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Damm [24]
3 years ago
5

A company factored $40,000 of its accounts receivable and was charged a 3% factoring fee. The journal entry to record this trans

action would include a:
Multiple Choice
a. Debit to Cash of $40,000 and a credit to Accounts Receivable of $40,000.
b. Debit to Cash of $38,800, a debit to Factoring Fee Expense of $1,200, and a credit to Accounts Receivable of $40,000.
c. Debit to Cash of $40,000 and a credit to Notes Payable of $40,000.
d. Debit to Cash of $41,200 and a credit to Accounts Receivable of $41,200.
e. Debit to Cash of $40,000, a credit to Factoring Fee Expense of $1,200, and a credit to Accounts Receivable of $38,800.
Business
1 answer:
bezimeni [28]3 years ago
3 0

Answer:

Correct answer is B, Debit cash $38,800, debit factoring fee expense $1,200 and a credit of Accounts receivable of $40,000

Explanation:

Factoring is one way to raise fund for immediate use of the company. It is a way to sell accounts receivable of the company. The above-mentioned problem is to sell accounts receivable (factored) with the corresponding factoring fee of 3% and that is $1,200 (40,000 x 3%). In effect of this fee, the company will receive cash less than the amount of its accounts receivable sold. The company will record the inflow of cash at $38,800 (40,000 - 3%) and will also recognize an expense incurred during the factoring in the amount of $1,200 and finally will credit the sold accounts receivable in the amount of $40,000.

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If it costs $75,000 to put on an event and total revenue is $135,000, what is the profit as a percentage of revenue?
Nuetrik [128]

Answer:

44.44%

Explanation:

Profit is obtained by subtracting cost from revenue.

I,e.,

Profit = revenue - cost.

In this case,

Profit = $135,000 - $75,000

Profit = $60,000

As a percentage of revenue

= $60,000/ $135,000 x 100

= 0.44444 x 100

= 44.44 %

4 0
2 years ago
Thane Company is interested in establishing the relationship between electricity costs and machine hours. Data have been collect
dangina [55]

Answer:

The correct option : B. Cost = $ 130.00 + $ 5.90 x Machine - hours

Explanation:

Let's use the following method to solve the given problem

Now applying the high-low method of cost estimation,

High => November, 5,300 machine hours

Low => March, 2,300 machine hours

Arranging it in a simultaneous equations for total cost:

We can let fixed cost per month to be F, and the variable cost per machine -hour be V, and the number of machine-hours be Q.

Therefore

Total cost = F + VQ

High => F + 5,300Q = $ 31,400

Low => F + 2,300Q = $ 13,700

Subtracting Low from High, we have 3,000Q = $ 17,700 or Q = $ 5.90 per machine hour ................equation one

F = $ 13,700 - ( 2,300 x $ 5.90) = $ 130......................................................................equation two

6 0
3 years ago
Dyson cordless vacuum cleaners offer heavy-duty performance for cleaning all floor types. The Dyson is also very lightweight and
pav-90 [236]

Because the Dyson provides the user with really clean floors and carpets, the Dyson is an example of utilitarian value

<h3>What is a Utilitarian Value?</h3>

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3 0
2 years ago
A reduction in the number of sellers will shift the supply curve to the right. Please select the best answer from the choices pr
kari74 [83]
That statement would be false

Reducing the number of sellers means that the quantity of the products that available in the market is also reduced

This will cause the curve to move to the left ( it goes right if the quantity of the products is increased)
3 0
3 years ago
Read 2 more answers
Scottish Company manufactures a variety of toys and games. John Chisholm, president, is disappointed in the sales of a new board
Schach [20]

Answer:

c. $110,000

Explanation:

The computation of profit (loss) from Option One is shown below:-

Profit (loss) from Option One =  Sold unit × (Cut the price - Variable cost) - Fixed cost

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= $110,000

Therefore for computing the profit (loss) from Option One we simply applied the above formula.

4 0
3 years ago
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