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kotegsom [21]
3 years ago
5

Exercise 7-6 (Algo) Cash discounts; the gross method [LO7-3] Harwell Company manufactures automobile tires. On July 15, 2021, th

e company sold 1,100 tires to the Nixon Car Company for $60 each. The terms of the sale were 2/10, n/30. Harwell uses the gross method of accounting for cash discounts. Required: 1. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and collection on July 23, 2021. 2. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and collection on August 15, 2021.
Business
1 answer:
babymother [125]3 years ago
5 0

Answer and Explanation:

1. Journal Entries

July 15                    Accounts Receivable                             $66,000

                                                Sale Revenue                                    $66,000

July 23                   Cash                                                          $64,680

                              Sales discount                                            1320

                                           Accounts Receivable                              66,000

2. Journal Entries

July 15                     Accounts Receivable                             $66,000

                                                Sale Revenue                                    $66,000

August 15                   Cash                                                          $66,000

                                           Accounts Receivable                              66,000

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A store that has very limited inventory commonly uses what type of inventory method ?
faltersainse [42]

RETAIL INVENTORY METHOD SHOULD BE USED BY A STORE .

Explanation:

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3 0
3 years ago
Explain how the stock market operates, and list the distinctions between the different types of stock markets
nasty-shy [4]

Answer:

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Why would you want to invest in the stock market?

In this modern day companies are growing more than ever and will continue to as long as companies and businesses are around, and this is how you can make money in the stock market. Back in the day stocks like netflix, amazon and apple were as low as $5 a share and this was when the companies weren't as famous. As these industries and companies started to grow, you can see the growth of the stock price over the course of time. If you bought multiple shares of these stocks back when it was only $5 for ONE share, you would have a lot of money just made in the stock market.

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Explanation:

4 0
2 years ago
Which of the following is true of water budgets?
zysi [14]

Answer:

B. In the winter, when water use is low, precipitation exceeds evapotranspiration

Explanation:

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During winters due to the cold temperatures, the rate of water loss from the soil and from plants is much lower than the amount of precipitation which is on form of snow.

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3 0
3 years ago
Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority to make investments as neede
pantera1 [17]

Answer:

34.04%

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now,

The return on investment will be calculated as:

Return on investment (ROI)= \frac{\textup{Net operating income}}{\textup{Average operating assets}}

on substituting the values, we get

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3 0
3 years ago
Quarter-inch stainless-steel bolts, 1.5 inches long are consumed in a factory at a fairly steady rate of 50 per week. The bolts
natta225 [31]

Answer:

a.

EOQ = 2,944 units

b.

Setup cost = Numbers of Order x Ordering cost = $8.83

Holding Cost = $8.83

Explanation:

a.

Economic order quantity is the quantity at which business incur minimum cost. This is the level of order where the holding cost equals to the ordering cost of the business.

As per given data

Annual Demand = 50 per week x 52 weeks in a year = 2,600 bolts

Ordering cost = $10

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EOQ =  \sqrt{\frac{2 X S X D}{H} }

EOQ = \sqrt{\frac{2 X 10 X 2,600}{0.006} }

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b.

Setup cost = Numbers of Order x Ordering cost = (2,600 / 2,944) x $10 = $8.83

Holding Cost = (2,944 / 2) x $0.006 = $8.83

6 0
3 years ago
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