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e-lub [12.9K]
3 years ago
11

A company purchases inventory on account for $45,000 with terms 2/10, n/30. Under the net method of accounting for purchases, th

e purchase would be recorded at:_______
a. $36,000.
b. $40,500.
c. $45,000.
d. $44,100.
Business
1 answer:
taurus [48]3 years ago
8 0

Answer:d. $44,100.

Explanation:

The net method is a way a company or firm records its customer's invoice. Under the net method of Accounting for purchases,  The record of purchases are recorded considering  the cash discount.

Therefore

Purchase price = $45000

Cash Discount  at terms  2/10 n/30

$45000  x  2% =  $45,000 x 0.02 =$900

Net purchase price = $45000 - $900 = $44,100.

The journal to record the inventory purchased on account using the  net method  will be

Accounts  Titles                             Debit             Credit

Inventory                                 $44,100.  

Accounts payable                                              $44,100.

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John buys a watch for $100 at a vintage store. Later, the store learns that the watch was worn by Sean Connery in a James Bond m
ivann1987 [24]

Answer

The store cannot rescind their decision because the ownership of the goods has passed from the seller to the buyer in this case john

Explanation :This can be defined as a situation whereby the seller agree to sell the goods to the buyer in exchange for value known as money.in contract for the sale of goods, there is sale and agreement to sale. Sale is when the seller has agreed to sell the goods to the buyer in exchange for value known as money and the buyer has actually made payment for the goods.in this case, the ownership of the goods has passed from the seller to the buyer.

On the other hand,agreement to sale is when the seller has agreed to sell the goods to the buyer in exchange for money but the buyer has not made the payment. In this case,the ownership of the goods is still with the seller . Therefore, in the case of John who is a subject of our discussion, John has bought the watch from the store and made payment for it.John has the right to enjoy the watch under the law. If the seller now wants to deny John the right to have value for his money.John had the right to seek redress in the court of law in defence of his right to have value for money by enjoying the watch which he had bought from the store with his hard earned money.

3 0
3 years ago
Drag the tiles to the correct boxes to complete the pairs. Match the types of agreements to their descriptions.
bagirrra123 [75]

Answer:

A will has legal impact after you have passes away and has to be filed with the court.

A living will is similar to a regular will be takes effect while you are still alive to figure out where your assets should be placed.

A trust is an agreement that allows a third party to hold the assets on behalf of a beneficiary.

A prenuptial agreement is an agreement made before a marriage that explains what should happen to their assets in the event their marriage does not last. This is common in famous people due to the amount of money they have.

Explanation:

5 0
3 years ago
You are evaluating an investment that will provide the following cash flows at the end of each of the following years: year 1, $
stealth61 [152]

Answer:

$37,680.95

Explanation:

The maximum i would be willing to pay is the present value of the cash flows

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1 = $12,500

Cash flow in year 2 = $10,000

Cash flow in year 3 = $7,500

Cash flow in year 4 = $5,000

Cash flow in year 5 = $2,500

Cash flow in year 6 = 0

Cash flow in year 7   $12,500

I = 9%

PV = $37,680.95

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

3 0
3 years ago
If you buy a share of stock for $15 and sell it two years later for $18.50, what is the annual percent return (on a compounded b
nadya68 [22]

Answer:

11%

Explanation:

Compounding is the method used to determine the future worth of an amount today while discounting is the method used to determine the present value of a future amount.

Both are related by

Fv = Pv(1 + r)^n

where Fv is the future amount

Pv is the present value

r = rate

n = time

As such,

18.5 = 15 (1 + r)^2

1.2333 =  (1 + r)^2

1 + r = 1.11

r = 0.11

the annual percent on returns is 11%

7 0
3 years ago
Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows.(a) Indicate the missing amoun
Sliva [168]

Answer:

Incomplete manufacturing costs:

                                                              Case 1               Case 2

Direct materials used                          $9,700              $3,900

Direct labor                                             5,100                 8,100

Manufacturing overhead                       8,400                 4,100

Total manufacturing costs                  23,200               16,100

Beginning work in process inventory    1,100                 9,100

Ending work in process inventory        7,200                 3,100

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Sales discounts                                     2,600                 1,500

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Goods available for sale                     22,100              25,500

Cost of goods sold                             18,600              22,900      

Ending finished goods inventory        3,500                 2,600

Gross profit                                          3,800                  7,100

Operating expenses                           2,800                  2,000

Net income                                          1,000                   5,100

Explanation:

To work out the missing figures involves some manoeuvres of the figures, working up or down as the case may be.  For example, to calculate the cost of goods sold in Case 1, I deducted the ending inventory of finished goods from the Goods available for sale.  With this figure, it becomes possible to work out the Gross profit and the Net income.

3 0
3 years ago
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