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Margarita [4]
3 years ago
7

Culver Co. uses the gross method to record sales made on credit. On June 1, 2020, it made sales of $51,000 with terms 4/15, n/45

. On June 12, 2020, Culver received full payment for the June 1 sale. Prepare the required journal entries for Culver Co.
Business
1 answer:
hodyreva [135]3 years ago
5 0

Answer and Explanation:

                                               Culver Co.

                                           Journal Entries

                                                                             Debit             Credit

June 1, 2020      Accounts receivables              $51,000

                                  Sales                                                        $51,000

                           <em>Recording sale of goods on credit.</em>

June 12, 2020    Bank                                          $48,960

                           Sales discount (Working 1)       $2,040

                                  Accounts receivables                              $51,000

                           <em>Recording </em>c<em>ash received from customer.</em>

Working 1:

As per the terms of sale, the customer receives 4% cash discount if the payment is made within 15 days. The customer makes the payment on the 12th day, and thus, receives 4% cash discount.

Cash discount = 4% x $51,000 = $2,040

Amount received from customer = $51,000 - $2,040 = $48,960

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forced distribution

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3 years ago
Crane Company has a unit selling price of $500, variable costs per unit of $260, and fixed costs of $184,800. Compute the break-
Ostrovityanka [42]

Answer:

Break-even point in units= 770

Explanation:

Giving the following information:

Selling price= $500

Unitary variable cost= $260

Fixed costs= $184,800

<u>To calculate the break-even point in units using the mathematical equation, we need to use the following formula:</u>

<u></u>

Net income= unit contribution margin*x - fixed costs

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184,800/240 = x

770=x

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3 years ago
A business rents bicycles and in-line skates. Bicycle rentals cost $25 per day, and in-line skate rentals cost $20 per day. The
Alja [10]

Answer:

a.

25 b+20 s=455...equation 1

b+s=20...equation 2, where b and s are the number of bicycle and in-line skate rentals per day.

b. The business had 11 bicycle rentals and 9 in-line skate rentals.

Explanation:

a.

<em>Step 1: Determine an equation for total revenue today</em>

Since the business rents bicycles and in-line skates, the total revenue will be as a result of amount received in revenue from renting the bicycles and in-line skates. This can be expressed as shown;

T=(B×b)+(S×s)

where;

T=total revenue

B=bicycle rental cost per day

b=number of bicycles

S=in-line skate rental cost per day

s=number of in-line skates

In our case;

T=$455

B=$25 per day

b=unknown

S=$20 per day

s=unknown

Replacing;

(25×b)+(20×s)=455

25 b+20 s=455...equation 1

<em>Step 2: Determine an equation for total rentals today</em>

The equation for the total number of rentals is;

R=b+s

where;

R=total number of rentals today

b=number of bicycles

s=number of in-line skates

In our case;

R=20

b=unknown

s=unknown

Replacing;

b+s=20...equation 2

b.

<em>Step 3: Combine equation 1 and 2 ans solve simultaneously</em>

1(25 b+20 s=455), multiplying equation 1 by 1=25 b+20 s=455

     20(b+s=20), multiply equation 2 by 20=20 b+20 s=400

25 b+20 s=455

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20 b+20 s=400

5 b+0 s=55

(5 b)/5=55/5=11

b=11, replace the value for b in equation 2 and solve;

(20×11)+20 s=400

220+20 s=400

20 s=400-220=180

20 s=180

s=(180/20)=9

The business had 11 bicycle rentals and 9 in-line skate rentals.

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Answer:

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