Answer:
Debit Interest Payable for $1,500, debit Interest Expense for $750, and credit Cash for $2,250
Explanation:
The journal entry is shown below:
Interest expense A/c Dr $750
Interest payable A/c Dr $1,500
To Cash A/c $2,250
(Being cash is paid on maturity)
The computation is shown below:
For interest payable
= $50,000 × 9% × 4 months ÷ 12 months
= $1,500
The 4 months from September 1 to December 31
For interest expense
= $50,000 ×9% × 2 months ÷ 12 months
= $750
The two months are January to February
And, the cash is $1,500 + $750 = $2,250
Answer:
1. By consulting the people who have purchased shoes and groceries recently, calling them or checking out their website for these information.
2. I would not be willing to travel far based on losses I might incur.
3. I would not save any money.
Explanation:
How would you find out where the shoes and groceries are?
Marketing Intermediaries help in effective delivery of products and services from the end of producers to the other end of consumers.
Since the marketing intermediaries have been eliminated, I would have to find out where the products groceries and shoes are manufactured or where the nearest wholesaler is. I can either inquire from friends and from people who have purchased shoes recently, call the company or check out their website for these information and also inquire from farmers in my area for groceries. It is highly likely that the manufacturers of shoes and groceries are far from where I live.
How far would you have to travel to get them?
Depending, on the distance of manufacturers and farmers to where I live but at the end of the day it will cost me more on time and gas going from one manufacturer and/or farmer to the other. I will end up not going that far to get them.
How much money do you think you'd save for your time and effort?
I would not save but lose money for my time and effort. The money that the marketing intermediaries would have helped me saved is what I would have spent in the search of manufacturers and farmers.
