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3 years ago

When a buyer returns merchandise purchased for cash, the buyer will record the transaction as a:____

Business

1 answer:

Gwar [14]3 years ago

7 0

Answer:

c. Debit to Cash and a credit to Merchandise Inventory

Explanation:

When a buyer returns goods these are return outwards,

The correct entries to record them would be to debit cash as goods have been returned and credit the merchandise purchased so,

Debit cash account with the amount of goods returned

Credit Merchandise inventory with the amount of goods returned.

Hope that helps.

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Outstanding stock of the Blossom Corporation included 30000 shares of $5 par common stock and 8000 shares of 5%, $10 par non-cum

Arlecino [84]

Answer:

$6,500 was distributed to preferred shareholders

Explanation:

Dividend distributed to preferred share is based on the predetermined rate associated with these share. When the dividend is declared preferred share dividend is paid first. The remainder is distributed between the common stockholders.

Value of Preferred share = 8000 shares x $10 par value = $80,000

Preferred Dividend = $80,000 x 5% = $4,000

Accrued dividend of 2016 = $4,000 - $1500 = $2500

Total Dividend Accrued = $2,500 + $4,000 = $6,500

3 0

3 years ago

Please HELP!!!!!

mel-nik [20]

No because they aren't Fair

4 0

3 years ago

Without proposed Project A, a firm‘s estimated cash flows over the next 3 years is $275M. With proposed Project A, the firm

Gala2k [10]

Answer:

option B) $ 25M

Explanation:

Data provided in the problem:

Without proposed project A,

The estimated cash flows over the next 3 years = $ 275M

With the proposed project A,

The estimated cash flows over the next 3 years = $ 300M

Now, the amount of incremental cash flows associated with Project A will be calculated as;

Incremental cash flow = Cash flows (With Project A) - Cash flows (Without Project A)

on substituting the values, we get

Incremental cash flow = $ 300M - $ 275M = $ 25M

Hence, the correct answer is option B.

0 0

3 years ago

Brewco sells coffee makers for $120 each. the firm currently has variable costs per unit of $65. if brewco is able to reduce its

zhannawk [14.2K]

Contribution margin is calculated via subtracting the variable cost per unit to the sales price per unit. In equation, we have

Contribution margin = Sales Price - Variable Cost

Contribution margin ratio is calculated via dividing the contribution margin with the sales price. In equation, we have

Contribution margin ratio = contribution margin/sales price

Substituting the given values,
Contribution margin ratio for 65$ variable cost = (120-65)/120 = 0.4583
Contribution margin ratio for 58$ variable cost = (120-58)/120 = 0.5167

<em>ANSWERS: 0.4583 or 45.83% and 0.5167 or 51.67%</em>

8 0

3 years ago

Champaign Corporation purchases 45% of the common stock of Rockville, Inc. at a purchase price of $21.6 million cash. During the

lara [203]

Answer:

The correct option is A,$ 22,687,200

Explanation:

The year end balance of the equity investment of Champaign Corporation at year end is the initial price paid for the investment plus share of net income in the year less Champaign Corporation's share of cash dividends paid in the year as shown below:

Initial cost of investment $21,600,000

share of net income($2,960,000*45%) $ 1,332,000

Less:share of dividends($544,000*45%) ($244,800)

Year end balance of equity investment $ 22,687,200

The correct option is A.

It is important to note that dividends were deducted because it is more ike a cash out from the investment

5 0

3 years ago