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vaieri [72.5K]
2 years ago
7

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

You might be interested in
orrugated Company currently produces cardboard boxes in an automated process. Expected production per month is 40,000 units. The
Alja [10]

Answer:

$36,000 and $30,000

Explanation:

Corrugated company deals in the production of cardboard boxes

The expected production for each month is 40,000 units

The direct material cost is $0.30 per unit

The manufacturing fixed overhead costs are $24,000 for each month

Therefore, the flexible budget for the production of 40,000 units and 20,000 units can be calculated as follows

Flexible budget for 40,000 units

= 0.30×40,000+24,000

= 12,000+24,000

= $36,000

Flexible budget for 20,000 units

= 0.30×20,000+24,000

= 6,000+24,000

= $30,000

Hence the flexible budget for 40,000 units and 20,000 units are $36,000 and $30,000 respectively

8 0
3 years ago
[30 PTS + BRAINLIEST]
saw5 [17]

Answer:

C

Explanation:

A farmer would want to look at the economic status of the US because his goal is to sell as much wheat as possible and make the most profit. If he pays no attention to the economy and there's a recession but he still sells his wheat at the normal price, people whose stocks are going down and who are losing money will be unable to, and unwilling to, pay the price. Thus, the farmer must inspect the changing economic statuses of the US to determine the best and most effective way to market out his wheat to the public.

Changes in US racial patterns have no impact on the marketing of the farmer's wheat, so A is incorrect.

The number of births per year is also irrelevant, as is the general population growth numbers because these do not affect the way the farmer will market his crops, so B and D are incorrect.

Hope this helps!

3 0
3 years ago
Read 2 more answers
Fleet, Inc. manufactured 700 units of Product A, a new product, in 20Xl. Product Xs variable and fixed manufacturing costs per u
Ulleksa [173]

Answer:

The change in the dollar amount of inventory is $200 due to change in the inventory costing method.

Explanation:

The variable cost per unit is $6.00 while the fixed cost per unit is $2.00

Variable cost per unit = $6.00

Absorption cost pet units = $8.00

Total cost under absorption costing = Absorption cost per unit / number of units in ending inventory

Total absorption cost = $8.00 × 100 = $800

Total cost under variable cost = Variable cost per unit × number of units in ending inventory

Total variable cost = $6.00 × 100 = $600

Change in cost = Total absorption cost - Total variable cost

Change in cost = $800 - $600 = $200

3 0
2 years ago
vSelected financial data for The Portland Porcelain Works Coffee Mug Division is as​ follows: Sales $ 2 comma 000 comma 000 Oper
ioda

Answer:

Capital turnover = 2.5 times

Explanation:

given data

Sales =  $2,000,000

Operating income = $400,000

Total assets = $800,000

Current liabilities = $120,000

Target rate of return = 13​%

Weighted average cost of capital = 6​%

to find out

Portland Porcelain Works Coffee Mug Division capital​ turnover

solution

we get here Portland Porcelain Works Coffee Mug Division capital turnover that is find here by dividing sales by total assets

so

Capital turnover = \frac{sales}{total\ assets}     ......................1

put here value

Capital turnover = \frac{2,000,000}{800,000}

Capital turnover = 2.5 times

5 0
2 years ago
You own one call option with an exercise price of $30 on Nadia stock. This stock is currently selling for $27.80 a share but is
Shalnov [3]

Answer: 0.755

Explanation:

From the information given, the current per share value of the option if it expires in one year will be calculated as follows:

Firstly, we calculate the present value which will be:

= $28 / ( 1 + 0.05 )

= $28/1.05

= $26.667

The number of options needed will be:

= ( 34 - 28 )/ ( 4-0)

= 6/4

= 1.5

Therefore,

27.80 = (1.5 x Co) + [28 / (1+0.05)]

27.80 = 1.5Co + (28/1.05)

27.80 = 1.5Co + 26.667

1.5Co = 28.0 - 26.667

1.5Co = 1.1333

Co = 0.755

Therefore, the answer is 0.755

5 0
2 years ago
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