1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Gekata [30.6K]
3 years ago
5

Z-Mart appropriately uses the installment sales method of accounting for its installment sales. During 2013, Z-Mart made install

ments sales of $300,000 and received payments of $135,000 on those sales. Z-Mart's gross profit margin is 30%.Prepare journal entries to record the sale, collection, and recognition of gross profit.
Business
1 answer:
Tresset [83]3 years ago
5 0

Answer:

                                        Dr.                  Cr.

Sale

Account Receivable    $300,000

Inventory                                          $210,000

Deffered Gross Profit                      $90,000

Payment Receipt

Cash                             $135,000

Account Receivable                        $135,000

Profit Recognition

Deffered Gross Profit  $40,500

Relaized Gross Profit                      $40,500

Explanation:

On sale a receivable is recorded and goods has been transferred to customer and its cost is been deducted from inventory. The Gross profit is deferred until the receipt of payment.

Deferred Profit = $300,000 x 30% = $90,000

Inventory cost = $300,000 - $90,000 = $210,000

Cash received from the customer, profit proportionated to the the cash receipt is realized gross profit.

Realized Profit = $135,000 x 30% = $40,500

You might be interested in
Present and Future Values for Different Periods:
DiKsa [7]

Answer:

1. $636

2. $674.16

3. $566.04

4. $534

Explanation:

PV = FV ÷ (1 + r/n)^(t × n)........(1)

PV = present value

FV = Future value

r = rate per period

t = number of years

n = number of compounded period per year

FV = P(1 + r/n)^(t×n)...............(2)

FV = Future value

P = principal

r = rate per period

n = number compounded period per year

t = number of year

NO 1.

P= $600

t = 1

n = 1

r = 6% = 0.06

Using equation 2

FV = 600(1 + 0.06/1)^(1 × 1) = $636

NO 2

P = $600

n = 1

t = 2

r = 0.06

Using equation 2

FV = 600(1 + 0.06/1)^(2 × 1) = $674.16

NO 3.

FV = $600

r = 0.06

t = 1

n = 1

Using equation 1

PV = 600 ÷ (1 + 0.06/1)^(1 × 1) = $566.04

NO 4.

FV = $600

r = 0.06

n = 1

t = 2

Using equation 1

PV = 600 ÷ (1 + 0.06/1)^(2 × 1) = $534

8 0
3 years ago
Physical or mental injuries caused by a crime are known as what?
maksim [4K]
Assault and battery because Battery is a criminal offense involving the unlawful physical acting upon a threat, distinct from assault which is the act of creating apprehension of such contact. In the United States, criminal battery, or simply battery, is the use of force against another, resulting in harmful, offensive or sexual contact.
5 0
3 years ago
Read 2 more answers
Jennifer works as a clerk in a company. The essential function of her job is producing memoranda using word processing software.
patriot [66]

Answer:

Americans with the Disability Act of 1990.

Explanation:

Crippling Arthritis can get worse with the time.If the is left untreated then the disease always attack five joints at least.So according to the Americans with the disability act.This act protects individuals form discrimination having disability.So the employer has to provide accommodations to Jennifer.

5 0
3 years ago
According to PCN analysis, service operations exist only within the area(s) of: a. independent processing.b. independent process
topjm [15]

Answer:

(D). surrogate interaction and direct interaction.

Explanation:

Process Chain Network (PCN) analysis involves designing an organization's processes in such a way that it brings about better interaction with customers.

The PCN analysis highlights three process areas which are; <u>surrogate interaction, direct interaction</u> and independent processing areas.

<em>Service operations only exist within the areas of </em><em>surrogate interaction and direct interaction</em><em>, because they require more interaction with customers and are more personal in nature.</em>

7 0
3 years ago
Read 2 more answers
What power has social media granted companies that they had never had before
VashaNatasha [74]
The social media have a lot of benefits to offer to companies, these benefits can not be derived from anywhere else. One of the benefits that businesses gain from social media is the opportunity to market and advertise their products, making their products known to people all over the world. Social media has made it possible for local companies to be known globally, thus increasing their status and profits. <span />
6 0
3 years ago
Other questions:
  • Which activity is a part of personal financial planning?
    15·2 answers
  • Which is true regarding elasticity of supply ?
    7·1 answer
  • Benefit of family buisness​
    5·1 answer
  • In a spreadsheet, what is a line of data organized vertically, from top to bottom? A. A row B. A column C. A table D. A cell
    5·2 answers
  • Which account has the lowest minimum balance requirement? Bank Account Terms and Conditions Account A Account B Account C Accoun
    13·2 answers
  • A mortgage broker advertises a 30-year fixed-rate loan at a 2.00% rate. After the borrower arrives at the office and begins an a
    11·1 answer
  • Julie evaluated her spending and found that she was spending about $75 more per month on transportation than she has bodgeted Sh
    11·1 answer
  • A construction firm can achieve a $15,000 cost savings in Year 1, increasing by $3000 each year for the next 5 years, by convert
    6·1 answer
  • What is the correct definition of harassment?
    6·2 answers
  • Helpppp!<br> what does AP stand for and what does it mean?<br><br><br><br> Thanks! :)
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!