At the time of collection, if the amount is paid within the discount period, the following entry is recorded:
Cash (+A).......................xxx
Sales discount(+XR,-R,-SE)........xxx
R. Jones (Accounts Receivables)(-A)….xxx
If the account is paid in full before the end of the discount period, the customer can be eligible for a cash discount rate. The duration of the trade credit is known as the credit period, and up until the end of the credit term, no interest is applied to the outstanding balance.
You use it to illustrate how a company's cash flow is distributed equally throughout the year rather than arriving in full at the end. We would use discount period numbers of 1 for the first year, 2 for the second year, 3 for the third year, and so on in a DCF without the mid-year convention.
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Answer:
Net income = $ 150500
Return on assets = 20.07 %
Explanation:
Net income = (annual sales)*7%
= $ 2150000*7%
= $ 150500
return on assets = [net income*100]/[assets to support expansion]
= (150500)(100)/(750000)
= 20.07 %
Therefore, the Net income for the year is $ 150500 and the Return on assets for the year is 20.07 %.
I like all of them but the T. rex is my all time fav
Collusion is legal in most countries as it form part of the oligopoly but in South Africa it is not legal for companies to collude on prices. As evidence, the Competition Commission has fined several SA companies for price collusion.
In reviewing the list of Trevor, I would categorize these events as: <u>two strengths and one threat</u>.
<u>Explanation</u>:
Strength enables boosting and encouraging the person, but threat harms the individual. On analyzing the list of Trevor, we came to know that he is undergoing two strength events and one threat event.
Trevor was ready to undertake his own business. The strength he received was immediate finance of $100,000. Another strength event is he luckily got three skilled installers who are ready to work for him.
The threatening event Trevor faced was there was a delay in the new construction. Many residential properties were foreclosed.