Answer:
The journal entry to record the merchandise return and the payment should be:
Dr Cash 2,940
Dr Sales discount 60
Dr Sales returns and allowances 600
Cr Accounts receivable 3,000
The second entry must be made to record the increase in inventory:
Dr Merchandise inventory 600
Cr Sales returns and allowances 600
Explanation:
The sales returns and allowances account is used to record returned merchandise, while the sales discount account is used to record discounts for early payments or other types of sales discounts.
I’m not going to be able to get my homework homework but I’m not gonna be going back to school
Answer:
It is 16.9
Explanation:
Operating cycle = Inventory turnover + Receivable turn over - payable turnover
Hence, Operating cycle = 7.3+9.6
=16.9
Operating cycle implies how long it takes us to convert entire production process to cash .
It has an direct relationship with the level of working capital required. The higher the operating cycle, the higher the working capital investment required to keep the operation running.
A cash driven businesses like restaurant which hardly sell on credit will certainly have shorter operating cycle compared to a manufacturing company.
Answer:
Paid in capital excess of par is $$309,000
Explanation:
<u>Journal Entries</u>
Debt: Legal services (4,100 hours × $100 per hour) = $410,000
Credit: Common stock (101,000 shares × $1 par) = $101,000
Credit: Paid-in capital - excess of par (Remainder) = $309,000
To record the 101,000 shares compensated by 4,100 legal hours with $1 par value)
In the above transaction common stock issued in excess of par for legal services as compensation instead cash. Hence "legal services" have been debited as issuing company benefited for legal services. "Common stock" and "paid in capital in excess of par" has been credited as this issuing company issuing common stock.
Paid in capital excess of par is $$309,000
Answer:
<em>If two similar properties are for sale, a buyer will purchase the cheaper of the two</em>
Explanation:
This principle states <em>a property's maximum value is usually determined by the cost of purchasing an equivalent substitute property having the same usage, design, and income.</em>
For instance, why would someone pay $1,000,000 for an apartment when they could buy a different but equally desirable house for just $750,000 in the same area?
