1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Eduardwww [97]
3 years ago
11

​Sara's Jewelry sold 20 necklaces for $ 35 each to a credit customer. The invoice included a 5​% sales tax and payment terms of

4​/10, ​n/30. In​ addition, 5 necklaces were returned prior to payment. The entry to record the original sale would​ include:
Business
1 answer:
jeka943 years ago
8 0

Answer:

The journal entry for recording the original sale is shown below:

Explanation:

The journal entry for recording the original sale is as follows:

Accounts receivable A/c................................Dr $735

         Sales Tax A/c...................................................Cr $35

          Sales A/c............................................................Cr $700

As sales is made on credit so the accounts receivable account will be debited against the Sales account, which is credited. And there is sales tax charged on selling necklaces, which is credited to the sales tax account.

Computation of Sales Tax as:

Sales tax = Selling amount × Tax

where

Selling amount = Number of Necklaces × Price

= 20 × $35

= $700

So,

Sales tax = $700 × 5%

Sales tax = $35

You might be interested in
December 31, Year 1, the Loudoun Corporation estimated that 3% of its credit sales of $112,500 would be uncollectible. Loudoun u
allochka39001 [22]

Answer:

A. NA = NA + NA NA -NA = NA NA NA

Explanation:

As Year 2 the customer paid Loudoun the $1,050,which was written off On April 4, Year 1.

Therefore, the following journal entries to record the transaction.

Accounts receivable                     debit $1,050

Allowance for doubtful accounts credit $1,050

To record reinstatement of accounts receivable.

Cash                           debit $1,050

Accounts receivable credit $1,050

As one asset account is increase and another asset account is decreased.

7 0
3 years ago
dit sales of $42,000 and $68,000, respectively. The company expects to collect 60% of its credit sales in the month of the sale,
blagie [28]

Answer:

cash collections from credit sales that the company will include in its cash budget for the second month is $55,500

Explanation:

Second Month Cash Collections will include the following Cash flows:

(1) 60% of the 2nd month`s sales

(2) 35 % of the 1st month`s sales

<u>Therefore cash collections from credit sales :</u>

(1) 60% of the 2nd month`s sales ( $68,000×60%)  = $40,800

(2) 35 % of the 1st month`s sales ( $42,000× 35 %) = $14,700

Total cash collections                                                = $55,500

8 0
2 years ago
Read 2 more answers
Perdue Company purchased equipment on April 1, 2014, for $270,000. The equipment was expected to have a useful life of three yea
otez555 [7]

Answer:

<u>Straight line:</u>

2014 $ 65,250  

2015 $  87,000  

2016 $  87,000  

2017 $   21,750

<u>units-of-output method:</u>

2014 $ 108,750

2015 $   79,750

2016 $  58,000

2017  $   14,500

<u>dobule declining method</u>

2014  135,000  

2015  45,000  

2016  15,000  

2017  9,000  

Explanation:

<u>Straight line:</u>

(cost - salvage value) / useful life

(270,000 - 9,000)/3 = 87,000 per complete year

First year: from April 1st to December 31th

87,000 x 9/12 = 65,250

Second and third year are complete year thus, 87,000

fourth year: from Jan 1st to March 31th:

87,000 x 3/12 = 21,750

<u>units-of-output method:</u>

(cost - salvage value) / unit of output

261,000 / 18,000 = 14.5 per hour

We multiply each year hours by this rate

7,500 x 14.5 = 108,750

5,500x 14.5 =   79,750

4,000x 14.5 =   58,000

1,000 x 14.5 =   14,500

<em><u>double declining </u></em>

we multiply by twice the rate of of straight line:

1/3 x 2 = 2/3 we depreciate this amount of the carrying vbalue per year

Last year we adjust to obtain the residual value

Year   Beginning   Rate   Dep expense   Carrying value

2014     270,000     0.50     135,000     135,000  

2015     135,000     0.67     90,000     45,000  

2016     45,000     0.67     30,000     15,000  

2017     15,000                6,000      9,000  

5 0
2 years ago
Which of the following is a false statement? Brokers are paid a fee for their agent services; dealers earn the bid-asked spread
Natalka [10]

Answer:

less volatile the price of a security, the wider the bid-asked spread.

Explanation:

From the answers listed in the question the one that would be considered false would be that the less volatile the price of a security, the wider the bid-asked spread. This is because the bid-asked spread usually depends on the liquidity of the asset, when the asset has a large enough liquidity which causes the volatility to be low the bid-asked spread becomes very narrow since there is not much demand for buyers willing to pay higher prices for the asset in question. The opposite occurs if an asset is very popular and volatility is high which creates a much wider bid-asked spread.

3 0
3 years ago
The company you are investigating recorded fictitious revenues. What is the effect on the asset turnover ratio?
BARSIC [14]

In case fictitious revenues are recorded asset turnover ratio will increase.

The asset turnover ratio measures the performance of an organization's assets in producing revenue or income. It compares the dollar quantity of income (revenues) to its overall belongings as an annualized percent. hence, to calculate the asset turnover ratio, divide net income or revenue by the average total belongings.

Fictitious revenues contain the sale of goods or services that no longer arise. Fictitious invoices may be fake, but can also contain valid clients. A fictitious invoice may be prepared for a legitimate patron despite the fact that goods are not added or services have no longer been rendered.

Accounting ratios, an important subset of monetary ratios, are a group of metrics used to degree the performance and profitability of an employer based on its financial reports. They provide a way of expressing the relationship between one accounting information factor to any other and are the basis of ratio evaluation.

Learn more about asset turnover ratio here brainly.com/question/13401474

#SPJ4

5 0
1 year ago
Other questions:
  • EB1.
    13·1 answer
  • Cork Oak Corporation purchased a heavy-duty truck (not considered a passenger automobile for purposes of the listed property and
    10·1 answer
  • Which term refers to organizations that are departmentalized by the nature of the work being performed is called functional prod
    10·1 answer
  • After working for a large firm for several​ years, tyler started his own landscaping design business.​ however, he soon ran out
    15·1 answer
  • A certain country taxes the first $20,000 of an individual's income at a rate of 15%, and all income over $20,000 is taxed at 20
    8·1 answer
  • Karen is a senior manager at the american bank. a good part of her workday is spent in meetings with clients, subordinates at th
    7·1 answer
  • The unemployment rate _________.
    5·1 answer
  • Suppose you buy lunch for $15.40 that includes a 8% sales tax. How much did the restaurant charge you for the lunch (excluding a
    6·1 answer
  • JDS Shipyard's projected benefit obligation, accumulated benefit obligation, and plan assets were $75 million, $65 million, and
    6·1 answer
  • What is the principle of E-commerce?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!