Answer:
Refer explanation
Explanation:
1. Purchase of Inventory ($302000)
This transaction has occurred on account which means that payment was not made immediately but would be made at a future date, thus a creditor to the business.
Debit : Purchases account : $302000
Credit : Accounts Payables account : $302000
2. Sale of inventory ($504000)
The sale of inventory requires two separate transactions. The sale is accounted and along with this, the amount of inventory sold would also have to be accounted as an asset reduction.
A. To reduce inventory:
Debit : Cost of Sales account : $327000
Credit : Inventory account : $327000
B. Record the sale:
Debit : Accounts Receivables account : $504000
Credit : Sales account : $504000
This too is a sale on account which means that a debtor has been incurred who will pay for the sale at a later date.
When a motor vehicle is sold to C. Kelly on credit, the relevant entries would be<u> Debit C. Kelly</u><u>, </u><u>Credit </u><u>Motor </u><u>vehicle</u><u>. </u>
When an item is sold on credit to an entity, that entity becomes an Accounts Receivable. As this is an asset, it is debited when it increases which is the case here with C. Kelly purchasing the car on credit.
The motor vehicle account is an asset and assets are credited when they decrease. By selling the vehicle, the motor vehicle account will be credited to show that motor vehicles have decreased.
In conclusion, the accounting entry for the above scenario would be <u>Debit C. Kelly, Credit Motor vehicle. </u>
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Answer:
B. In considering our costs, we need to include what we could have earned by working at part-time jobs instead.
Explanation:
When the group of college students include, in their analysis of costs, what they could have earned by working at part-time jobs instead, they are including the opportunity cost.
The opportunity cost is what is given up to do something: the cost of not choosing an alternative.
Including opportunity costs in their cost-benefit analysis reveals sound economic thinking.
Answer:
attached table
Explanation:
for each transaction the acouting equation stand
As the sum ofthe three assets account is the same as the two liabiltiies account and the two equity account.
The revenues and expenses account were posted directly into retained earnings for the purpose of simplify the table.
<u>The expese account if needed to expand the table would be:</u>
(1) rent expense, (8)utilities expense, (11) interest expense and salaries expense (7) and (9)
Answer:
c. quotas
Explanation:
Quotas refer to minimum criteria to be fulfilled to meet the requirement.
Accordingly in the given instance Rita is given certain quotas to fulfill to meet the job. For this she has to sell at least 5 television sets, which shall be flat screen.
Also she must identify at least 10 potential customers who shall buy flat screen sets in near future.
These are basic conditions which are called quotas.
