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3 years ago

What account is a affected when goods are sold on credit

Business

1 answer:

katovenus [111]3 years ago

7 0

Answer: account receivable account

Explanation:

The accounts receivable account simply refers to an asset account on the balance sheet which represents the money that is due to a business in the short term. It should be noted that the accounts receivables are created when goods are bought on credit by the buyer.

In such case, when the goods are sold on credit to the buyer, this will lead to a debit on the account receivable account and this will bring about an increase to the company's assets.

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3 years ago

Harrison Ford Company has been approached by a new customer with an offer to purchase 10,000 units of its model IJ5 at a price o

pantera1 [17]

Answer:

For the special order the company will not incur any additional fixed cost as the special order is within the normal range of production.

Sales ( 10000 * 5 ) 50000

(-) Direct materials ( 10000 * 1.75 ) 17500

(-) Direct labor ( 10000 * 2.50 ) 25000

(-) Variable overhead ( 10000 * 1.50 ) 15000

Income / (loss) (7500)

Required 1 :

Answer : Reject

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Answer : Decrease by 7500

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3 years ago

Avicorp has a $10 million debt issue outstanding, with a 6% coupon rate. The debt has semiannual coupons, the next coupon is due

rjkz [21]

Answer:

Explanation:

Pretax cost of debt is the annual rate(YTM) of the bond. Using a financial calculator, input the following to calculate it;

N = 5*2 = 10

PV = -(95% *10,000,000) = -9,500,000

Coupon PMT = (6%/2)*10,000,000 = 300,000

FV = 10,000,000

then compute semiannual rate; CPT I/Y = 3.604%

convert to annual rate = 3.604*2 = 7.21%(this is the pretax cost of debt)

After tax cost of debt is calculated because interest payable on debt has tax shield. The formula is as follows;

Aftertax cost of debt = pretax cost of debt (1-tax)

AT cost of debt = 7.21% (1-0.40)

AT cost of debt = 4.33%

8 0

3 years ago

Mott Company's sales mix is 3 units of A, 2 units of B, and 1 unit of C. Selling prices for each product are $34, $44, and $54,

Airida [17]

The break even point in composite units is 5000 units.

Break even point

The Break-even point is calculated by dividing the fixed cost by the contribution margin per unit.

For this sales mix, the contribution margin per unit is the aggregate of each contribution margin. Contribution margin is calculated by subtracting variable cost from the selling price

Contribution margin for A is $20- $12 = $8 x 3 units

Contribution margin for B is $ 30 - $18 = $12 x 2 units

Contribution margin for C is $40 -$24= $16 x 1 unit

Total contribution margin per unit will be

(8 x 3) x (12 x 2 ) x( $16 x 1)= $64

Break-even point = $320,000 /64

Learn more about break even point here :

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2 years ago

If a salesperson notices a billing error in an order, he or she should: Group of answer choices let the finance team take a call

bazaltina [42]

Answer:

c. Correct billing problems without being prompted by the customer.

Explanation:

If a salesperson notices a billing error in an order, he or she should <u>correct billing problems without being prompted by the customer.</u> A Salesperson should act there after the notice and fix the billing problems for the customer as it may result in confusion later.

6 0

3 years ago

What account is a affected when goods are sold on credit ​

What account is a affected when goods are sold on credit