Answer:
Net Income for the year 234.500
Explanation:
Income Cash collected 375.000
Income Customer Owed 67.000
Total Income 442.000
Expenses Employees 127.000
Utilities 57.000
Rent 23.500 The effect on results of for 1 year was paid for 2 years in advance.
Total Expenses 207.500
Net Income 234.500
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The May transactions for Charlie Company (seller) assuming that Charlie uses a perpetual inventory system are:
Charlie Company Journal entries
May 13
Debit Account receivable $360
(8×$45)
Credit Sales $360
(To record credit sales)
May 13
Debit Cost of goods sold $208
(8×$26)
Credit Merchandise inventory $208
(To record cost of goods sold)
May 16
Debit Sales return and allowances $45
Credit Account receivable $45
(To record goods returned)
May 16
Debit Merchandise inventory $26
Credit Cost of goods sold $26
(To record cost of goods sold returned)
May 23
Debit Cash $302
($315-$13)
Debit Sales discount $13
(4%×$315)
Credit Account receivable $315
($360-$45)
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