Answer:
When an enterprising individual pursues a lucrative opportunity, it is known as entrepreneurship
Explanation:
The entry to close the dividends account at the end of the year:
It is given that Canopy services paid k. Canopy, the sole shareholder of canopy services, $5,700 in dividends during the current year. The entry to close the dividends account at the end of the year shall be as follows:
Dec. 31, Year;
Retained earnings Debit $5,700
Dividends Credit $5,700
(Being dividends closed to retained earnings)
Cash discount is a reduction in total price of goods and services for prompt payment.
Explanation:
It is given to enhance prompt payment and to discourage trade credit.
Let's assume a Company offers some certain percentage of discount for prompt payment. A goods cost #100,000 for instance. And then for payment within 10 days, 20% discount will be given, payment between day 11 to 15 days of purchasing the goods 15% discount and payment within 16 to 20 days attracts 10%. It means any customer who pays within the first 10 days of purchasing the goods get a discount of #20,000 (i.e 20% of #100,000), hence pays #80,000 for the good. A payment within day 11 to 15 of purchase gets 15% discount, so is allowed only #15,000 (i.e 15% of #100,000), so pays #85,000 while payment made within day 16 to 20 of purchase attracts only #10,000 discount (i.e 10% of #100,000), so he pays only #90,000. No discount will be given to payment made above 20 days of purchase and the full #100,000 will be paid.
Cash discount is also called Early payment discount
Answer:
An Accrued Receivable transaction
Explanation:
Before the receipt of cash recording a revenue is the example of accrued receivable because product is sold or services are already been performed on which basis transaction is occurred and recorded. So, the receivable is recorded against the revenue entry.
The journal Entry for this transaction will be as follow
DR. Account receivable xxx
CR. Revenue xxx
