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Nikitich [7]
3 years ago
7

Martinez Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2020. The goods have a sales price of $

639,100 (cost of $480,000). The terms are net 30. If Danone pays within 5 days, however, it receives a cash discount of $9,100. Past history indicates that the cash discount will be taken. On January 28, 2020, Danone makes payment to Martinez for the full sales price. (a) Prepare the journal entry(ies) to record the sale and related cost of goods sold for Martinez Company on January 2, 2020, and the payment on January 28, 2020. Assume that Martinez Company records the January 2, 2020, transaction using the net method.
Business
1 answer:
Artemon [7]3 years ago
7 0

Answer:

Martinez Company

a) Journal Entries

Jan. 2, 2020:

Debit Accounts Receivable (Danone Inc.) $630,000

Credit Cash Discounts $9,100

Credit Sales Revenue $639,100

To record the sale of goods on account,  with trade terms, 5 days $9,100, net 30.

Debit Cost of goods sold $480,000

Credit Inventory $480,000

To record the cost of goods sold.

Jan. 28, 2020:

Debit Cash $639,100

Credit Accounts Receivable (Danone Inc.) $630,000

Credit Cash Discounts $9,100

To record the full receipt of cash on account and the revision of the cash discounts not taken.

Explanation:

a) Data and Analysis:

Jan. 2, 2020:

Accounts Receivable $630,000 Cash Discounts $9,100 Sales Revenue $639,100, terms, 5 days $9,100, net 30.

Cost of goods sold $480,000 Inventory $480,000

Jan. 28, 2020:

Cash $639,100 Accounts Receivable $630,000 Cash Discounts $9,100

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Mamont248 [21]

Answer:

D. trade-offs associated with financial decisions.

Explanation:

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.

Let's assume Martin can produce either 5 jeans or 10 shirts in one hour. If Martin decides to produce jeans instead, his opportunity cost are the shirts he trades off when he decided to produce jeans.

I hope my answer helps you

4 0
3 years ago
Suppose the working age population of a fictional economy, Jessica Town, falls into the following categories: 100 are retired ho
Studentka2010 [4]

Answer: 30.1%

Explanation:

The unemployment rate includes those who do not have employment but are actively looking for employment not those who do not have a job and are not looking.

The rate is also based on the Labor force which is the portion of the population that is <u>able</u> and <u>willing</u> to work. Retirees are not included in this measure. Those who are not looking are not willing.

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Unemployment rate:

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4 0
3 years ago
Matson Lines which operates the shipping between the US and Hawaii under the Jones Act has ordered three small oil tankers from
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3 0
3 years ago
1. Depreciation expense was $17,500. 2. Dividends declared and paid were $20,000. 3. During the year equipment was sold for $8,5
earnstyle [38]

Answer:

the question is incomplete since the net income is missing, so I looked for a similar question and found the attached images.

Statement of Cash flows

For the Year ended December 31, 2017

Cash flow from operating activities

Net income                                                                $32,000

Adjustments to net income:

  • Depreciation expense $17,500
  • Increase in accounts payable $4,000
  • Increase in accounts receivable ($6,000)
  • Increase in inventory ($8,000)
  • Decrease in taxes payable ($1,000)                 <u>$6,500</u>

Cash flow from operating activities                         $38,500

Cash flow from investing activities

Sale of equipment                                                      $8,500

Cash flow from financing activities

Issuance of common stocks                                     $4,000

Dividends paid                                                       ($20,000)

Decrease in bonds payable                                  <u> ($16,000)</u>

Cash flow from financing activities                       ($32,000)

Net increase in cash position                                 $15,000

Beginning cash balance                                        <u> $20,000</u>

Ending cash balance                                              $35,000

3 0
3 years ago
Leto Company manufactures a certain type of alloy. The alloy undergoes a hardening process. The hardening unit is operating at f
almond37 [142]

Answer:

Leto Company

The unit contribution margin per production constraint hour is:

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Explanation:

a) Data and Calculations:

Unit selling price =              $96.80

Unit variable cost =              (23.50)

Unit contribution margin = $73.30

Hardening treatment hours per unit = 5 hours

Units of alloy produced = 2,300

Total hours spent on hardening treatment = 11,500 (5 * 2,300)

Contribution margin per production constraint hour = Unit contribution margin/Total hours spent on hardening treatment

= $0.00637 ($73.30/11,500)

b) The unit contribution margin per production constraint hour shows the contribution margin that is made per unit of the production constraint.  The production constraint is the limited input resources that are available for production.  It is a product of the units of the alloy that Leto produces and the number of hours required to produce one unit.

3 0
3 years ago
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