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Vitek1552 [10]
3 years ago
7

On December 1, Macy Company sold merchandise with a selling price of $9,000 on account to Mrs. Jorgensen, with terms 4/10, n/30.

On December 3, Mrs. Jorgensen returned merchandise with a selling price of $700. Mrs. Jorgensen paid the amount due on December 9. What journal entry did Macy Company prepare on December 9 assuming the gross method is used?
A) Debit Cash for $7,968 and credit Accounts Receivable for $7,968.
B) Debit Sales Revenue for $7,968, debit Sales Discounts for $332, and credit Accounts Receivable for $8,300.
C) Debit Sales Revenue for $8,300, credit Sales Discount for $332 and credit Cash for $7,968.
D) Debit Cash for $7,968, debit Sales Discounts for $332, and credit Accounts Receivable for $8,300.
Business
1 answer:
Marysya12 [62]3 years ago
8 0

Answer:

B) Debit Sales Revenue for $7,968, debit Sales Discounts for $332, and credit Accounts Receivable for $8,300.

Explanation:

The journal entry is shown below:

Cash A/c Dr                   $7,968

Sales Discount A/c Dr $332

     To  Accounts receivable    $8,300

(Being cash received recorded)

The computation of the account receivable  

= Credit sales - returned goods

= $9,000 - $700

= $8,300

And, the discount would be

= Accounts receivable × percentage given

= $8,300 × 4%

= $332

The remaining amount would be credited to the cash account.

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MatroZZZ [7]

Answer:

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Explanation:

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The write off is computed as:

Write off = Beginning balance + Bad debt expense - Ending balance

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7 0
3 years ago
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Answer:

The correct answer is C.

Explanation:

Giving the following information:

Cochrane Associate's net sales last year were $525 million. If sales grow at 7.5% per year, how large (in millions) will they be 8 years later?

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3 0
3 years ago
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3 0
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When a financial institution provides a standardized financial product such as a mortgage, it is:________
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A central bank is a financial institution that is accountable for overseeing the monetary system and policy of a nation or group of nations, controlling its money supply, and setting interest rates.

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6 0
1 year ago
asino Inc. expects to pay a dividend of $3 per share at the end of year 1 (Div1) and these dividends are expected to grow at a c
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Answer:

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Explanation:

The computation of the current stock of the value today is shown below:

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