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Aneli [31]
2 years ago
12

A firm is offered credit terms of 2/10 net 45 by most of its suppliers. The firm also has a credit line available at a local ban

k at an interest rate of 12 percent. What is the cost of giving up the cash discount
Business
1 answer:
gavmur [86]2 years ago
3 0

Answer:

21.28%

Explanation:

Note: <em>Assuming 365 day year</em>

Cost of giving up cash discount = [Discount rate / (1-Discount rate)] * 365 / [Credit period - Discount period]

Cost of giving up cash discount = [0.02/(1-0.02)] * [365/(45-10)]

Cost of giving up cash discount = [0.02/0.98] * [365/35]

Cost of giving up cash discount = 0.0204082 * 10.42857

Cost of giving up cash discount = 0.212828

Cost of giving up cash discount = 21.28%

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Mike started a calendar year business on September 1st of this year by paying 12 months rent on his shop at $1,000 per month. Wh
solong [7]

Answer:

C. $12,000 under the cash method and $4,000 under the accrual method

Explanation:

Under the cash basis of accounting, whenever an amount is received or paid, it is recognized in the books of accounts

Whereas, on the accrual basis of accounting, the cash received / payment or not it is recognized in the books of accounts. It is recorded when it is earned not when it is received or paid.  

So, by this above information

The cash method would recognize $12,000 ($1,000 × 12 months)

Whereas

The accrual method would recognize $4,000 ($1,000 × 4 months)

We assume the books are closed on December, 31

8 0
3 years ago
Wilturner Company incurs $76,000 of labor related directly to the product in the Assembly Department, $25,000 of labor not direc
coldgirl [10]

Answer:

correct option is b) $76,000 and $37,000

Explanation:

given data

Labor related directly to the product = $76,000

labor not directly related to the product = $25,000

labor for services = $12,000

solution

As here Direct Labor is express as

Direct Labor  = Labor related directly to the product   ...............1

so

Direct Labor = $76,000

and

Factory Overhead will be as

Factory Overhead = Labor not directly related to the product + labor for services  ,................................2

put here value and we get

Factory Overhead  $25000 + $12000

Factory Overhead = $37,000

so here correct option is b) $76,000 and $37,000

6 0
3 years ago
Privacy protection in the united states is ________ in europe.
Rus_ich [418]
<span>Privacy protection in the United states is much less stringent than in Europe.

Stringent is another word for strict. European privacy protection laws are much more strict than those in the United States. Privacy protection refers to the means of protecting your privacy and companies are not allowed to give out personal </span>information without confirmation they are allowed to do so. 
7 0
3 years ago
Heya, guys! I got banned yesterday, but now I'm back! It's good to be back, hahahaha!
erastovalidia [21]
The answer is 72 lol
6 0
3 years ago
Read 2 more answers
Sky Communications (SKY) usually sells a cell phone for $448 plus 12 months of cellular service for $672. SKY has a special, tim
jeka94

Explanation:

The Journal Entry from July 1 and July 31 is shown below:-

1. Cash Dr,                                             $560

            To Deferred revenue                                  $560

(Being cash is received)

2. Deferred revenue                             $336

            To Sales revenue                                         $336

(Being 12 months sales service is recorded)

3. Cost of goods sold                            $280

            To Inventory                                                 $280

(Being cost of goods sold is recorded)

4. Deferred revenue ($336 ÷ 12)            $28

            To Service revenue                                      $28

(Being Deferred service revenue is recorded)

Working Note:-

Cellular service revenue = offer price ÷ total cost of phone and service × cellular service

= (($560 ÷ ($448 + $672)) × $672

= $336

3 0
2 years ago
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