-annual coupon and present value of the face value. The present value of semi-annual coupon is obtained by multiplying the coupon by the present value of annuity factor at 8% for 8 years. The present value of face value is obtained by discounting the face value at the discount factor for 8 years. The addition of the two gives the present value of the bond. All these explanations have been captured by the formula.

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Answer:

B. flexible work hours

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