Answer: A. incorrect because part of each payment is to principal and to interest. Therefore, only a portion of the payment goes to interest, so the full amount should not be included when computing the rate of interest paid.
Explanation:
When paying back a loan, there are two components to the periodic interest payment. The first component is the interest payment. This is the payment to compensate the borrower for loaning out the money and is based on the interest rate and the principal left to be repaid.
The second component goes towards repaying the principal of the loan which in this case is $10,000. When computing the periodic interest rate therefore, the entire amount paid per period should not be used as it would inflate the interest rate.
Soft Serve ice cream has been around since the 1930's, with a large milk base proteins to achieve the desired soft texture. This style of ice cream is characterized by light flavor and rich creamy texture. To make soft serve ice cream you will need a combination of whole milk, heavy cream, sugar, salt, dry ice and your desired flavorings. You will need to blend the core ingredients together then churn in the crushed dry ice to achieve the desired texture. You can mix in a variety of fresh fruits in the blending process, and you can also juice them prior to the churning process.
If it is greater than or equal to the price.
hope this helps
Answer:
The entries are as follows
To record estimated returns on Sales
Debit: Sales Refund Payable Account $131,400
Credit: Accounts Receivables $131,400
To record estimated Cost of Sales returns
Debit: Inventory Returns Estimated Account $77,700
Credit: Inventory on Sales on Returns $77,700
Explanation:
To derive the figure for Sales Refund payable for the year
6% of $2,190,000
= 
= $131,400
To derive the figure for Inventory cost on Sales Refund payable for the year
6% of $1,295,000
= 
= $77,700
Answer:
Income
Explanation:
Suppose the market wage for cashiers increases from $7 per hour to $9 per hour. As a result, Pat, who is a cashier, now works five more hours per week. On the other hand Chris, who is also a cashier, now works five fewer hours per week.Chris's behavior illustrates the <u>Income</u> effect of a wage increase.
As the income increases, few individual prefer to work fewer hours as now they are able to maintain target by working fewer than at previous wage rate. These people prefer leisure over higher income and want to settle down with limited income. These people may have a backward bending individual labour supply curve – they may choose to work fewer hours when the wage rate rises.
