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3 years ago

A merchandiser returned inventory worth $1,400 that was purchased on account. Under the periodic inventory system, the joumal

Business

1 answer:

cestrela7 [59]3 years ago

4 0

Answer:

a debit to Accounts Payable for $1,400 and a $1,400 credit to Purchase Returns allowances

Explanation:

Periodic inventory system is one that updates information on inventory on a periodic basis. This is opposite of perpetual inventory system that requires update of inventory system at all times.

In the scenario the merchandiser bought the goods on account. That means he did not pay cash but rather bought on credit.

On purchasing the items accounts payable will be credited thereby increasing the account balance.

Since the items are being returned a debit will be applied to accounts payable resulting in a decrease in the account balance.

A credit will now be posted to purchase returns allowances to show that products have been returned by a buyer

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Monthly payment is $151,567.83

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Monthly Payment can be calculated using following formula

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3 years ago

A manager wants to motivate the maintenance staff to be more productive. She starts by providing training and assures employees

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Expectancy theory.

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3 years ago

You plan to purchase a $350,000 house using either a 30-year mortgage obtained from your local savings bank with a rate of 8.20

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Answer:

* The option of mortgage obtained at the rate of 8.20%:

+ Principal paid: $280,000

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* The option of mortgage obtained at the rate of 7.20%:

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+ Interest paid: $178,658

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The difference on monthly payment between the two option is: $454.39

Explanation:

For both options, we will have to borrow 80% of the house's price because the down payment is 20% or we have to borrow 350,000 x 80% = $280,000 => The principal needs to be paid for two options is the same, $280,000.

* For option of mortgage obtained at the rate of 8.20%:

We apply the present value of annuity formula to find the interest rate paid and monthly payment with discount rate of 8.2%/12 and discounting period of 12*30 = 360

we have: 280,000 = PMT/(8.2%/12) * [ 1 - (1+8.2%/12)^-360] <=> PMT = $2.093.71

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* For option of mortgage obtained at the rate of 7.20%:

We apply the present value of annuity formula to find the interest rate paid and monthly payment with discount rate of 7.2%/12 = 0.6% and discounting period of 12*15 = 180

we have: 280,000 = PMT/(0.6%) * [ 1 - (1+0.6%)^-180] <=> PMT = $2,548.1

=> There is a total of 2,548.1 x 180 = $458,658 repayment has been made, with $280,000 is for principal repayment => Interest expenses paid = 458,658 - 280,000 = $178,658.

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Read 2 more answers

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Answer:

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