1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
inessss [21]
3 years ago
13

Morales Company sells $320,000 of its receivables to Instant Factors, Inc. Instant Factors assesses a finance charge of 3% of th

e amount of receivables sold. Prepare the journal entry to record the sale of the receivables on Morales Company's books. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Business
1 answer:
bazaltina [42]3 years ago
7 0

Answer:

Dr Cash $310,400

Dr Factoring expense$9,600

Cr Account receivable $320,000

Explanation:

Preparation of the journal entry to record the sale of the receivables on Morales Company's books.

Dr Cash $310,400

($320,000-$9,600)

Dr Factoring expense$9,600

($320,000*3%)

Cr Account receivable $320,000

(Being to record the sale of the receivables on Morales Company's books

You might be interested in
A cosmetics company is planning the introduction and promotion of a new lipstick line. The marketing research department has fou
Mademuasel [1]

Answer:

p = 59.11 dollars

Explanation:

Given

Price:     p(x) = 8eˣ      (0 ≤ x ≤ 2)

Revenue;  R = x*p = 8xeˣ

p = ?  when R be at maximum

We can apply

dR/dx = d(x*p)/dx = 0

⇒  d(8xeˣ)/dx = 8*(1*eˣ + x*eˣ) = 0

⇒  eˣ*(1 + x) = 0    ⇒    x = - 1

as x = - 1 ∉ [0, 2]

then, we have

p(0) = 8e⁰ = 8

R = 0*8 = 0

If x = 1

p(1) = 8e¹ ≈ 21.74

R = 1*21.74 = 21.74

If x = 2

p(2) = 8e² ≈ 59.11

R = 2*59.11 = 118.22

Implies that, R(x) is maximum at x = 2.

   

Thus, the price that maximize the revenue of the company is 59.11 dollars.

7 0
3 years ago
On September 1, 2018, Able Company purchased a building from Regal Corporation by paying $580,000 cash and issuing a one-year no
Nataly_w [17]

Answer:

1. Able must pay Regal Corporation $599,400 on September 1, 2019, when the note matures.

2. The amount of Interest Able will recognize on this Notes Payable is 39,600

3. The total cash (including interest) paid for the building purchased by Able is $1,179,400

4. Payroll related expense does not come into picture in this question. So it is not answered.

Explanation:

1. According to the given data we have the following:

Rate of Interest = 11%

Therefore:      

Year                      Amount Interest      

September 1, 2018       $540,000      

December 31, 2018            $19,800      

September 1, 2019                     $39,600      

Total                      $540,000     $59,400

Therefore, Total Payable=Notes payable+Interest 540000      Total Payable= $540,000+$59,400

Total Payable=$599,400

Able must pay Regal Corporation $599,400 on September 1, 2019, when the note matures.

2. The amount of Interest Able will recognize on this Notes Payable is 39,600

3. To calculate The total cash paid for building purchased by Able including interest we have to make the following calculation:

Total cash paid for purchase of building=Cash paid at the time of purchase of building+Notes payable+Interest

Total cash paid for purchase of building=$580,000+$540,000+$59,400

Total cash paid for purchase of building=$1,179,400

The total cash (including interest) paid for the building purchased by Able is $1,179,400

4. Payroll related expense does not come into picture in this question. So it is not answered.

6 0
2 years ago
what is the accounting measurement of an insurance company's future obligations to its policy owners?
zvonat [6]

Answer:

provisions / accruals

Explanation:

see above in the answer, both mean basically the same but in insurance terms accrual is more correct

8 0
3 years ago
If $15,000 is considered to be material to the income statement, but $25,000 is material to the balance sheet, the auditor shoul
Elanso [62]

Answer:

The correct option is d.

Explanation:

It is given that $15,000 is considered to be material to the income statement, but $25,000 is material to the balance sheet.

Material to the income statement = $15,000

Material to the balance sheet = $25000

The auditor should set overall materiality according to the income statement.

The auditor should set overall materiality at $15,000.

Therefore the correct option is d.

7 0
3 years ago
Fern Co. has net income, before taxes, of $200,000, including $20,000 interest revenue from municipal bonds and $10,000 paid for
exis [7]

Answer:

Effective tax rate =28.50 %

Explanation:

given data

Net Income before taxes = $2,00,000  

Interest revenue = $20,000  

Life insurance Premium = $10,000

tax rate = 30%

to find out

Fern's effective tax rate

solution

first we get here Taxable Income that is express as

Taxable Income = Net Income before taxes + Life insurance Premium - Interest revenue   ........................1

put here value we get

Taxable Income = $2,00,000 + $10,000 - $20,000

Taxable Income = $190000

so

Income tax Liability will be

Income tax Liability = Taxable Income × Tax rate  .....................2

Income tax Liability = $190000  × 30%

so Effective tax rate will be

Effective tax rate = \frac{Income\ tax\ Liability}{Net\ Income}

Effective tax rate = \frac{57000}{200000}

Effective tax rate =28.50 %

3 0
2 years ago
Other questions:
  • In the long run, if the firm decides to keep output at its initial level, what will it likely do? stay on but decrease to the po
    11·1 answer
  • A disadvantage of the mall-intercept survey is:
    11·1 answer
  • Stone Foods produces the majority of its cheese products in its U.S. based dairy division at a total outlay cost of $6.00 per un
    10·1 answer
  • Fullerton Waste Management purchased land and a warehouse for $720,000. In addition to the purchase price, Fullerton made the fo
    12·1 answer
  • Your friend just opened their first credit card.What advice would you give them before they start making purchases?
    7·2 answers
  • Consider the optimal consumption bundle for a consumer who is choosing between two goods, x and z, which she considers perfectly
    7·1 answer
  • You are shopping for a new printer to take back to college with you. You decide on the PIXMA iP100 due to its superior photo pri
    5·1 answer
  • The division of activities into unit-level, batch-level, product-sustaining level, and facility-level categories is commonly kno
    11·1 answer
  • In 2020, Miranda records net earnings from self-employment of $158,500. She has no other gross income. Determine the amount of M
    13·1 answer
  • what corporate diversification strategy is being pursued by disney? what evidence do you have that supports your position? how d
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!