Why is that if like to help:)
Answer:
c.Insurance expense would be debited for $300.
Explanation:
Provided that
12 month insurance policy purchased on Dec 1 = $3,600
So, the adjusting entry on Dec 31 would be
Insurance expense A/c Dr $300
To Prepaid Insurance $300
(Being insurance expense is recorded)
The computation is
= $3,600 ÷ 12 months
= 300
As we have to compute for 1 month so we recorded $300 insurance expense
Answer:
The firm collects on its sales in an average of 10 days
Explanation:
if the receivables turnover is 36.5 it means it colect his accounts 36.5 times per year
we can convert this into a days metric:
<em>the days account is outstanding:</em>
365 days per year / we collect 36.5 per year = 10 days to collect an account on average
The acounts are collected every ten days on average.
<span>C.open up a savings account with a bank, because she can get interest and earn more money from people getting loans and using her money so she saves and earns money while doing nothing.
Hope This Helps!!</span>
Answer:
the journal entries used to record this transaction are:
Dr Accounts receivable 400
Cr Sales revenue 400
Dr Cost of goods sold 160
Cr Inventory 160
This transaction will increase net income, which increases retained earnings by $240. It will also increase assets by $240, since accounts receivable increases by $400, but inventory decreases by $160.
