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lara [203]
3 years ago
7

The following information pertains to Eagle Co.'s Year 5 sales: Cash Sales Gross $ 80,000 Returns and allowances 4,000 Credit sa

les Gross 120,000 Discounts 6,000 On January 1, Year 5, customers owed Eagle $40,000. On December 31, Year 5, customers owed Eagle $30,000. Eagle uses the direct write-off method for bad debts. No bad debts were recorded in Year 5. Under the cash basis of accounting, what amount of net revenue should Eagle report for Year 5?
Business
1 answer:
Debora [2.8K]3 years ago
3 0

Answer:

The amount of net revenue  Eagle should report for Year 5 is $ 80,000.

Explanation:

Under Cash basis of accounting revenue and expenses are recorded when payment against them is made or received. Expenses and revenues incurred are not relevant.

The amount of net revenue will comprises of revenue received in cash during the reporting period. Detail Calculations are given below.

Cash Sales                      $ 80,000

Returns and allowances ($  4,000)

Discounts                         ($  6,000)

Opening Receivable        $ 40,000

Closing Receivable          ($ 30,000)

Net revenue                     $ 80,000                

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You borrow $12,600 to buy a car. The terms of the loan call for monthly payments for five years at an interest rate of 4.65 perc
UkoKoshka [18]

Answer:

$627

Explanation:

To find the answer, we use the present value of an annuity formula:

P = A[1-(1+i)^{-n} /i]

Where:

  • P = Present value of the investment
  • A = Value of the annuiry
  • i = interest rate
  • n = number of compounding periods

Now, we plug the amounts into the formula:

12,600 = A[1-(1+0.0465)^{-60} /0.0465\\]

12,600 = A (20.09870355)

A = 12,600/20.09870355

A = 627

Thus, the value of the monthly payments is $627

4 0
3 years ago
Regardless of the objective of an advertising campaign, each campaign's objectives must be:
andrew11 [14]

E) specific and measurable

8 0
2 years ago
An electric vehicle that offers a new, longer lasting battery at the existing prices is an example of a company focusing on:____
Sever21 [200]

An electric vehicle that offers a new, longer-lasting battery at the existing prices is an example of a company focusing on customer value.

In sales, commerce, and economics, a patron is the recipient of a great, provider, product or concept - received from a supplier, dealer, or supplier through a monetary transaction or trade for money or some different treasured consideration.

A customer is a person or business that purchases some other corporation's goods or services. customers are important because they pressure sales; without them, groups can not continue to exist.

An instance of a customer is someone who is going to an electronics shop and buying a tv. (informal) someone, especially one engaging in some kind of interaction with others.

Learn more about customer here:brainly.com/question/380037
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8 0
2 years ago
At age seventeen, Luke Skywalker enters into a contract to buy a dozen movies from eHD Stream, Inc., an online video service. So
serg [7]

Answer:

<u>Executed</u>

Explanation:

Ratification of a contract refers to formally approving a contractual obligation. To dis-affirm refers to back out of a contract wherein the parties to it return the consideration.

A minor, an individual below the age of eighteen years does not have capacity to a valid contract. A minor may void a contract before attaining majority.

When a contract has been signed by both the parties to it, with transaction closed, the contract shall be termed as executed.

In the given case, Luke a minor entered a contract to buy movies. Later upon attaining majority, Luke decides to disaffirm i.e not honor it. The contract in such a scenario shall be considered as formally approved i.e ratified by both parties if it was executed.

In such a case, Luke will have to honor the contract since the disaffirmation period i.e before his attaining majority has lapsed.

5 0
3 years ago
All the following statements about residual value guarantees are correct about residual value guarantees, except that they:
lozanna [386]

Answer:

c. protect lessees against lessors who abuse leased assets.

Explanation:

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