Answer:
arbitrage
Explanation:
Arbitrage can be defined as an act or process of buying buying and selling an asset simultaneously. Purchasing IBM stock and selling it for 5 dollar more simultaneously is an example of arbitrage. Such a seller is going to cash in on the price difference in buying and selling this stock. It is simply taking advantage of the difference in price that is gotten from buying and reselling this stock at 5dollars.
Answer:
The answer is given below;
Explanation:
$160,000*(3/4)*1%=$1,200
Bad Debt Expense Dr.$1,200
Allowance for Doubtful Accounts Dr.$1,200
$65,000*12%=$7,800
$12,000*24%=$2,880
$3,000*48%=$1,440
Total Allowance for Doubtful Accounts for December 31, $12,120
Total Allowance for Doubtful Accounts Opening ( $1,100)
Bad Debt Expense for the year $11,020
Bad Debt Expense Dr.$11,020
Allowance for Doubtful Accounts Cr.$11,020
Various Accounts to be shown pertaining to Account Receivable will be;
1.Allowance for Doubtful Accounts -Balance Sheet $12,120
<span>Below is the flexible budgets
for the company at sales volumes of 14,000 and 16,000 units and classify all
items listed in the fixed budget as variable or fixed.</span>
Answer:
a. When must Janine recognize the income from the $17,360 advance payment for services if she uses the cash method of accounting?
Cash method of accounting recognizes revenues and expenses when they are received or paid for.
b. When must Janine recognize the income from the $17,360 advance payment for services if she uses the accrual method of accounting?
c. Suppose that instead of services, Janine received the payment for a security system (inventory) that she will deliver and install in year 2. When would Janine recognize the income from the advance payment for inventory sale if she uses the accrual method of accounting and she uses the deferral method for reporting income from advance payments? For financial accounting purposes, she reports the income when the inventory is delivered.
She will recognize revenue only after the merchandise is delivered.
d. Suppose that instead of services, Janine received the payment for the delivery of inventory to be delivered next year. When would Janine recognize the income from the advance payment for sale of goods if she uses the accrual method of accounting and she uses the full-inclusion method for advance payments?
Under this system, advanced payments are considered revenue on the year that they were received.
Answer:
Explanation:
The journal entry is shown below:
Cash A/c Dr $6,240
Credit card expense A/c Dr $260 ($6,500 × 4%)
To Sales A/c $6,500
(Being the deposit is recorded)
For recording the deposit, we debited the cash account, credit card expense and credited the sales account so that the proper posting can be done.
