1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Assume the appropriate discount rate for the following cash flows is 4.78 percent per
lana66690 [7]

Answer:

$9,589.75  

Explanation:

The computation of the present value of the cash flows should be shown in the excel spreadsheet. Kindly find the two attachment out of which one attachment contains the final values, the other attachment contains the formula sheet

After applying the formulas,

The present value of the cash flows is $9,589.75

Hence, the same is to be considered

8 0
2 years ago
Xavi develops a cell phone battery that can be charged by a solar panel and can run efficiently for up to three hours. His frien
svet-max [94.6K]

Answer:

Vision

Explanation:

Vision is the energy that provides an entrepreneur and its organization with the ability to perform and succeed. An entrepreneur should be the main driving force of the passion and energy that the business or vision needs to survive

3 0
3 years ago
What is the present value of the following cash flows at a discount rate of 9 percent?
frutty [35]

Answer:

Year 1 PV = 91,743.12

Year 2 PV =126,251.99

Year 3 PV =  154,436.70  

Explanation:

<em>The present value of future sum is the amount that ought to be invested today at interest rate compounded annually to equal the sum at the end of a particular period.</em>

The present value of a future sum is given as follows:

PV = FV × PV (1+r)^(-n)

PV - present value

FV - Future value

r- interest rate

n- number of years

Year 1 PV = 100,000× 1.09^(-1) =91,743.12

Year 2 PV = 150,000× 1.09^(-2) =126,251.99

Year 3 PV = 200,000× 1.09^(-3) =  154,436.70  

4 0
3 years ago
Which of the following is an advantage of pursuing the​ employment-stability policy of follow demand exactly​? A. Minimizes labo
AleksAgata [21]

Answer:

C. Minimizes​ hiring, layoff, and unemployment costs

Explanation:

The employment-stability policy is a policy that aims to provide security and stability to employees of a company or industry. For workers, this is good because it creates greater security for planning the future of their lives. For businesses, it all depends. If workers keep output at a good level, firms will gain by reducing their spending on hiring research and layoffs.

There is a discussion among economists about the effectiveness of this policy for the economy. Some find it beneficial and others find it can slow down the productivity of workers and the economy as a whole.

5 0
3 years ago
If the supply of a good increased, what would be the effect on the equilibrium price and quantity?
kakasveta [241]

Answer:

An increase in supply, all other things unchanged, will cause the equilibrium price to fall; quantity demanded will increase. A decrease in supply will cause the equilibrium price to rise; quantity demanded will decrease.

5 0
3 years ago
Other questions:
  • Peter, a passionate athlete, uses sports shoes manufactured by Friction Shoes Inc. because of their high quality soles. When Fri
    7·1 answer
  • Under the IMA's standards of ethical practice, an accounting professional can consider informing authorities or individuals not
    11·1 answer
  • Sunset Products manufactures skateboards. The following transactions occurred in March:
    15·1 answer
  • Firms classified as being part of the sharing economy and collaborative consumption are still considered too risky to attract su
    12·1 answer
  • Abbot Corporation reported a net operating loss of $440,000 in 20X3, which the corporation elected to carryforward to 20X4. Incl
    11·1 answer
  • Juan Carlos originally hoped to purchase a home. However, because he could not earn enough money to ever afford one, he decided
    10·1 answer
  • Sandoval needs to determine its year-end inventory. The warehouse contains 26,000 units, of which 3,600 were damaged by flood an
    7·1 answer
  • Angie and Brad form Cats Are Us, Inc. Angie contributes $120,000 cash for 60% of the stock. Brad contributes an asset with an FM
    9·1 answer
  • Bob lives in San Diego and runs a business that sells boats. In an average year, he receives $793,000 from selling boats. Of thi
    9·1 answer
  • A stock currently sells for $49. the dividend yield is 3.8 percent and the dividend growth rate is 5.1 percent. what is the amou
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!