Answer:
Debit Cash $1,470
Debit Expense - Credit card fee $30
Credit Sales revenue - $1,500
Explanation:
The sales revenue for Appliance world will be $1,500 as this is the gross sale made at point of sale.
- Since, this sale is made via credit card, the credit card fee will be <u>deducted</u> from the sales revenue,
- Difference will be <u>cash received</u> after deducting the credit card fee from sales revenue.
The fee charged by credit card company is the <u>expense</u> for ApplianceWorld:
The fee would be charged at the purchase made by the customer i.e. $1,500×2% = $30
The cash that would be recovered to ApplianceWolrd will be $1,500 - $30 = $1,470 (net of the credit card fee).
<u>Journal entry</u>
Debit (increase) Cash $1,470
Debit (increase) Expense - Credit card fee $30
Credit (increase) sales revenue - $1,500
Answer:
Oct 6 Cash 7344 Dr
Interest Revenue 144 Cr
Notes Receivable 7200 Cr
Explanation:
First we calculate the day on which notes receivable is due.
We start from July 9 as being our first day and in July there are 31 days so 31 - 8 = 23
In August there are 31 days.
In September there are 30 days.
So total days till september are 22+31+30 = 84
So the note is due to be received on October 6.
The amount of interest due is 7200 * 0.08 * 90/360 = $144
The entry to be passed on Oct 6 is a debit to cash for the amount of principal and interest (7200+144) and a credit to interest revenue of 144 and notes receivable of 7200
C. ROE measures how much equity holders are earning, while ROA measures how efficiently the bank is being run.
ROE = net income/ shareholder's equity
ROA= net income/total assets
No it is not’ people say it’s real but no don’t believe that
