Answer:
Dr. Cr.
July 19
Cash $792
Discount expense $8
Account Receivable $800
Explanation:
The term 1/15, n/30 mean there is a discount of 1% is available on the sales value, if payment is made within 15 days of sale with credit term of 30 days.
The sale of $900 was made on July 10 and discount period is until July 25.
On July 12 goods amounting $100 was returned and now the amount due from the customer is $800 ( $900 - $100 ).
The payment made on July 19 is actually in the discount period and it is eligible for the discount as it is made before July 25.
Discount = Amount due x Discount rate
Discount = $800 x 1% = $8
$792 Cash received against the sale made on July 10 and discount $8 is expensed. Total of $800 is credited from the account receivable account to eliminate it.
Answer:
A. USD 5,180/-
Explanation:
In the actual method of inventory valuation, the inventory reaming and the COGS (Cost Of Goods Sold) is measured after each purchase or sale of a transaction. So the COGS and the remaining value of the inventory is known all the time.
Formula:
- Gross margin is equal to Sales minus COGS
Without new products, Erik can market his current products only to his current market the same products to similar customers
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Explanation:</u></h3>
New product development involves a lot of research work. This plays a vital role in making the newly developed product to be more successful. The research team must first identify the areas that can be improved with the requirements and feedback from their loyal customers.
But in the given example, Erick’s company is already successful with the developed product for more than five years. Hence, it is recommended for marketing the current products to the current customers and market the same products to similar customers.
Answer:
The fed needs to purchase bonds worth $20 from the banks to increase money supply by $200.
Explanation:
The Federal Reserve wants to increase the money supply by $200.
The reserve requirement is 10%.
The fed can increase the money supply by purchasing bonds from commercial banks.
The money supply will increase by money multiplier times worth of bonds.
Increase in money supply = 
$200 = 
Worth of bonds = 
Worth of bonds = $20
So the fed needs to purchase bonds worth $20 from the banks to increase money supply by $200.
