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marysya [2.9K]
3 years ago
5

Cushion Sports accepted a credit card account receivable in exchange for $5,000 of services provided to a customer. The credit c

ard company charges a 5% service charge. Recording the transaction in the company's accounting records will have what effect on the accounting equation?
a. Increase assets and equity by $4,750.
b. Increase equity by $5,000.
c. Increase assets by $5,000.
d. Decrease assets and equity by $250.
Business
1 answer:
Andrew [12]3 years ago
4 0

Answer:

increase assets and equity by $4,750

Explanation:

Based on the information given we were told that they accepted an account of a credit card account receivable for the exchange of the amount of $5,000 of the services that was provided to a customer in which the credit card company charges 5% service charge, Based on this if we are to Record the transaction in the company's accounting records the effect on the accounting equation will be:

Increase assets and equity by $4,750

Calculated as :

$5,000-($5,000*5% Service charge)

$5,000-$250

=$4,750

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Answer:

b. $2,720,000

Explanation:

The contribution margin is what is left after subtracting the variable cost from the sales.

From there, the company pays their fixed cost and the rest is net income.

In this case you have a company desiring to get 720,000 net income after paying their 2,000,000 fixed cost

So we come up with with formula:

Contribution Margin - Fixed Cost = Net Income

Replacing the know values, we get the unknow value. Like it was a solve for X question:

X - 2,000,000 = 720,000\\X = 2,000,000 + 720,000\\X = 2,720,000

8 0
3 years ago
Suppose you are a supply chain manager for De Beers Diamond co., and your job is to order components for a manufacturing facilit
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Answer:

100 units

Explanation:

Given that,

Annual demand (D) = 500 units

Ordering cost (S) = $5 per order

Holding cost (H) = $0.50 per unit per year

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=\sqrt{\frac{2\times D\times S}{H}}

=\sqrt{\frac{2\times 500\times 5}{0.50}}

=\sqrt{\frac{5,000}{0.50}}

=\sqrt{10,000}

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So, the optimal number of diamonds to be ordered is 100 units.

4 0
3 years ago
The following account balances were taken from the adjusted trial balance of Kendall Company: Revenues $ 22,400 Operating Expens
dsp73

Answer:

Retained earnings-Closing = $19,900

Explanation:

Given that,

Revenues = $22,400

Operating Expenses = $15,000

Dividends = $4,500

Retained Earnings(opening) = $17,000

Net Income = Revenues - Operating expenses

                    = $ 22,400 - $15,000

                    = $7,400

Statement of Retained Earnings:

Retained earnings-Closing:

= Retained earnings -opening + Net Income - Dividends

=  $17,000 + $7,400 - $4,500

= $19,900

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Explanation:

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Answer:

Demographic Environment

Explanation:

When looking at the macroenvironmet and the likely changes happening in there, one seems to look at the broader condition of the economy which can be impacted by the monetary and fiscal policies, as well as employment and inflation rates.

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