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Solnce55 [7]
3 years ago
10

Buyer Bill will receive a utilities bill for an estimated $300 at the end of the month. At closing, the seller has used an estim

ated $100 of the bill. What should appear on the closing statement?
a) a debit to the seller and credit to the buyer for $200
b) a debit to the seller and credit to the buyer for $100
c) a debit to the buyer and credit to the seller for $200
d) a debit to the buyer and credit to the seller for $100
Business
1 answer:
liraira [26]3 years ago
5 0

Answer:

b) a debit to the seller and credit to the buyer for $100

Explanation:

The portion of the utilities bill consumed by the seller is not to be borne by buyer Bill, he cannot be made to pay for what he did not consume, the correct treatment is for seller to bear the $100 consumed by him by way of the following entries

Debit  The seller $100

Credit  Buyer bill $100

This is in the spirit of fairness to both Buyer Bill and Seller.  

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Explanation:

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Cornerstone, Inc. has $125,000 of inventory that suffered minor smoke damage from a fire in the warehouse. The company can sell
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Answer:

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The only cost that can be avoided in these example is the cost of $23,000 so the goods can be cleaned and shipped to the firm's outlet center

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3 years ago
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Decrease is correct answer.
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A dollar in the present day is worth less than that of the dollar in the future, because of returns generated over reinvestment.

<h3>What is reinvestment?</h3>

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