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3 years ago

Company A sold merchandise with a list price of $4,200 and costing $2,300 on account to Company B.

Business

1 answer:

kompoz [17]3 years ago

7 0

Answer: d. The invoice amount is greater than $3,300 and less than $3,400.

Explanation:

The terms of the sale are FOB destination, 2/10, n/30. This means that company B will get a 2% discount if they pay in 10 days, if not, they will have to pay in 30 days.

The goods were sold at a list price of $4,200.

Company B returned $750 according to the Credit memo from Company A.

This reduces the transaction amount by that credit memo,

= 4,200 - 750

= $3,450

It is stated that Company B paid within the discount period which was 10 days so they get the discount for a total balance of,

= 3,450 * (1 - 2%)

= $3,381

The answer therefore is option D.

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Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $9.10; direct

Ghella [55]

Answer:

$0 cost or savings per unit

Explanation:

Cost to Buy

Purchase Price $31.40

and,

Costs to Make

Direct materials $9.10

Direct labor $13.10

Variable overhead $2.10

Fixed Overheads $7.10

Total $31.40

therefore

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Harris Company uses the allowance method of handling its credit losses. It estimates credit losses at one percent of credit sale

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Answer:

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Add Allowance for Doubtful Accounts $ 30600 Cr

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General Journal

Date Description Debit Credit

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Allowance for Doubtful Accounts 27000

December 31 Balance Sheet.

Accounts Receivable $450,000

Less: Allowance for Doubtful Accounts $57,600 ( 27000+ 30,600)

Accounts Receivable 392400

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A primary disadvantage of the corporate form of organization is:

yaroslaw [1]

Answer:

Corporate earnings are subject to double taxation.

Explanation:

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