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Kipish [7]
3 years ago
11

Platen purchased inventory on August 17 and received an invoice with a list price amount of $5,900 and payment terms of 4/10, n/

30. Platen uses the net method to record purchases. For what amount should Platen record the purchase
Business
1 answer:
ch4aika [34]3 years ago
7 0

Answer:

$5,664

Explanation:

Calculation of the amount that Platen should record the purchase.

Using this formula

List price -(Percentage of payment term × list price)

Let plug in the formula

$5,900 -(4%×5,900 )

=$5,900-$236

=$5,664

Therefore Platen should record the purchase on August 17 as a:

Debit to Purchases (periodic system) and a Credit to Accounts Payable for $5,664

Therefore the amount that Platen should record the purchase will be $5,664

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Segment margin is referred to the net profit or the net loss that a particular segment of a business makes. Segment margin is used to know segments that are performing well.

It is also used to know the long-run profitability of a particular segment as it shows the margin that is available after the cost has been covered by a segment.

Based on the above illustration, the statement that isn't true will be "the segment margin is obtained by deducting the common fixed costs that have been allocated to a segment from that segment's contribution margin".

This is false as segment margin is gotten after the traceable fixed costs of a segment has been subtracted from the contribution margin of that particular segment.

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Answer:

$519,799.59

Explanation:  

Discount rate = R = 14.50%

Year    Cash flows     Discount factor     PV of cash flows

1            218,000.00          0.873362            190,393.0131  

2           224,000.00          0.762762           170,858.6793

3           238,000.00          0.666168            <u>158,547.9011</u>

          Total of PV = NPV =                           <u> $519,799.59</u>

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Note:

Df = 1/(1+R)^Year

PV of cash flows = Cash flows x Df

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The answer to your question is,

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