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3 years ago

14

A supplier offers a company terms 3/10, n/30 for a $10,000 purchase on account on January 1. The company uses a perpetual invent

ory system to record transactions. If the company makes the payment on January 10, the entry to record the payment will include a:

1 answer:

Sedbober [7]3 years ago

8 0

Answer:

The entry to record the payment:

Debit Accounts Payable $10,000

Credit Purchase discount $300

Credit Cash $9,700

Explanation:

Credit terms of 3/10, n/30 means that 3% discount for the payment within 10 days and the full amount to be paid within 30 days.

On January 1, the company purchase inventory:

Debit Inventory $10,000

Credit Accounts Payable $10,000

The company makes the payment on January 10 and takes the appropriate discount:

3% x $10,000 = $300

The entry to record the payment:

Debit Accounts Payable $10,000

Credit Purchase discount $300

Credit Cash $9,700

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A copy machine cost $ 45 comma 000 when new and has accumulated depreciation of $ 44 comma 000. Suppose Print and Photo Center s

natita [175]

Answer:

The disposal resulted was at D. No gain or loss

Explanation:

The gain or loss on disposal on a fixed asset is calculated by comparing the sales proceeds from disposing off the asset and the carrying value of the asset.

The carrying value of the asset is its net book value which is calculated as follows,

Carrying value = Cost - Accumulated depreciation

If the carrying value is equal to the sales proceeds from disposal, there is no gain or loss.

The carrying value of copy machine was = 45000 - 44000 = $1000

The sales proceeds were also $1000

Thus, gain/loss on disposal = 1000 - 1000 = $0

Thus, there was no gain or loss on disposal.

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3 years ago

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On January 1, 2018, Red Flash Photography had the following balances: Cash, $21,000; Supplies, $8,900; Land, $69,000; Deferred R

Nutka1998 [239]

Answer:

See explanation

Explanation:

Red Flash Photography

Journal Entries

1. Debit Cash $29,000

Credit Common Stock $29,000

(issuing common stock for cash that will increase the cash)

2. Debit Cash $44,000

Debit Accounts Receivable $39,000

Credit Service Revenue $83,000

(Provided services on account and cash)

3. Debit Salaries expense $32,000

Credit Cash $32,000

(Paid salaries to workers)

4. Debit Prepaid Rent $21,000

Credit Cash $21,000

(Paid rent in advance for cash)

5. Debit Supplies $31,000

Credit Accounts payable $31,000

(Purchase supplies on account means liability will increase)

6. Debit Dividends $2,900

Credit Cash $2,900

(Paid cash dividends to the shareholders)

7 0

3 years ago

A stock has annual returns of 5 percent, 21 percent, -12 percent, 7 percent, and -6 percent for the past five years. The arithme

sergij07 [2.7K]

Answer:

Arithmetic = 3%

Geometric = 2.37%

Explanation:

The arithmetic average of 'n' returns is given by:

$A = \frac{\sum r_i}{n}$

For five returns of 5% ,21%, -12%, 7%, and -6%:

$A=\frac{0.05+0.21-0.12+0.07-0.06}{5}\\ A=0.03=3\%$

The geometric average of 'n' returns is given by:

$G=\sqrt[n]{(1+r_1)*(1+r_2)*...*(1+r_n)}-1$

For five returns of 5% ,21%, -12%, 7%, and -6%:

$G=\sqrt[5]{(1+0.05)*(1+0.21)*(1-0.12)*(1+0.07)*(1-0.06)}-1\\G=0.0237=2.37\%$

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3 years ago

The December 31, 2015, balance sheet of Maria’s Tennis Shop, Inc., showed current assets of $1,105 and current liabilities of $9

IrinaK [193]

Answer:

$165

Explanation:

The working capital of organization is the difference between the current assets and the current liabilities of the organization. It shows if a company has enough short term assets or asset that can be converted quickly to cash to settle obligations that will arise in the short term.

Working capital as at December 31, 2015

=$1,105 - $915

=$190

Working capital as at December 31, 2016

=$1,320 - $955

=$365

Change in working capital in 2016

= $365 - $190

= $165

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3 years ago

Which consideration must be addressed when deciding for whom to produce?

olga nikolaevna [1]

Since there is no options provided, it could be :

- The price of your products compared to your target's level of income

- The Rules and law that exist in your area

- The amount of competitors that exist

- The distribution factors, how easy is it to deliver your product to your targets

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