Answer:
d. $6,020
Explanation:
It is provided that payments to vendor that is accounts payable will be made 50% in the month of purchase and 50 % in upcoming month.
That is outstanding balance at any month end will be 50% of purchases of that month.
Here, opening balance of accounts payable = $6,500
This will be paid in January
Assuming this is 50% of purchases of December
Now purchase in January = $12,040
50% paid in January itself = $12,040 50% = $6,020
50% outstanding at month end = $12,040 50% = $6,020
Therefore correct option is
d. $6,020
Answer:
1) 9.5 times.
Explanation:
Accounts Receivable Turnover Ratio = Net Credit Sales / Average Accounts Receivable
Average accounts receivable = beginning accounts receivable + closing accounts receivable / 2
= $800,000 + $900,000/2
=$1,700,000 /2
=$850,000
Accounts Receivable Turnover Ratio = $8,040,000/$850,000
Accounts Receivable Turnover Ratio = 9.4588
=9. 5
Timothy stretched the rope between the hut and the beach for Philips to follow.
Answer:
b. Debit Unearned revenues for $400.
Explanation:
When money is received in advance for a service that is yet to be rendered, the money is accounted for as a liability called deferred or unearned income.
The entries are
Dr Cash
Cr Deferred revenue
when the service is rendered, revenue is said to be earned with the following entries passed
Dr Deferred revenue
Cr Revenue
Hence when $1,000 for services was received on December 1 and was recorded as a liability
Dr Cash $1,000
Cr Deferred revenue $1,000
when $400 had been earned
Dr Deferred revenue $400
Cr Revenue $400
Option b is right
b. Debit Unearned revenues for $400.
Answer
The answer and procedures of the exercise are attached in a microsoft excel document.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.