Answer: a. $56925 ; b. Account payable
Explanation:
a. If Hoffman Company pays the invoice within the discount period, what is the amount of cash required for the payment?
Purchase invoice = $65000
Less: Return = ($7500)
Net Purchase Invoice = $57500
Less: Discount = $57500 × 1% = $575
Cash received = $56925
b. What account is debited by Hoffman Company to record the return?
The account that is debited by Hoffman Company to record the return is the account payable.
Answer and explanation:
There are several factors to be considered at the moment of setting the price of a good or service that is going to be offered. Raw materials, production costs per unit, and labor are the most common. However, setting the price based on the competitors seems vague. An organization cannot depend on this matter strictly of another organization since the reasons for getting to the competitors' price is unknown.
Basing the price of a product based on demand and supply could be a good option. It will imply the price level will fluctuate according to market requests. By doing this, companies make sure to keep their expected revenues almost the same regardless of what competitors might be doing.
Answer: $503,200
Explanation:
Carrying value of note = Face value of note - Interest remaining
Interest remaining = Face value * Periodic interest rate * Number of months remaining / Total number of months for note
= 510,000 * 8%/2 * 2 / 6 months
= $6,800
Carrying value of note = 510,000 - 6,800
= $503,200
<em>Note: Note is for 6 months so periodic interest was divided by 2 to make it a semi-annual rate.</em>
Answer:
Sole Proprietorship.
Explanation:
This is an example of a Sole Proprietorship. It is a form of business owned by one person . The owner provides the capital (usually not that large) , has unlimited liability in the business, and the life of the business depends on the existence of the owner; if he falls ill or passes away and there's no succession plan, the business would dissolve.