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Lady bird [3.3K]
4 years ago
9

Gaur sells Jensen equipment under an arrangement whereby Gaur delivers the equipment on January 1, 2021 and receives payment on

June 30, 2022. When delivery of the equipment occurs, Gaur will record a journal entry that includes:
A. Debit to discount on notes receivable.
B. Credit to sales revenue.
C. Debit to cash
D. Credit to notes receivable
Business
1 answer:
S_A_V [24]4 years ago
5 0

Answer:

B. Credit to sales revenue

Explanation:

As per revenue recognition principle, revenue should be recognized when it is earned and not when cash is received.

As per accrual basis of accounting, revenue is to be recognized when the ownership of the goods has been passed by the seller to the buyer and there is reasonable assurance that payment would be received.

When a sale is effected and goods are delivered with reasonable certainty that payment would be received, following journal entry is recorded:

Accounts Receivable A/C                                Dr.

     To Sales Revenue

(Being equipment sold recorded)

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Lunderville Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 3,200 units
Mila [183]

Answer:

$64,000

Explanation:

The calculation of the cash disbursements for selling and administrative expenses on the December selling and administrative expense budget is given below;

= Variable Selling & Administrative Expenses + Fixed Seliing & Administrative Expenses - Depreciation

= 3,200 units × $3.10 + $60,800 - $6,720

= $64,000

4 0
3 years ago
Classical economists saw the depression as a political problem, not an economic problem. why?
navik [9.2K]

Classical economists saw the depression as a political problem, because they believed labor unions were stopping the wage level from moving  to the right level.

<h3>Classical economists</h3>

The Classical economists believe that the  great  depression experience  was as a result of  as a political problem.

The reason why they believe it was political problem was because  they felt the labor unions  who is the union responsible for fight for the right of workers were the one that  stop or prevent  the wage level from moving  to the right level.

Therefore they believed that labor unions were stopping the wage level from rising.

Learn more about Classical economists here:brainly.com/question/419703

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5 0
2 years ago
What are the likely reason(s) that the market for electricity is not perfectly competitive? Please select all that apply.
Ulleksa [173]

Answer:

The correct answer is option C and D.

Explanation:

A perfectly competitive firm has a large number of buyers and sellers. These sellers produce homogenous products. There is no restriction on entry and exit in the market. The firms are price takers.  

The market for electricity is not a competitive market because there are few sellers in the market and there is difficulty in entry and exit because of the high cost involved.

5 0
3 years ago
Presentment warranties protect the person who presents an instrument for payment.
arsen [322]
That statement is true
<span>presentment warranty represent the implied promise that by a payer to</span>upon the presentment<span> of the instrument for payment.
</span>If the drawee later accepted the draft that being made, The accepted will makes payment according to what presented in the draft.
3 0
4 years ago
Walberg Associates, antique dealers, purchased the contents of an estate for 575,000. Terms of the purchase were FOBshipping poi
spin [16.1K]

Answer:$583,680

Explanation:

FOB shipping, means the goods are free to the buyer up to the shipping point at this point the risks and rewards of ownership has been transferred to the buyer . He takes care of transportation, insurance and other costs incurred from that point till the goods gets to it's warehouse.

In the above scenario the cost to be beared by Walberg associates includes cost of goods of $575,000 plus cost of transportation of $2400, plus insurance cost of $5300, and the refurbishing cost of $980 all total $583,680.

5 0
4 years ago
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