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Ghella [55]
2 years ago
11

Cullumber Company buys merchandise on account from Bramble Company. The selling price of the goods is $790, and the cost of the

goods is $470. Both companies use perpetual inventory systems. Journalize the transaction on the books of both companies. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Account Titles and Explanation Debit Credit
Cullumber Company
(To record credit purchase of inventory)
Bramble Company
(To record credit sale)
(To record cost of merchandise sold)
Business
1 answer:
sergiy2304 [10]2 years ago
6 0

Answer:

Cullumber Company

Dr Inventory $790

Cr Accounts Pay $790

Bramble Company

Dr Account receivable $790

Cr Sales Revenue $790

Dr Cost of goods sold $470

Cr Inventory $470

Explanation:

Preparation of the journal entries on the books of both companies

CULLUMBER COMPANY

Dr Inventory $790

Cr Accounts Pay $790

(To record credit purchase of inventory)

BRAMBLE COMPANY

Dr Account receivable $790

Cr Sales Revenue $790

(To record credit sale)

Dr Cost of goods sold $470

Cr Inventory $470

(To record cost of merchandise sold)

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Answer:

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We can calculate the expected return of a firm by add dividend yield and growth rate but in this question, the growth rate is not given therefore we will find growth rate first with the available data

DATA

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Solution

Growth rate = Return on equity x retention ratio

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The accounts payable account is a/an option C: <u>liability; credit, </u>and it has a normal.

<h3>What do you mean by Account payable?</h3>

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Moreover, it is considered as the liability for each business because the company have to pay back its all due on particular period of time and it is credit in nature.

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government multiplier 2

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As disclosure it has a larget effect when the income tax is levied based on income rather than a flat rate.

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