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Montano1993 [528]
3 years ago
5

Describe three ways that a business can grant credit. Why might granting credit to other businesses be risky for a supplier?

Business
1 answer:
ludmilkaskok [199]3 years ago
4 0

Answer:

The Best 5 Reasons For Businesses to Extend Credit

Additional Cash Flow. If customers can put off payment without consequences, they will. ...

Additional Sales

Additional sales will come in the form of customers spending more money on your products and services. ...

Higher Customer Loyalty. ...

Leverage During Negotiations. ...

Simple Technique For Extending Credit.

When selling on credit, there is a chance that the customer may go bankrupt and fail to pay you. The company will lose revenue. The company will also have to write off the debt as bad debt

hope it helps you

mark me as brainliest dude!!

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Requirements
Stella [2.4K]

Journal entries:

Nov. 1, common stocks issued

Dr Cash 41,000

    Cr Common stock 41,000

Nov. 4, office supplies and furniture purchased

Dr Office supplies 1,200

Dr Furniture 2,300

    Cr Accounts payable 3,500

Nov. 6, service revenue

Dr Cash 2,100

    Cr Service revenue 2,100

Nov. 7, land purchased

Dr Land 27,000

    Cr Cash 27,000

Nov. 10, service revenue

Dr Accounts receivable 800

    Cr Service revenue 800

Nov. 14, payment of furniture

Dr Accounts payable 2,300

    Cr Cash 2,300

Nov. 15, wages expense

Dr Wages expense 1,470

    Cr Cash 1,470

Nov. 17, collection of accounts receivable

Dr Cash 500

    Cr Accounts receivable 500

Nov. 20, service revenue

Dr Accounts receivable 680

    Cr Service revenue 680

Nov. 25, received cash in advance

Dr Cash 1,900

    Cr Unearned revenue 1,900

Nov. 28, service revenue

Dr Cash 3,100

    Cr Service revenue 3,100

Nov. 29, purchase prepaid insurance

Dr Prepaid insurance 840

    Cr Cash 840

Nov. 30, wages expense

Dr Wages expense 1,470

    Cr Cash 1,470

Nov. 30, rent expense

Dr Rent expense 650

    Cr Cash 650

Nov. 30, utilities expense

Dr Utilities expense 650

    Cr Accounts payable 650

Nov. 30, dividends distributed

Dr Retained earnings 2,800

    Cr Dividends payable 2,800

Dr Dividends payable 2,800

    Cr Cash 2,800

Since there is not enough space here, I prepared an excel spreadsheet with the T-accounts.

In order to prepare a trial balance sheet, I must first prepare an Income Statement:

Service revenue              $6,680

Wages expense             ($2,940)

Rent expense                   ($650)

<u>Utilities expense              ($650)</u>

Net income:                    $2,440

Retained earnings = $2,440 (net income) - $2,800 (dividends) = ($360)

        STEWART CO.

     BALANCE SHEET

       NOV. 30, 2018

Assets:

Cash $12,070

Accounts receivable $980

Prepaid insurance $840

Office supplies $1,200

Furniture $2,300

Land $27,000

Total assets: $44,390

Liabilities and stockholders' Equity:

Accounts payable $1,850

Unearned revenue $1,900

Common stock $41,000

Retained earnings ($360)

Total liabilities and stockholders' equity: $44,390

Download pdf
8 0
3 years ago
With negotiated transfer pricing, what is the minimum transfer price if operating at capacity? What is the minimum transfer pric
dezoksy [38]

Answer:

Minimum transfer price when operating at capacity is the marginal cost + opportunity cost

Maximum transfer price is marginal cost only, when not operating at capacity.

Explanation:

Minimum transfer price when operating at capacity is the marginal cost + opportunity cost because when operating at capacity there are 2 elements involved - the cost at which it has made the units it will be transferring to another department within the organisation, and the profit it would have made if it had sold those units to others (opportunity cost)

Maximum transfer price is marginal cost only, when not operating at capacity because the department is constrained, it can only produce for the satisfaction of internal demand, not external customers; hence there is no case of opportunity costs.

8 0
3 years ago
The Science of Macroeconomics
Yuliya22 [10]

Answer:

Macroeconomics deals with events that affects the entire country or industry as a whole while Microeconomics affects individual members of the economy such as companies and people.

A. Congress recently passed the Tax Cuts and Jobs Act of 2017. MACRO

This Act will affect the entire nation so it will fall under Macroeconomics.

B. Amazon now has a 40% share of all e-commerce revenues. MICRO

Amazon is a single company in the market so things related to it will be considered on a micro economic level.

C. Tuition at the local university increased 11% from last year. MICRO

The local university like Amazon, is a single body in the economy and so they are a microeconomic player.

D. The U.S. unemployment rate fell below 4% in 2018. MACRO

The unemployment rate of a nation relates to the nation as a whole so this will fall under macroeconomics.

3 0
3 years ago
I have a one page report on a trianing plan describing the topics you would include in a customer focused listening workshop. I
bearhunter [10]

Answer:

Topic: Customer focused Listening Workshop

Explanation:

Begin with the introduction of who is a customer and the definition of terms or words like listening and focused.

Thereafter, highlight the various types or categories of customers and their various behaviors. Back it up with possible images or signs that represents their various behavioural pattern

Then proceed to explain the ways to listen to them and get them in order to get them to purchase or secure their loyalty to your product and services.

Also explain how glistening to a customer could have its pros and cons in terms of been positive and negative to your product and services.

Coin out a question such as 'How would you manage a customer with temperament, such that you must get him to patronize your product or services using the listening approach?'

Do a small group session to discuss the above question for about five minutes and make them to report back to the general house.

Take some moment to do a final summary, conclusion and recommendations before closing the workshop.

8 0
3 years ago
First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City Bank pays 8 percent interest
Anarel [89]

Answer:

$14,343.25

Explanation:

First city bank pays 8% simple interest in a savings account

Second city bank pays 8% interest compounded annually

$68,000 is deposited deposited in each of the bank

The first step is to calculate the simple interesr per year of first city bank

= principal × rate

= 68,000 × 8/100

= 68,000 × 0.08

= 5,440

The interest earned for the period of 8 years can be calculated as follows.

= 5,440 × 8

= 43,520

The balance at the end of 8 years can be calculated as follows

= 68,000 + 43,520

= 111,520

The next step is to calculate the future value of second city bank

= principal × (1+R)^n

= 68,000 × (1+8%)^8

= 68,000 × (1+0.08)^8

= 68,000 × 1.08^8

= 68,000 × 1.85093021

= 125,863.25

Therefore the amount of money earned from second city bank at the end of 8 years can be calculated as follows

= 125,863.25-111,520

= 14343.25

Hence the money that was earned from second city bank at the end of 8 years is $14,343.25

8 0
3 years ago
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