Answer:
B) must be balanced by a statement that trading options can also result in significant losses.
Explanation:
Representatives do not trade securities by themselves, they only enter orders on behalf of their clients and following their clients' orders. That means that the clients assume the risk of losing money due to a bad investment. The clients are also the ones that benefit the most since it is their money being invested. Any statement that states the possibility of significant earnings, must also include the possibility of significant losses.
Answer: See explanation
Explanation:
a. If Barans Company pays the invoice within the discount period, what is the amount of cash required for the payment?
The amount of cash required for the payment will be:
Purchases: = $12,900
Less: Returns = $2500
Less: Discount = ($12900 - $2500) × 1% = ($10400 × 1%) = $104
Cash required for payment = $10296
b. What account is credited by Barans Company to record the return?
Based on the information above, the merchandise inventory will be credited.
Answer:
C) credit Sales Tax Payable for $21
Explanation:
Based on the information given In the same transaction, they must also CREDIT SALES TAX PAYABLE FOR $21 Calculated as:
First step is to calculate the sales tax element
Sales tax element = $371*6/106
Sales tax element= $21
Now let calculate what the Price exclusive of sales tax would be
Price exclusive of sales tax=$371-$21
Price exclusive of sales tax= $350
The correct journal entry should be:
Dr Cash $371
Cr Sales revenue $350
($371-$21)
Cr Sales tax payable $21
