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3 years ago

What is letter of credit?

Business

1 answer:

Naddik [55]3 years ago

5 0

Answer:

a letter issued by a bank to another bank to serve as a guarantee for payments made to a specified person under specified conditions.

Explanation:

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Why can the owner of a business withdraw assets from that business for personal use?

HACTEHA [7]

<span>Since the business owner, by definition, is the person who controls all those assets and is responsible for them, he/she can take parts of them home if they so choose. This is a way to manage resources, especially if those resources are still useful in some way.</span>

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3 years ago

Waupaca Company establishes a $400 petty cash fund on September 9. On September 30, the fund shows $122 in cash along with recei

Lemur [1.5K]

Answer and Explanation:

The Journal entry is shown below:-

September 9

Petty cash fund Dr, $400

To Cash $400

(Being establishment of petty cash fund is recorded)

Here we debited the petty cash fund as assets is increasing while we credited the cash is decreasing.

September 30

Merchandise Inventory Dr, $51

Postage expense Dr, $73

Cash Short and over Dr, $13

Miscellaneous Dr, $141

To Petty Cash $278

(Being reimburse of petty cash find is recorded)

Here we debited the merchandise Inventory, postage expense, cash short and over and miscellaneous as it is expenses while we credited the petty cash as is reimbursed.

October 1

Petty cash fund Dr, $60

($460 - $400)

To Cash $60

(Being increase in petty cash fund is recorded)

Here we debited the petty cash fund as assets is increasing while we credited the cash is decreasing.

6 0

3 years ago

An ""offer"" to sell an item on an online auction site generally is treated as an invitation to negotiate. True or false?

inessss [21]

Answer:True

Explanation: In live auctions, buying and selling of items, and bidding on these items, are done face to face by the auctioneer and the bidder. Online auction sites provide platforms for consumers and producers to buy and sell items over the internet.

Online auctions are different. Because these transactions take place online, and are thus automated, when an "offer" to sell an item occurs then it can be taken as an opportunity to negotiate. Interested parties can make bids on the item, with or without a limit, depending on the auctioneer. Then the party with the highest bid wins the item.

7 0

3 years ago

When using the indirect method to determine cash flows from operating activities, an increase in prepaid expenses should be repo

Andrews [41]

Answer:

b. A deduction from net income in determining cash flows from operating activities.

Explanation:

An increase in prepaid expenses is deducted from Net Income. The reason behind it very simple and no rocket science is there. Lets take Insurance as a prepaid expense. You Paid in-advance for Insurance, it increase your current asset that is Prepaid Insurance BUT at the same time cash went out of the Business.

I hope I made it clear to you. If you still have any queries, feel free to ask me.

Thanks!

8 0

2 years ago

Assume that Sandhill Co. uses a periodic inventory system and has these account balances: Purchases $420,800; Purchase Returns a

ivolga24 [154]

Answer:

Cost of goods Sold = $384,000

Gross Profit = $259,000

Explanation:

Cost of goods sold = Opening Inventory + Net Purchase - Closing Inventory

Opening Inventory = $58,100 Closing Inventory = $92,600

Net Purchases = Purchase - Purchase Return - Discounts + Freight in

Freight in forms part of cost of purchase because without this expense inventory cannot be bought in.

Net Purchases = $420,800 - $11,900 - $8,100 + $17,700 = $418,500

Cost of goods Sold = $58,100 + $418,500 - $92,600 = $384,000

Gross Profit = Sales - Cost of Goods Sold

= $643,000 - $384,000 = $259,000.

6 0

2 years ago

What is letter of credit?​

What is letter of credit?