Answer:Please see explanation column for answer.
Explanation:
Net purchase per unit = List price per unit - Trade discount
$300 - ( 300 x 20 %) = 300- (300 x 0.2)= 300 -60= $240
Total purchase amount = Number of units x Net purchase per unit
190 x 240= $45,600
Discount from purchase = Total purchase amount x discount percentage/ 100
=45,600 x 4/100= $1,824
Cash = $45,600
Discount = $1,824
Accounts payable = $43,776
Using the net method of accounting for purchase discounts.
A)Journal entries to record the purchase by Thomas on November 17, 2021
Account Debit Credit
Purchases $43,776
Account Payable $43,776
B)Journal entries to record the payment by Thomas on November 26, 2021
Account Debit Credit
Account Payable $43,776
Cash $43,776
C)Journal entries to record the payment by Thomas on December 15, 2021
Account Debit Credit
Account Payable $43,776
Interest expense $ $1,824
Cash $45,600
Answer:
A strong exchange rate
Explanation:
strong exchange rate is often considered to be a sign of economic strength. It can become a symbol of national pride. Often politicians are worried if they see a ‘weakening’ in the exchange rate. They will point to a strong exchange rate as a symbol of economic success. In the long-term, a strong (appreciating) exchange rate tends to occur in countries with low inflation, improving competitiveness and a strong economic performance. For example, Japan and Germany saw a sustained rise in their exchange rates in the post-war period because they had a good economic performance. Often a devaluation (fall in the value of the exchange rate) can cause a boost to economic growth. A lower exchange rate makes exports cheaper and increases demand for UK goods. This can provide additional demand which increases economic growth. A devaluation may cause inflation:
But, if demand for exports and imports is relatively elastic and there is some spare capacity in the economy, then there should be an increase in economic growth. Exchange rates are determined by factors, such as interest rates, confidence, the current account on balance of payments, economic growth and relative inflation rates. In general terms, a weaker currency will stimulate exports and make imports more expensive, thereby decreasing a nation’s trade deficit (or increasing surplus) over time.
Answer:
Desert Company
The amount of notes payable that should be recorded as a current liability will be $520,000.
Explanation:
The 8% notes payable had been refinanced to a long-term notes payable. But, the 7% notes payable was still being negotiated for refinancing. Since the refinancing had not been agreed, the notes payable would still have a balance of $520,000. However, a note in accounts could state the fact that the notes payable was being negotiated for refinancing.
Answer:
Explanation:
a. QXd = 1,200 – 3PX – 0.1PZ
Pz = $300 and Px = $140, plugging the values, we get,
Qx = 1200 – 3*140 – 0.1*300.
Qx = 750 units.
Elasticity of demand = \deltaQx/\deltaPx * Px/Qx.
\deltaQx/\deltaPx = -3.
E = -3 * 140/750.
E = -0.56
The elasticity of demand is INELASTIC because the absolute value of elasticity is less than one. If the firm charges a price below $140it might lose out in revenue because the percentage change in demand is less than the price.
b. Px = $240, substituting this into the equation we get
Qx = 1200 – 3*240 – 0.1*300
Qx = 450 units.
E = -3 * 240/450.
E = -1.6
The demand is elastic because the absolute value is less than one. If the firm charges a price above $240 it might lose out on its revenue because the percent change in demand is more than the price.
c. Cross price elasticity of demand Es = \deltaQx/\deltaPz * Pz/Qx.
\deltaQx/\deltaPz = -0.1
Es = -0.1 * 300/750.
Es = -0.04
The goods are complements of each other. As the price of one increases, the demand for other would fall, and vice-versa is true.