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attashe74 [19]
3 years ago
14

Journalize the following foregoing transactions of the buyer, assuming that the company uses the perpetual inventory system. Ref

er to the Chart of Accounts for exact wording of account titles.
Dec. 1 Merchandise with a list price of $4,700 is purchased on account, terms FOB shipping point, 1/10, n/30. The seller prepaid freight costs of $100.
3 Prior to payment, $1,600 of the merchandise is returned.
8 The invoice is paid within the discount period.
Business
1 answer:
mariarad [96]3 years ago
8 0

Answer:

Buyer perspective:

Inventory  4700 debit

Accounts Payable  4700 credit

--to record purchase--    

Accounts Payable 1600 debit

Inventory  1600 credit

--to record returned goods--  

Accounts Payable 3100 debit

Inventory  31 credit

Cash     3069 credit

--to record payment within discount--  

Explanation:

The freights are being paid by the seller as the FOB shipping point the goods are in their possesion until arrive at destination thus, it should assume the trasnportation cost

Account balance:

4700 invoice - 1600 return = 3,100

discount 1% of the balance: 31

cash outlay considering the discount

3,100 - 31 = 3,069

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A traditional GAAP income statement does not help managers to predict the financial results of their decisions. Which of the fol
Amiraneli [1.4K]

Answer:

A) The GAAP statement is based on cost function rather than cost behavior.

Explanation:

Income statements that follow GAAP rules categorizes expenses based on their business function: product, selling or administrative.

While cost behavior categorizes costs based on how they influence a company's activities: variable, fixed and mixed. When a manager wants to measure the impact of any decision he/she makes, they need to use this type of categorization. For example, if fixed costs increase, what is the new break even point? If variable costs decrease, how is the marginal cost affected?

7 0
3 years ago
The following partially completed process cost summary describes the July production activities of Ashad Company. Its production
xeze [42]

Answer:

Units Transferred Out $ 663750

Work In Process Ending $ 30440

Direct Materials Costs  $ 11.5 per EUP   Conversion  Costs$6.2 per  EUP

Explanation:

Ashad Company

Weighted Average Method

Cost Of Production Report

Equivalent Units of Production

                                                      Direct Materials           Conversion

Units transferred out                       37,500 EUP                 37,500 EUP

<u>Units of ending work in process      2,000 EUP                    1,200 EUP</u>

<u>Equivalent units of production          39,500 EUP                38,700 EUP</u>

Costs Added

                                                    Direct Materials           Conversion

Costs of beginning work in

process                                               $13,450                    $1,860

<u>Costs incurred this period               440,800                      238,080</u>

<u>Total costs                                       $454,250                   $239,940 </u>

<u />

Costs per EUP

                                                Direct Materials           Conversion

                                $454,250/ 39,500 EUP         $239,940/38,700 EUP

                                     =  $ 11.5 per EUP                        = $6.2 per  EUP

Dividing the costs with EUP gives cost per EUP.

Costs Accounted For

Units Transferred Out $ 663750

Materials = $ 11.5 * 37500=$  431250

Conversion= $ 6.2 * 37500=$ 232500

Total = $ 663750

Work In Process Ending $ 30440

Materials = $ 11.5 * 2000=$  23000

Conversion= $ 6.2 * 1200=$ 7440

Total = $ 30440

Now adding the costs of Transferred out units and the ending work in process inventory equals the total of the costs added.

$ 663750+$ 30440 = $454,250 + $239,940

$ 694190 = $ 694190

8 0
3 years ago
Greece can produce either 100 bushels of oranges or 20 bushels of tomatoes using all of its available resources, and Turkey can
lakkis [162]

Answer:

100 bushels of oranges

Explanation:

A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.

for Greece

opportunity cost of producing oranges = 20 / 100 = 0.2

opportunity cost of producing tomatoes = 100/ 20 = 5

For turkey

opportunity cost of producing oranges = 30 / 40 = 0.75

opportunity cost of producing tomatoes = 40 / 30 = 1.33

Greece has a comparative advantage in the production of oranges. If it specialises in the production of oranges, it would produce 100 bushels

8 0
3 years ago
In dangerous professions like law enforcement and construction women are
Art [367]

It would be C because women are thought to be physically weaker and not as useful as men. Women can be useful but in certain professions its a lot harder for them. Also men tend to be more willing to work when they get injured or such.

6 0
3 years ago
Ethical standards in business are principles or codes for how a business conducts itself with ___, customers, and the public.
k0ka [10]

Answer:

B. Employees

Explanation:

3 0
3 years ago
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