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olga55 [171]
3 years ago
10

arter Company sells merchandise on account for $4,000 to Hannah Company with credit terms of 2/10, n/30. Hannah Company returns

$600 of merchandise that was damaged, along with a check to settle the account within the discount period. What entry does Carter Company make upon receipt of the check?
Business
1 answer:
timama [110]3 years ago
6 0

Answer:

The answers are:

  • Cr Accounts receivable $4,000
  • Dr $3,332 Cash
  • Dr $68 Sales discount
  • Dr $600 returned merchandise (damaged)

Explanation:

The credit terms of 2/10, n/30 means that if Hannah Company pays within ten days, they will get a 2% discount, or they have thirty days to pay the full receipt.

Hannah's check should be for:

($4,000 - $600) x 0.98% = $3,400 x 0.98% = $3,332  

Arter Company should record the following entries:

Cr Accounts receivable $4,000

Dr $3,332 Cash

Dr $68 Sales discount

Dr $600 returned merchandise (damaged)

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3M Co. reports beginning raw materials inventory of $902 million and ending raw materials inventory of $855 million. 3M purchase
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Answer:

$3693 million

Explanation: The materials used in the primary stage of production is called

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Raw material used is the amount of raw materials consumed by the entity

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therefore,

Raw materials used = $902 million + $3646 million - $855 million

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3 years ago
What is the advantage and disadvantage of air transport in tourism industry
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3 years ago
A company makes travel umbrellas. Its fixed costs are $1000 a week and its variable costs for one batch of umbrellas per week is
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Answer:

Break-even point in units= 93 units

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Giving the following information:

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To calculate the break-even point in units, we  need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

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sabrina company recorded an adjusting entry for salaries owed to employees at the end of the year. as a result of this entry, sa
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