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Alina [70]
3 years ago
13

Q 8.2: On June 15th, Buehler Company sells merchandise on account to Chaz Co. for $1,000, terms 2/10, n/30. On June 20th, Chaz C

o. returns merchandise worth $300 to Buehler Company. On June 24th, payment is received from Chaz Co. for the balance due. What is the amount of cash received?
Business
1 answer:
densk [106]3 years ago
5 0

Answer:

The amount received in cash is $686

Explanation:

The amount which is received in cash is computed as:

On June 20, the amount of $300 goods returns from customer, so the remaining balance is

= $1,000 - $300

= $700

On the remaining balance, the discount which is evaluated as the payment is received within the discount period which is June 24. So,

= $700 x  (100% - 2%)

= $ 700 x  98%

= $ 686

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If revenues are recognized only when a customer pays, what method of accounting is being used?Recognition basisAccrual-basisMatc
Dvinal [7]

Answer:

The correct answer here is Cash basis.

Explanation:

One of the methods of recording accounting transactions for income and expenses is cash basis accounting , where the transactions are only recorded when income is received in cash or expenses are paid in cash. This accounting method is not accepted by GAAP (Generally accepted accounting principle ) and IFRS ( International financial reporting standards ) because this method violates the income ( revenue ) and expense recognition principle.

3 0
3 years ago
A pegged exchange rate means the value of the currency is fixed relative to a reference currency
ruslelena [56]
Are you asking if it’s true or false?
5 0
3 years ago
Which is not a reason for supporting ethical relativism?
raketka [301]

This is not the reason why not support ethical relativism; Ethical relativism holds that there is a right and wrong, even though we do not agree about what is right and wrong and If people disagree about some moral matter, their disagreement will always be due to their having different moral values.

4 0
3 years ago
Determine the (a) working capital, (b) current ratio, and (c) quick ratio. Round ratios to one decimal place.The following data
kramer

Answer:

a. The working capital is $625,000

b. The current ratio is 2.82

c. The quick ratio is 2.08

Explanation:

In order to calculate the working capital first we need to calculate the Current Assets and the Current Liablities as follows:

Current Assets = Cash + Accounts receivable + Inventory + Prepaid Expenses + Temporary investments

= 154,000+210,000+240,000+15,000+350,000

=$969,000

Current Liablities = Accounts payble + Accrued liablities + Income tax payable + Notes payable,short term

= 245000+4000+10000+85000

=$344,000

a. Therefore, working capital = Current Assets - Current liabilities

= 969000 - 344000

= $625,000

b. To calculate the current ratio we have to use the following formula:

current ratio = Current Assets / Current liabilities

=969,000 /344,000

= 2.82

c. To calculate the quick ratio we have to use the following formula:

quick ratio = (Cash + Accounts receivable + Temporary investments ) / Current liabilities

= (154,000+210,000+350,000) / 344,000

= 2.08

7 0
3 years ago
What is a disadvantage of the payback method?
HACTEHA [7]

The statement " It eliminates the inflows of cash earned following the payback period and time value of money" is the disadvantage of the payback method

The payback period is the period thats tells the time period in which the initial investment that was made should be recovered.

It is to be measured in years normally.

For finding the disadvantage, we need to find out the following information related payback period

  1. It is easy to calculate
  2. The cash flows earned after the payback period should not be used
  3. There is no requirement to determine the present value factor for measuring the payback period.
  4. Also, it does not use for distinct cheap projects from lower ones

So this is the reason this method ignored the times value of money

Therefore, we can conclude that, the correct option is b.

Learn more about the payback method here: brainly.com/question/16255939

5 0
3 years ago
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