Business firms that sell to retailers and other merchants, and/or to industrial, institutional, and commercial users-but which do not sell in large amounts to final consumers-are called wholesalers. These are businesses that would purchase product in very large amounts and sells them to other businesses or the retailers at a lower price whose target customers are the consumers.
Answer:
Explanation:
May 3
Dr merchandise inventory 27,000
Cr Cash 27,000
May 5
Dr Accounts receivable 19,500
Cr Sales 19,500
May 5
Dr COGS 13,500
Cr Merchandise inventory 13,500
May 7
Dr Sales returns and allowances 1,950
Cr Accounts receivable 1950
Dr Merchandise inventory 1350
Cr COGS 1350
May 8
Dr Sales returns and allowances 750
Cr Accounts receivable 750
May 15
Dr Cash 16464
Dr Sales discount 336
Cr Account receivable 16800
19500-1950-750 = 16800
16800*2% = 336
Answer:
Credit life Insurance
Explanation:
The scenario describes Credit life insurance
This is a form of insurance policy that that is designed to pay off the balance on a policy holder's outstanding loan in case of death. It is designed for the protection of lender and heirs who are co signers from loss in case of the death of the borrower.
The insurance is liable to the balance on the loan as at the time of the death of the borrower.
Answer and Explanation:
The adjusting entries are shown below:
a. Salaries expense Dr $1,400
To Salaries payable $1,400
(being salaries expense is recorded)
b. Interest expense ($40,000 × 12% × 1 ÷12) $400
To interest payable $400
(being interest expense is recorded)
c. Account receivable Dr $3,000
To Service revenue $3,000
(being revenue is recorded)
These 3 entries should be recorded
Answer:
3. Rental costs of $5,000 per month plus $.30 per machine hour of use
Explanation:
Mixed cost is the one which has both the factors, variable and fixed.
Sometimes, the segregation is also difficult, when the total cost is given.
In the chosen option also, there is a fixed cost involved that is monthly expense of $5,000.
Further for each hour of machine used the cost increases and is $0.30 per hour.
That is variable as the total will depend upon the number of hours the machine is used.
All the other three are either completely fixed like salary, and depreciation, or either completely variable like electricity cost.
