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2 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]2 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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In carrying out market research for a locality, you collect data on income levels, life style characteristics,

Mariana [72]

The correct answer is letter D.

The description above is an example of a collection of demographic information. This refers to characteristics of a certain population in particular geographic location. Race, gender, age, profession, among others, are typical examples of demographics that are commonly used in surveys.

5 0

3 years ago

On January 1, 2024, Tyson Manufacturing Company purchased a machine for $41,100,000. Tyson's management expects to use the mac

denis23 [38]

Answer:

Annual depreciation= $5,865,714.29

Explanation:

Giving the following information:

Purchase price= $41,100,000

Salvage value= $40,000

Useful life in hours= 28,000

To calculate the depreciation expense for 2024, we need to use the following formula:

Annual depreciation= [(original cost - salvage value)/useful life of production in hours]*hours operated

Annual depreciation= [(41,100,000 - 40,000) / 28,000]*4,000

Annual depreciation= $5,865,714.29

7 0

3 years ago

On october 22, 2016, leahy corp. sold land to heller co., its non-wholly owned subsidiary. the land cost $122,000 and was sold t

Sveta_85 [38]

In this situation the answer is B. When Heller Co. sells the land to a third party. Capital gain is any money made (gained) off of a sale from an investment. Once Heller Co. sells the land the gain of the sale will be realized.

6 0

3 years ago

Alpaca Corporation had revenues of $300000 in its first year of operations. The company has not collected on $19900 of its sales

lyudmila [28]

Answer:

$238,148

Explanation:

Total expenses:

= Inventory purchased + Salaries expense + Interest expenses + Insurance expense

= $85,000 + $15,000 + $3,300 + $3,900

= $107,200

Net income:

= Total revenue - Total expenses

= $300,000 - $107,200

= $192,800

Net income after tax:

= Net income - Taxes

= $192,800 - ($192,800 × 9%)

= $192,800 - $17,352

= $175,448

Cash balance:

= Net income after tax - Amount not collected on accounts receivable + Amount not paid on purchases - Prepaid insurance + Money invested by owners + Money borrowed

= $175,448 - $19,900 + $26,500 - $3,900 + $30,000 + $30,000

= $238,148

6 0

3 years ago

Joe, Patrick, and Adam are friends. They have the same preference over consumption and leisure. Joe has two jobs. He auditions f

Roman55 [17]

Answer:

2. For Joe income effect dominates while for Adam substitution effect dominates

Explanation:

Income effect refers to change in the real i.e inflation adjusted income when prices change.

In the given case, Joe works at two jobs which means that for a greater income he is willing to work for more hours. Thus, in his case it can be said that income effect is prominent.

In the case of Adam, he works overtime regularly which means for every extra hour of work, he earns an extra income. This represents change in the relative income owing to change in working habits. This is a case of substitution effect.

6 0

3 years ago