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siniylev [52]
3 years ago
10

- On November 11th, Smaller Company sold merchandise with a selling price of $8,000 on account to Rogers Office Supplies, with t

erms 2/10, n/30. No sales returns are expected. On November 17th, Smaller received the full amount due from Rogers Office Supplies. Prepare the journal entry for Smaller Company on November 17th, using the gross method.
Business
1 answer:
guajiro [1.7K]3 years ago
5 0

Answer:

Cash $7,840 (debit)

Discount allowed $160 (debit)

Accounts Receivable $8,000 (credit)

Explanation:

When the Sale is made the following entry will be recorded :

Accounts Receivable $8,000 (debit)

Sales Revenue $8,000 (credit)

Since Rogers Office Supplies pays their Account within the discount period of 10 days they are entitled to a cash discount and would pay Small Company an amount net of cash discount of 2%.

<u>Entries will be :</u>

Cash $7,840 (debit)

Discount allowed $160 (debit)

Accounts Receivable $8,000 (credit)

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Which of the following is NOT one of the mentioned ways high school differs from higher learning?
Digiron [165]
Hey there!

<span>Which of the following is NOT one of the mentioned ways high school differs from higher learning?

Answer: </span>
<span>Amount of support and guidance

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3 0
3 years ago
the records of pippins, incorporated, included the following information: net sales $ 1,000,000 gross margin 475,000 interest ex
Dafna11 [192]

The time interest earned ratio of the company was found to be 7.4 times to the expenses.

EBIT = Net Income + Interest Expense + Income tax Expense

= 240,000 + 50,000 + 80,000

= 370,000

Times Interest Earned Ratio:

EBIT / Interest Expense

= 370,000 / 50,000

= 7.4 times

Times interest earned ratio is a good way to measure a company's financial performance because it shows a company's ability to pay interest charges on its debts the ratio is calculated by taking a company's net income before interest and taxes and dividing it by the company's interest expense.

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7 0
1 year ago
Temper Co. purchased 60, 6% Irick Company bonds for $60,000 cash plus brokerage fees of $600. Interest is payable semiannually o
zavuch27 [327]

Answer:

d. $1,400.

Explanation:

The computation of the gain on sale of debt investment is shown below:

Gain on sale of debt investment = Sale price - purchase price

where,

Sale price = $32,000 - $300 = $31,700

And, the purchase price is

= (60,000 + $600) × 30 days ÷ 360 days

= $30,300

Now the gain on sale of debt investment is

= $31,700 - $30,300

= $1,400

8 0
3 years ago
Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $40 per unit. Variable expenses are $20.00 per
Tanzania [10]

Answer:

50%

Explanation:

The formula and the computation of the contribution margin ratio is shown below:

Contribution margin ratio = (Contribution margin per unit) ÷ (selling price per unit) × 100

where,

Contribution margin per unit = Selling price per unit - Variable expense per unit  

= $40 per unit - $20 per unit

= $20 per unit

So, the CM ratio is

= ($20 per unit) ÷ ($40 per unit) × 100

= 50%

8 0
3 years ago
Hitzu Co. sold a copier (that costs $4,800) for $6,000 cash with a two-year parts warranty to a customer on August 16 of Year 1.
den301095 [7]

Answer:

warranty expense = $240

estimated warranty liability = $240

Explanation:

There is no option on the customer to take the warranty or not. Therefore this type of warranty is known as an Assurance type warranty.

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Year 1

Warranty expense $240 (debit)

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Year 2

<em>When warranty claim is subsequently received</em>

Warranty Provision $209 (debit)

Materials $209 (credit)

7 0
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