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egoroff_w [7]
3 years ago
5

A company purchased $2,300 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $450 worth of merchandise. On

July 12, it paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the payment on July 12 is:
Business
1 answer:
Aleksandr [31]3 years ago
7 0

Answer:

Dr Accounts payable 1850

Cr Merchandise inventory $37

Cr Cash $1813

Explanation:

Preparation of the journal entry to record the payment on July 12 Using the gross method,

JOURNAL ENTRY

Jul-12

Dr Accounts payable ($2300-450) 1850

Cr Merchandise inventory ($1850*2%) $37

Cr Cash $1813

($1850-$37)

(Being entry recorded for payment to supplier)

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Lorico [155]

A) Direct labor hrs for car wheels = estimated wheels *direct labor per wheel  

40,000 *1hr = 40,000      

   

Direct labor hrs for Truck      

10,000 * 3hr= 30,000      

   

total direct labor hrs 40,000+30,000 = 70,000  hrs

Overhead rate is total est oh cost/ total direct labor hrs    

770,000/70,000= 11.00    

B) Car truck wheels 40,000*11 =440,000

Truck wheels 10,000*11=110,000

6 0
3 years ago
The financing section of a cash budget is needed if there is a cash deficiency or if the ending cash balance is less than Entry
WITCHER [35]

Answer:

A. Management's minimum required balance.

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4 0
3 years ago
The organizations likely to benefit the most from the global reach of e-commerce are those that.
ElenaW [278]

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3 0
1 year ago
AB Builders, Inc., has 16-year bonds outstanding with a par value of $2,000 and a quoted price of 99.727. The bonds pay interest
galben [10]

Answer:

6.54%

Explanation:

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YTM = 6.56%

We can find the coupon rate by a simple formula

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We need to find interest first in order to find coupon rate

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6 0
3 years ago
If an issuer files a registration statement with the sec under the securities act of 1933, registration is effective:
Andrej [43]

Answer:

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Explanation:

3 0
3 years ago
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