At the time of collection, if the amount is paid within the discount period, the following entry is recorded:
Cash (+A).......................xxx
Sales discount(+XR,-R,-SE)........xxx
R. Jones (Accounts Receivables)(-A)….xxx
If the account is paid in full before the end of the discount period, the customer can be eligible for a cash discount rate. The duration of the trade credit is known as the credit period, and up until the end of the credit term, no interest is applied to the outstanding balance.
You use it to illustrate how a company's cash flow is distributed equally throughout the year rather than arriving in full at the end. We would use discount period numbers of 1 for the first year, 2 for the second year, 3 for the third year, and so on in a DCF without the mid-year convention.
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The effect on General Ledger with the creation of the new inventory item "Birdbath" on March 15, when beginning inventory of 25 units at a cost per unit of $23.82 recorded by Erin, is the overstatement of the Ending Inventory by $595.50.
Data and Calculations:
Date Description Units Unit Cost Total Cost
March 15 Beginning Inventory 25 bags $23.82 $595.50
April 20 Purchase 80 bags $8.00 $640.00
June 12 Purchase 75 bags $8.25 $618.75
June 15 Sale 125 bags
Ending inventory in units (correct balance) = 30 bags (155 - 125)
Ending inventory in units (per records) = 55 bags
Thus, the overstatement of the Ending Inventory by $595.50 makes the General Ledger balances to disagree.
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Answer:
The Carolina Christmas Tree Corporation’s total revenue is $32,500.
Explanation:
The total supply of Carolina Christmas Tree Corporation (Q) = 500
The selling price of a tree (P) = $65
The total revenue (TR)of Carolina Christmas Tree Corporation = Total supply (Q) * Selling price of a tree (P)
TR = 500 * $65 = $ 32500
Therefore, the answer to the given question is option C = $ 32,500
thanks, buddy... I appreciate it...:)