Answer:
The company should credited on the Cash account and the Cash Discount Receipt for the settlement of the inventory with 10 days.
Explanation:
The detailed entry will be:
19th Sep
Dr Account Payable $40,000
Cr Cash $39,200
Cr Cash Discount Receipt $800
( to record payable settlement and the receipt of cash discount)
Working note: As the company paying with 10 days, the supplier will allow a 2% discount on it net inventory purchase ( 44,000 - 4,000 = $40,000)
Thus, the discount will be 40,000 x 2% = $800 and Cash repayment will be 40,000 x (1-2%) = $39,200.
Positives:
Credit card rewards.
Fraud protection.
Travel benefits
Negatives:
Interest charges.
Late fees.
Potential for credit damage.
A depository institution is a financial institution in the United States.
Answer:
Present value (PV) = $3,000
Interest rate (r) = 6% = 0.06
Number of years (n) = 2 years
Future value (FV) = ?
FV = PV(1 + r)n
FV = $3,000(1 + 0.06)2
FV = $3,000(1.06)2
FV= $3,000 x 1.1236
FV = $3.370.80
Explanation:
In this case, there is need to compound the present value for 2 years at 6% interest per annum. The formula to be applied is the formula for future value of a lump sum (single investment).
Answer:
The right option is (a)
Explanation:
Experimental research is a technique that helps to analyse the initial consumer response before officially launching the project. Kraft has launched an experimental research in California market to test their product and to analyse if the serving was acceptable with the new product. Experimental research generally helps to determine the flaws and loopholes in a product.
