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vladimir1956 [14]
4 years ago
13

How do i journalize purchased merchandise on account from galsten co., $360,000, terms n/30?

Business
1 answer:
olga nikolaevna [1]4 years ago
8 0
To record the purchase of merchandise there are two methods:

1) under Perpetual Inventory System the entry is
Inventory (Dr) 360000
Accounts payable (Cr) 360000

2) under Periodic Inventory System the entry is
Purchase (Dr) 360000
Accounts payable (Cr) 360000
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3 years ago
Fishermen’s Corp. is considering purchasing a boat. If the boat was purchased, it is expected to receive $20,000 at the end of t
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Answer:

The boat today is worth 100,440 dollars

Explanation:

We need to solve for the present value of the payment Fishermen's Corp will receive for the boat:

We will apply the formula for lump sum to each \frac{Maturity}{(1 + rate)^{time} } = PV  

cash flow and then add them together

\frac{20,000}{(1 + 0.08)^{1} } = PV  

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1 20000  18, 518

2 40000 34,293

3 60000 47,630

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Read 2 more answers
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