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diamong [38]
3 years ago
10

Blair Automotive performed mechanic services for two customers. The first customer owed $5,280 for services, so Blair Automotive

made them sign a written promise to pay in full after six months with an annual interest rate of 3.5%. The second customer owed $326 for services, so Blair Automotive plans to send them a bill within the next two weeks, due within 30 days of receipt of the bill. What is the difference between these two transaction?
Business
2 answers:
julia-pushkina [17]3 years ago
7 0

Answer:

<em><u>The answer is</u></em>: <u>That the first is a contract and the second a record.</u>

<u />

Explanation:

The first is a contract of sale and purchase promise is a preparatory contract, that is, it is the preparatory or initial part of another contract, which is the contract of sale with which the promise in the promise contract materializes or materializes, and that requires the signature of both parties.

The second is a billing record on the invoice already issued.

<em><u>The answer is</u></em>: <u>That the first is a contract and the second a record.</u>

drek231 [11]3 years ago
3 0

Answer:

The first transaction will be recorded as a note receivable, whereas the second transaction will be recorded as an account receivable.

Explanation:

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The firm that would suffer the greatest decline in profits if sales volume declines by 15% is Mason Company.

The cost of a company is made up of fixed cost and variable cost. Fixed cost is the cost that does not vary with output of the company. It remains fixed no matter the level of output. An example of fixed cost is rent. Variable cost is the cost that varies with output. If output increases, variable cost increases and if output falls, output decreases.

If sales volume decreases, the output of Mason Company would decline more compared with the output of Kelley company because it has a higher fixed cost. So, we when sales reduces, its cost would would not reduce as many as the cost of Kelley company.

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