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2 years ago

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]2 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

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Dolan Company's accounting records reflect the following inventories: Dec. 31, 2017 Dec. 31, 2016Raw materials inventory $300,00

Dafna11 [192]

Answer:

$700,000

Explanation:

The computation of the total raw materials used is shown below:

= Beginning raw material inventory + purchase of raw material - ending raw material inventory

= $250,000 + $750,000 - $300,000

= $700,000

We simply added the purchase and deduct the ending inventory to the beginning inventory so that the raw material used could come

7 0

3 years ago

1. Calculate GDP loss if equilibrium level of GDP is $10,000, unemployment rate 9.8%, and the MPC is 0.75.

Mars2501 [29]

Answer: 860

Explanation:

The gross domestic product is the value of the goods and services which are produced in a particular country from the year.

In this question, we are informed that we should calculate GDP loss if equilibrium level of GDP is $10,000, unemployment rate 9.8%, and the marginal prospensity to consume is 0.75.

The GDP loss will be calculated as:

= [(0.75 × 9.8)/100 × 10,000] + 125

= [(7.35/100) × 10000] + 125

= [(0.0735) × 10000] + 125

= 735 + 125

= 860

6 0

3 years ago

If the beginning Cash account balance of Moonbeam, Inc. was $40,000, the ending balance was $67,200, and the total cash paid out

lara [203]

Answer:

Cash Received during the period = $155200

Explanation:

The amount of receipts or cash received during the period can be calculated using the following formula.

Cash Received = Closing Balance + Cash Disbursements - Opening Balance

Cash Received = 67200 + 128000 - 40000

Cash Received = $155200

So, the cash receipts during the period are $155200.

7 0

3 years ago

What is the answer because I don’t know

Pachacha [2.7K]

D. the president show have enough power to lead.

5 0

3 years ago

Shakira has a balance of $202. 86 in her checking account on Saturday morning. She uses her debit card to pay her cell phone bil

Nataly [62]

Overdraft is a facility provided by bank to make expenses more than that of the balance present in the account of customers. This facility is provided to certain specified customers with high credibility.

Given

Balance is $202.86

Note: Payments will be recognized in descending order because it is the policy of bank to record the highest transaction first.

Payments made are :

$113.92

$80.73

$35.24

$16.89

<h3>Calculations</h3>

$\begin{aligned}\rm Overdraft&= Balance - Payments \\\\
\rm Overdraft&= \$202.86-\$113.92-\$80.73-\$35.24-\$16.89\\
\\\rm Overdraft&= \$ -43.92\end$

Therefore Shakira will be allowed to overdraw from the account as the amount of overdraft is less than $50.

Elaborating further, When we deduct the payments from the balance in descending order we reach on a conclusion that there will be 2 overdrafts made because after deducting $113.92 and $80.73 from the balance amount of $202.86 there will be 2 payments pending amounting $35.24 and $16.89 from the left balance of $ 8.21.

Therefore the correct option will be OPTION B i.e. 2 overdrafts.

Learn more about overdrafts here:

brainly.com/question/14182019

7 0

2 years ago