Answer:
Statement is given below.
Explanation:
Prepare the necessary journal entries as shown below:
Date Accounts Title and Explanation Ref. Debit Credit
a Accounts Receivable $ 8:780
Sales Revenue $ 8380
(To record the sales made on account)
Sales Returns and Allowances $ 215
Provision for Sales Return and Allowances $ 215
vTo record the estimated allowance on sales
b Sales Returns and Allowances ($722-$215) $ 507
Provision for Sales Return and Allowances $ 215
Accounts Receivable $ 722
(To record the allowance granted towards sales
returns)
c No entry
(Since the cash is not received and hence no
adjustment needed)
Answer:
a. 324%
b. 16.61%
Explanation:
a. The computation of the APR is the annual rate of interest which is shown below:
= Interest per month × number of months in a year
= 27% × 12 months
= 324%
b. And, the effective annual rate would be
= (1 + interest rate per month) ^ Number of months in a year - 1
= (1 + 27%) ^ 12 -1
= 1.27 ^ 12 -1
= 17.6053 - 1
= 16.61%
I do not understand your question
Answer:
e) Nan will have more money than Neal at any age.
Explanation:
In compound interest, the interest earned in the year is added to the principal amount at the beginning of the next year. Earned interest becomes part of the principal which makes it earn interest. Adding interest to the principal to earn more interest is known as compounding.
The longer the investment period is, the more time interest will be compounded, and the more the investment will grow. Nan made her investment at age 25. By the time she retires, her investment period will be 35 years. Neil started her investment at age 30. At any given time after they are both age 30, Nan's investment will have earned compounded interest five more times than Neil. Therefore, Nan will have more money at any given time.
A) exit because she leaves the unfavorable situation
