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Nina [5.8K]
3 years ago
10

Travis Company purchased merchandise on account from a supplier for $7,500, terms 2/10, net 30 on December 26. Travis Company pa

id for the merchandise on December 31, within the discount period. Required: Under a perpetual inventory system, record the journal entries required for the above transactions. Refer to the Chart of Accounts for exact wording of account titles.
Business
1 answer:
leva [86]3 years ago
7 0

Answer:

December 26

Dr. Inventory             $7,500

Cr. Account Payable $7,500

December 31

Dr. Account Payable     $7,500

Dr. Discount Received  $150

Cr. Cash                          $7,350

Explanation:

Credit terms of 2/10, n/30 means there is a discount of 2% is available on payment of due amount within discount period of 10 days after sale with net credit period of 30 days.

Purchase = $7,500

As payment is made within discount period, so the discount will be availed.

Discount = $7,500 x 2% = $150

Payment = $7,500 - $150 = $7,350

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Answer:

b. X1 + X2 ≤ X3 + X4

Explanation:

b. X1 + X2 ≤ X3 + X4

The situation tells us that the sum of both 1 and 2 must be equal to the sum of 3 and 4 which is true, because if both projects 1& 2 are selected then the both projects 3 & 4 must also be selected.

The rest of the choices are wrong because

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If we leave project 3 then project 4 cannot be left out.

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3 years ago
On January 1, 2021, Tiny Tim Industries had outstanding $1,000,000 of 9% bonds with a book value of $970,500. The indenture spec
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Answer:

loss at extinguishment 8,122.50 dollars

Explanation:

we should compare the amount we pay for the bonds and the book value of the bonds:

book value   978,877.50*

call price   <u>   (987,000.00)  </u>

loss                    (8,122.50)

*We are given with the value at January 1st we must adjust for the value at july 1st using effective-rate method

970,500 x 11%/2 = 53,377.5 interest expense

1,000,000 x 9%/2 = 45,000 cash outlay

amortization               8,377.5

<em><u /></em>

<em><u>carrying value:</u></em>

970,500 + 8,377.5 = 978,877.5

6 0
3 years ago
Cor-Eng Partnership was formed on January 2, 20X1. Under the partnership agreement, each partner has an equal initial capital ba
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$20,000

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No need to dwell on the other amounts. Just focus on what was being asked and you'll not get lost ^_^

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Answer:

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The goal is to create consumer demand before kickstarting production.

In this case, we have a perfect example of a pull strategy, because Hyun will not start production unless it has proof of demand from a customer, the proof being a order.

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