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V125BC [204]
3 years ago
6

On March 1, Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, $254,500, terms n/30. The cost of

the merchandise sold is $152,700. On March 5, Showcase Co. issues a credit memo for $30,000 for merchandise returned prior to Balboa Co. paying the original invoice on March 29. The cost of the merchandise returned is $17,500.
Journalize Balboa Co.’s entries for (a) the purchase, (b) the return of the merchandise for credit, and (c) the payment of the invoice. Refer to the Chart of Accounts for exact wording of account titles.
Business
1 answer:
Lisa [10]3 years ago
7 0

Explanation:

The journal entries are as follows

a.

Merchandise Inventory A/c $254,500

              To Accounts payable A/c $254,500

(Being merchandise purchased on credit)

b.

Account payable Dr $30,000

         To Merchandise inventory $30,000

(Being the merchandise returned is recorded)

c.

Account payable Dr $224,500       ($254,500 - $30,000)

        To Cash $224,500

(Being the payment of the invoice is recorded)

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That is false, he took a lot more time trying to find India and instead found America
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3 years ago
Read 2 more answers
An oil and gas producing company owns 42,000 acres of land in a southeastern state. It operates 630 wells which produce 18,000 b
valkas [14]

Answer:

The bid amount should be $13,200,264.

Explanation:

An oil and gas producing company owns 42,000 acres of land in a southeastern state.

It operates 630 wells which produce 18,000 barrels of oil per year and 1.7 million cubic feet of natural gas per year.

The revenue from the oil is ​$1,800,000 per year and for natural gas the annual revenue is ​$581,000 per year.

Total Annual Revenue

= Revenue from oil + Revenue from gas

= $1,800,000 + $581,000

= $2,381,000

The bid amount should be the present worth of total annual revenue.

Present Worth of total annual revenue

= Revenue \times\ \frac{( 1 + i )^{n} -1 }{i (1 + i)^{n} }

= $2,381,000\ \times\ \frac{( 1 + 0.11 )^{9} -1 }{0.11 × (1 + 0.11)^{9} }

= $2,381,000\ \times\ \frac{( 1.11 )^{9} -1 }{0.11 × (1.11)^{9} }

= $2,381,000\ \times\ \frac{2.5580 - 1 }{0.11 × 2.5580 }

= $2,381,000\ \times\ \frac{1.5580 }{0.281}

= $2,381,000\ \times\ 5.544

= $13,200,264

7 0
3 years ago
Ramort Company reports the following cost data for its single product. The company regularly sells 20,000 units of its product a
kotykmax [81]

Answer:

Contribution margin per unit= $33

Explanation:

Giving the following information:

The company regularly sells 20,000 units of its product for <u>$60 per unit. </u>

<u>Direct materials $ 10 per unit </u>

<u>Direct labor $ 12 per unit</u>

<u>Overhead costs for the year Variable overhead $ 3 per unit </u>

Fixed overhead per year $ 40,000

Selling and administrative costs:

<u>Variable $ 2 per unit </u>

Fixed $ 65,200

Normal production level= 20,000 units

Contribution margin= Selling price - unitary variable costs

Unitary variable cost= direct materials + direct labor + variable manufacturing overhead + variable selling and administrative

Unitary variable cost= 10 + 12 + 3 + 2= $27

Contribution margin per unit= 60 - 27= $33

3 0
3 years ago
Identify the statement that is incorrect. a. Higher financial leverage involves higher risk. b. Risk is higher if a company has
Savatey [412]

Answer:

c. Risk is higher if a company has more assets.

Explanation:

Financial leverage is the measurement of risk based on the debt of the company. More liabilities involves high risk  because company does not have enough to pay for the it's liabilities.  If company has more assets then the risk if lower because company is able to pay its liabilities from its assets. The statement " Risk is higher if a company has more assets" is incorrect.

6 0
3 years ago
In Year 2, the Denim Company bought an acre of land that cost $15,600. In Year 5, another company purchased a nearby acre of lan
Hatshy [7]

Answer:

The acre of land that it owns should be reported at $15,600

Explanation:

At the time of recording of the fixed assets, the fixed assets should be recorded at purchase cost or historical price

Since in the question, the land was purchased at $15,600 and various other land is also purchased in year 5. Moreover, the value of the land would also be increased to $27,600

But at the time of recording, the balance sheet would show at the purchase price i.e $15,600

3 0
3 years ago
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