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shtirl [24]
3 years ago
11

Jervis sells $75,000 of its accounts receivable to Northern Bank in order to obtain necessary cash. Northern Bank charges a 5% f

actoring fee. What entry should Jervis make to record the transaction?

Business
1 answer:
Natasha2012 [34]3 years ago
4 0

Answer:

Debit cash by $71,250, factoring expense by $3,750 and credit account receivable by $75,000.

Explanation:

Step 1 of 2

Calculate the amount of factoring fee.

Factoring fee = 5% ×Account Receivable

=5%×$75,000

=$3,750

​

Step 2 of 2. Journey record. Image attached.

Debit cash by $71,250, factoring expense by $3,750 and credit account receivable by $75,000.

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<span>Right of association-Gradpoint</span>
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Maslowich

Answer: C. the firm can acquire other firms with innovative products instead of allocating capital to research and development

Explanation:

Unrelated Diversification is regarded as a diversification which takes place when a company adds an unrelated product to its business. For example, when an television manufacturer enters into a clothing business.

A firm practicing unrelated diversification can make better capital allocations to its subsidiary businesses than the external capital market can for all the following reasons except when the firm can acquire other firms with innovative products instead of allocating capital to research and development.

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3 years ago
Veronica works in the purchasing department for Medical Center Hospital. She buys gloves, masks, and protective gear from Johnso
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<u>C.</u> Satisficer

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A decision-making method called satisficing aims for a satisfactory or adequate outcome rather than the best one. Satisficing concentrates on practical effort when faced with tasks rather than exerting maximal effort to achieve the ideal result. This is due to the possibility that pursuing the ideal outcome will result in an unnecessary drain on time, effort, and resources. In order to achieve the first feasible solution that yields minimally acceptable results, the satisficing strategy can involve taking a minimalistic approach. Satisficing reduces the range of options that are taken into account to obtain those objectives, eliminating alternatives that would necessitate more demanding, complicated, or impractical efforts in an effort to produce more ideal outcomes.

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4 0
2 years ago
A real estate salesperson brings a buyer to a For-Sale-By-Owner transaction. The home sells for $120,000, and the seller agrees
sweet [91]

Solution:

The home sells for = $120000

The commission that is paid by the seller is 3 percent

Therefore, commission = 3% of $120000 = $3600

The sales-person is on a 65 percent commission schedule with her broker which means that the saleperson gets the 65 percent amount of the commission.

Thus, the amount which is received by the salesperson from the given transaction is = 65% of $3600 = $2340

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8 0
3 years ago
Peng Company is considering an investment expected to generate an average net income after taxes of $3,300 for three years.
nikdorinn [45]

Answer:

3482.12

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