<span>The debit would go to unearned revenue and there would be an accompanying credit to service revenue. In this manner, the service revenue (the money made from the services provided, shown here by the payment of the gift certificates) would receive a $1000 addition while the unearned revenue would drop by $1000 because the outstanding gift cards were spent, lowering the total amount of revenue earned that was still outstanding in those cards.</span>
Answer:
$4,850
Explanation:
If the total invoice price is $5,000 and the company pays within the discount period, then the net price = $5,000 x (1 - 3%) = $4,850
the journal entries should be as follows:
Day 1, merchandise is purchased with 3/10, n/30 terms:
Dr Merchandise inventory 5,000
Cr Accounts payable 5,000
Day 10, the invoice is paid:
Dr Accounts payable 5,000
Cr Cash 4,850
Cr Purchase discounts 150
They are fulfilled in their careers because they like it and get paid
Answer:
A quantity demanded of spaghetti sauce decreases, and the quantity of spaghetti sauce that firms want to supply increases.
Explanation:
A price floor is usually set by a government or an agency of the government. It is the lowest price that can be charged for a good or service. For a price floor to be effective, it should be higher than the equilibrium price.
If the equilibrium price is $3 and the price floor is $4, the quantity demanded falls because spaghetti sauce becomes more expensive. This is according to the law of demand which says the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.
The quantity supplied increases when the price floor is set to $4. This is according to the law of supply which states that the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.
A price floor leads to a movement along the demand and supply curve and not a shift.
I hope my answer helps you