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Usimov [2.4K]
3 years ago
12

On June​ 1, Addison Company purchased $ 10,000 of inventory on account from Garrison Company. Garrison offers a 4​% discount if

payment is received within 15 days. Addison records the purchase using the gross method and the perpetual inventory system. The journal entry on June 1 by Addison Company includes​:
a. a debit to Inventory for $9,600
b. a credit to Cash for $10,000
c. a debit to Inventory for $10,000
d. a credit to Accounts Payable for $9,600
Business
1 answer:
IRINA_888 [86]3 years ago
4 0

Answer:

c. a debit to Inventory for $10,000

Explanation:

Whenever goods are purchased on a discount to be received on payment basis, the inventory is first recorded at cost.

Also as per the general rule, discount is a kind of income, and incomes are recorded only when earned, therefore, the cost of inventory shall be reduced by 4% only when the payment is made, therefore the inventory on the date of purchase shall be recorded at $10,000 only and not for $9,600.

Thus, correct option is c

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The following transactions occur for Cardinal Music Academy during the month of October: a. Provide music lessons to students fo
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Answer:

Part a

Debit : Cash $9,000

Credit : Service Revenue $9,000

Part b

Debit : Prepaid Insurance $3,240

Credit : Cash $3,240

Part c

Debit : Equipment $12,000

Credit : Cash $12,000

Part d

Debit : Cash $14,000

Credit : Loan Payable $14,000

Explanation:

Step 1 : Identify the Accounts affected in each and every transaction.

Step 2: Then determine if this Account is increasing or decreasing.

Step 3 :The journal entries have been prepared above.

6 0
3 years ago
Decisions made during the supply chain design phase regarding significant investments in the supply chain, such as the number an
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Answer:

The correct answer is True.

Explanation:

A good supply chain aims to maximize the profitability of the company while trying to provide the best service in order to obtain a high degree of customer satisfaction. That is why, when planning the design, it must be customer oriented and not only focused on the company.

Steps prior to the design of the supply chain

When designing the supply chain, there are several points to consider in order to obtain a coherent and functional design.

  • The members that become part of the chain. The first thing to be fixed are the members that are part of the chain, since this will be the guide to go through the rest of the steps. Within this, a subdivision could be carried out, but it is worth mentioning that an agent can be a principal or support agent jointly depending on the work to be done at each moment:
  • Principal. They are the ones that provide direct value to the product or service.
  • Of support. They are those members whose function is to provide information or resources to the main members, such as banks.
  • Structure that forms the chain, that is, all the phases through which a product / service passes in order to be marketed as such. At this point we must try to be as meticulous as possible and always add as much as possible all the phases that are involved, both in manufacturing and in supply.
  • Processes and flows that are carried out in each of the structures mentioned above.
8 0
3 years ago
When a vacuum cleaner salesman persuades people to let him vacuum their living room for free, he is likely to increase his chanc
Afina-wow [57]
<span>He is using the foot in the door technique. This is when you ask for small things and ingratiate yourself to a person in order to make way for larger things that the person would not ordinarily do. You ask for something small, and then that makes them more likely to give you something larger when you ask.</span>
5 0
3 years ago
Nathan is defending his first place ranking at the annual debate competition. Just minutes before his turn, Nathan gets nervous
satela [25.4K]

Answer:

The consideration which will be dictated for Nathan's self efficiency is:

C. Verbal persuasion

Explanation:

Here, in the question it is mentioned that Nathan has been defending his first place ranking in his annual debate competition.

Now, just some minutes before his turn in the annual debate competition he gets nervous and he cannot remember his arguments related to the debate topic.

His teacher comes and talk to him, teaches him, reminds him of his theories and topics. Also motivates him and make him remind his special skills and shore up his demoralised confidence.

By listening all these things he gets motivated and delivers his best and defends his title at his very best.

So, the consideration which will be dictated for Nathan's self efficiency is:

C. Verbal persuasion

7 0
3 years ago
Zanda Corp. and Jones Corp. are identical in every way (products produced, costs, demand, etc.) except for one. Zanda uses a lev
Natali [406]

Answer: (C) Zanda will have higher inventory carrying costs.

Explanation:

  The inventory carrying cost is one of the type of overall holding inventory cost that helps in identifying the various types of business expenses and also storing the various types of unsold goods and the services in the market.  

The inventory carrying cost is also known as the holding cost and it is basically responsible for handling the cost system by using the estimated formula.

According to the given question, Zanda corporation is basically using the level production plan for the purpose identifying their business factors such as costs, demand and the products.

So, based on the given information is Zanda will have the high inventory carrying cost statement is true. Therefore, Option (C) is correct answer.  

 

3 0
3 years ago
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