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balandron [24]
3 years ago
14

Jax Recording Studio purchased $7,800 in electronic components from Music World. Jax signed a 60-day, 8% promissory note for $7,

800. Music World's journal entry to record the sales transaction is:
Business
1 answer:
AveGali [126]3 years ago
3 0

Answer:  Debit Notes Receivable          7,800  

Sales(to record sales)   7,800

Explanation:

When a customer signs a promissory note in exchange for commodity then the entry to record sales is recorded by debiting notes receivable.

here,  sales = $7,800 = Debit Notes Receivable  

The entry to record the sales transaction would be

Debit Notes Receivable          7,800  

Sales(to record sales)   7,800

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3 years ago
Read 2 more answers
Refinancing a loan. About Suppose someone takes out a home improvement loan for $30,000. The annual interest on the loan is 6% a
lutik1710 [3]

Answer:

(a) A_n = A_{n-1}(1.005) - 600 where A_0 = 30000

(b) Above $150

Explanation:

Given

Loan = \$30000

Rate =6\% --- annually

Solving (a): Recursion for the amount at the end of n month

The base case is:

A(0) = 30000

Next, we calculate the monthly rate (r)

r = \frac{Annual\ Rate}{12}

r = \frac{6\%}{12}

r = 0.5\%

r = 0.005

The loan amount remaining at the end of month n is then calculated as:

A_n = A_{n-1}*(1 + r) - 600 ---[The 600 represents the monthly payment]

A_n = A_{n-1}*(1 + 0.005) - 600

A_n = A_{n-1}(1.005) - 600

Solving (b):

Suppose the borrower requests for a lower monthly payment, then the following condition will exist:

P > A_{n-1} *0.005

i.e. the monthly payment will exceed the monthly interest

Let n= 1

P > A_{1-1} *0.005

P > A_0 *0.005

Substitute 30000 for A_0

P > 30000  *0.005

P > 150

His monthly payment must exceed $150

3 0
3 years ago
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