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alexandr402 [8]
3 years ago
7

XYZ Co. purchased merchandise on June 10 at a $5,000 invoice price with terms of 2/10, n/30 and paid for the merchandise on June

25. Illustrate the required entries to record and pay for this purchase under both the gross method and the net method by matching the action on the left with the method on the right. (Assume a perpetual inventory system is used.)
Business
1 answer:
mel-nik [20]3 years ago
7 0

Answer:

Credit Cash for $5,000 on June 25.: Both methods

Credit Cash for $4,900 on June 25.: Neither method

Debit Discounts lost for $100 on June 25.: Net method

Debit Merchandise inventory for $5,000 for June 10.:Gross method

Explanation:

Based on the information given the required entries to record and pay for this purchase under both the GROSS METHOD and the NET METHOD by matching the action on the left with the method on the right will be :

Credit Cash for $5,000 on June 25.: BOTH METHODS

Credit Cash for $4,900 on June 25.: NEITHER METHOD

(100%-2%*$5,000)

Debit Discounts lost for $100 on June 25.: NET METHOD

(2%*$5,000)

Debit Merchandise inventory for $5,000 for June 10.:GROSS METHOD

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1 year ago
Lisa has $1,000 in cash today. Which one of the following investment options is most apt to double her money? A. 6 percent inter
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Answer:

D. 8 percent interest for 9 years

Explanation:

We would use the formula future value formula below to determine which of the investment options would double her money:

FV=PV*(1+r)^n

PV is the amount invested which is $1000

r is the interest rate expected to be earned while n is the number of years First option:

FV=$1000*(1+6%)^3

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Second option:

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Third option:

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Fourth option:

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