Bright futures funds three scholarships.
Answer:
Dr. Cr.
July 19
Cash $792
Discount expense $8
Account Receivable $800
Explanation:
The term 1/15, n/30 mean there is a discount of 1% is available on the sales value, if payment is made within 15 days of sale with credit term of 30 days.
The sale of $900 was made on July 10 and discount period is until July 25.
On July 12 goods amounting $100 was returned and now the amount due from the customer is $800 ( $900 - $100 ).
The payment made on July 19 is actually in the discount period and it is eligible for the discount as it is made before July 25.
Discount = Amount due x Discount rate
Discount = $800 x 1% = $8
$792 Cash received against the sale made on July 10 and discount $8 is expensed. Total of $800 is credited from the account receivable account to eliminate it.
Revenue in a business transaction is recognized <u>When </u><u>goods </u><u>or </u><u>services </u><u>are </u><u>provided </u><u>to </u><u>customers </u><u>and at the </u><u>amount expected </u><u>to be </u><u>received </u><u>from the customer. </u>
<u />
<h3>What is revenue?</h3>
- Refers to the amount paid to a company for the provision of goods and services.
- Can only be recognized when that good or service has been provided to the customer.
Until a good or service is provided to the customer who bought it, revenue should not be recognized because it has not been earned by a company.
In conclusion, option C is correct.
Find out more on revenue recognition at brainly.com/question/1380073.
Answer:
A) Marginal private cost= 50
B) Total Marginal social cost to society = 70
Explanation:
A) In order to find the marginal private cost we will use the firms production cost formula as it is the private cost that the firm is enduring and is only relevant to the firm's cost and not the society's cost.
In order to find the marginal unit cost of the 10th unit produced will will replace Q in the formula by 10 as it represents quantity.
MC= 10 + 4Q
MC= 10 + 4(10)
MC= 10 +40 = 50
B) In order to find the marginal cost to society we will add the marginal external cost of the 10th unit to its private cost. We already know the marginal private cost is 50 now we need to find the marginal external cost to it to find the total marginal cost.
Marginal external cost = 2Q
Q= 10
Marginal external cost = 2*10 =20
The total Marginal cost to society= 50 + 20= 70
