Answer: 145332
Explanation:
Current assets are the assets that a company has wgich are expected to either be sold or used during the next year and they iinclude cash, stock inventory, accounts receivable, marketable securities, cash equivalents, pre-paid liabilities, etc
It should be noted that:
Total asset = Current asset + $356190 + $4176
= Current asset + $360366
Long term debt + equity = 76445 + 200000 + 134461
= $410906
Current liabilities = $94,792
Since current liabilities= Total asset - (long term debt + equity)
$94,792 = (Current asset + $360366) - $410,906
Current asset = $94792 + $410906 - $360366
= $505698 - $360366
= $145,332
3. Finding the key to industrial efficiency There are five sandwich shops in the city of Romeria that are constantly competing for customers. Each sandwich shop always looks for ways to improve its sandwiches while keeping costs under control. Most economists would agree that this scenario would likely lead to industrial .
Answer: Efficiency
Explanation:
The five sandwich shops constantly competing in an effort to gain competitive advantage over their competitors whilst keeping costs low are adhering to one Porter's competitive advantage theories which is Cost Leadership.
This benefits the industry as a whole because the sandwich companies will keep coming up with new ways and technologies to produce sandwiches at the lowest cost so that can increase their productivity.
Efficiency by definition is to make things at the lowest cost so the sandwich shops constantly aiming to reduce or at least maintain cost while increasing production is going to lead to Industrial Efficiency.
Last year, Michelson Manufacturing reported $10,250 of sales, $3,500 of operating costs other than depreciation, and $1,250 of depreciation. The company had no amortization charges, it had $3,500 of bonds outstanding that carry a 6.5% interest rate, and its federal-plus-state income tax rate was 21%. This year's data are expected to remain unchanged except for one item, depreciation, which is expected to increase by $725. By how much will the depreciation change cause the firm's net after-tax income and its net cash flow to change
Answer and Explanation:
The computation is shown below:
Particulars Last year Current year
Sales $10,250 $10,250
Operating cost -$3,500 -$3,500
Operating income $6,750 $6,750
less:
Interest expense
(6.5% of 3,500) -$227.50 -$227.50
depreciation expense -$1,250 -$1,975 ($1,250 + $725)
Earning before tax $5,272.50 $4,547.50
Less: Income tax
at 21% -$1,107.23 -$954.98
Net income $4,165.27 $3,592.53
Now the net cash flow is
Net income $4,165.27 $3,592.53
Add:
Depreciation $1,250 $1,975
Total net cash flows $5,145.27 $5,567.53
Change is $422.26
Multiphonics produce no new sonic alternatives for the oboe.
a. True
b. False
Answer: False
Explanation:
Most of the oboe’s history is typically represented in the drawings and the paintings of ancient civilizations. The oboe can be said to come from the family will of the shawm instrument.
It should be noted that there are different fingering positions that help in the production of multiphonics on oboe.
Therefore, the statement that "Multiphonics produce no new sonic alternatives for the oboe" is false.
Which of the following are considered
assets?
l. A vehicle
Il. Student loans
III. Rent payments
Answer:
A vehicle
because vehicles are valuable and useful.
assets-a useful or valuable thing, person, or quality.
Hoover Inc. has current assets of $350,000 and fixed plant assets of $650,000. Current liabilities are $100,000 and long-term liabilities are $250,000. There is $120,000 in preferred stock outstanding and the firm has issued 10,000 shares of common stock. Compute book value (net worth) per share $53.00. $75.00. $65.00. $84.00.
Answer:
$53.00
Explanation:
The computation of book value is shown below:-
But before that we need to determine the net asset which is
Net asset = Total asset - Total liabiliites
= ($350,000 + $650,000) - ($100,000 - $250,000)
= $1,000,000 - $350,000
= $650,000
Now
Value per share= (Net asset - preference share) ÷ number of common stocks
= ($650,000 - $120,000 ) ÷ 10,000 shares
= $530,000 ÷ 10,000
= $53 per share
Convex Mechanical Supplies produces a product with the following costs as of July 1, 20X1: Material $5 Labor 3 Overhead 2 $10 Beginning inventory at these costs on July 1 was 11,500 units. From July 1 to December 1, Convex produced 26,000 units. These units had a material cost of $7 per unit. The costs for labor and overhead were the same. Convex uses FIFO inventory accounting. a. Assuming that Convex sold 28,000 units during the last six months of the year at $14 each, what would gross profit be?
Answer:
Gross profit= $79,000
Explanation:
Giving the following information:
July 1, 20X1:
Material $5
Labor 3
Overhead 2
Total= $10
Beginning inventory at these costs on July 1 was 11,500 units.
From July 1 to December 1, Convex produced 26,000 units.
These units had a material cost of $7 per unit.
First, we need to determine the cost of goods sold. Under the FIFO (first-in, first-out) method, the COGS is calculated using the cost of the first units produces.
COGS= 11,500*10 + 16,500*12= $313,000
Now, we can calculate the gross profit:
Gross profit= sales - cogs
Gross profit= 28,000*14 - 313,000
Gross profit= $79,000
Select the correct answer. Adalyn wants to find a job in Education and Training. She has excellent analytical thinking and leadership skills, but she does not want to work directly with students. Which career would be the best option for her? A. curriculum developer B. high school teacher C. school counselor D. speech-language pathologist
Answer:
Curriculum
becasue it is the only job where she does not interact with students.
Answer:
A curriculum because
The elements of professionalism contains_ attributes.
Answer:
Competency.
Explanation:
Which of the following is a descriptive data mining technique?
1. Linear Programming.
2. Decision Analysis-Utility Theory.
3. SQL.
4. Cluster Analysis.
5. What-If Analysis.
Answer:
Descriptive data mining technique:
4. Cluster Analysis
Explanation:
Cluster Analysis is one of the data mining techniques. It classifies variables into similar groups according to their subjects. It is also a descriptive technique. Descriptive mining produces correlation, cross tabulation, frequency, etc, thereby discovering the regularities in the data, revealing data patterns, and discovering the subgroups of the data.
A large corporation has accrued a lot of debt over the last two years in an
effort to expand its business. While they have gained new customers, they
still aren't making enough money to pay off their debt. Which type of
bankruptcy would this company likely want to file?
A. Chapter 13
B. Chapter 7
C. Chapter 1
D. Chapter 11
Someone help plz
Answer:
D. Chapter 11
Explanation:
Apex
Cyber Security Systems had sales of 3,300 units at $65 per unit last year. The marketing manager projects a 20 percent increase in unit volume sales this year with a 40 percent price increase. Returned merchandise will represent 10 percent of total sales. What is your net dollar sales projection for this year?
Answer:
$324,324
Explanation:
Next year projected sales = 3300 * ( 1 + 0.20)
= 3300 * 1.20
= 3960 units
Next year price = 55 * (1+0.40)
= 65 * 1.40
= $91
Total sales = 3960 * $91
Total sales = $360,360
Sales return = $360,360 * 10% = $36,036
Net sales = Total sales - Sales Return
Net sales = $360,360 - $36,036
Net sales = $324,324
A 4.8% coupon bond with 9 years remaining until maturity is currently trading at $1087.43. Assume semi-annual coupon payments. The bond's YTM is __________%. Round your *final* answer to 2 decimal places (example: 12.34). Hint: be sure your inputs reflect the semiannual payment frequency.
Answer:
3.66%
Explanation:
The yield to maturity can be computed using Excel rate function below:
=rate(nper,pmt,-pv,fv)
nper is the number of semiannual coupons in 9 years i.e 9*2=18
pmt is the amount of semiannual coupon =$1000*4.8%*6/12=24
pv is the current price which is $1087.43
face value is $1000
=rate(18,24,-1087.43,1000)
rate=1.83% (semiannual yield)
annual yield=1.83%*2
annual yield=3.66%
Marko, Inc. is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $5,900, $10,900, and $17,100 over the next three years, respectively. After that time, they feel the business will be worthless. Marko has determined that a rate of return of 13 percent is applicable to this potential purchase. What is Marko willing to pay today to buy ABC Co.
Answer:
$25,608.70
Explanation:
We are to calculate the present value of the cash flows
Present value is the sum of discounted cash flows
present value can be calculated using a financial calculator
Cash flow in year 1 = $5,900
Cash flow in year 2 = $10,900
Cash flow in year 3 = $17,100
I = 13%
Present value = $25,608.70
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Comprehensive CVP analysis "I’ll never understand this accounting stuff," Blake Dunn yelled, waving the income statement he had just received from his accountant in the morning mail. "Last month, we sold 2,000 stuffed State University mascots and earned $6,565 in operating income. This month, when we sold 3,000 I thought we’d make $9,848. But this income statement shows an operating income of $11,615! How can I ever make plans if I can’t predict my income? I’m going to give Janice one last chance to explain this to me," he declared as he picked up the phone to call Janice Miller, his accountant.
Answer:
The problem with Blake's reasoning is that he believes that all costs are variable, and that is not true. In order to predict future profits, he divided $6,565 by 2,000 stuffed mascots = $3.2825 profit per stuffed mascot sold. But when sales increased to 3,000 units, the profits increased much more.
This happens because some costs are variable and change directly with the number of units sold, while others are fixed and remain the same regardless of the number of units sold.
The question is incomplete, the accounts are missing, so I looked for them:
February March
Sales revenue $25,000 $37,500
Cost of goods sold 10,000 15,000
Gross profit 15,000 22,500
Rent expense 1,500 1,500
Wages expense 3,500 5,000
Shipping expense 1,100 1,650
Utilities expense 750 750
Advertising expense 1,000 1,400
Insurance expense 585 585
Operating income $6,565 $11,615
The income statement using the contribution margin format would be as follows:
Income Statement Year 1 Year 2
Sales revenue $25,000 $37,500
Variable costs:
Cost of goods sold $10,000 $15,000 Wages expense* $3,000 $4,500 Shipping expense $1,100 $1,650 Advertising expense* $800 $1,200Contribution margin $10,100 $15,150
Period costs:
Wages expense* $500 $500 Advertising expense* $200 $200 Rent expense $1,500 $1,500 Insurance expense $585 $585 Utilities expense $750 $750Net income $6,565 $11,615
*high low cost method for wages expense and advertisement expense:
variable wages expense = ($5,000 - $3,500) / (3,000 - 2,000) = $1.50 per unit
fixed wages expense = $5,000 - (3,000 x $1.50) = $500
variable advertising expense = ($1,400 - $1,000) / (3,000 - 2,000) = $0.40 per unit
fixed advertising expense = $1,400 - (3,000 x $0.40) = $200
Levin Furniture buys a living room set with a $4,000 list price and a 55% trade discount. Freight (FOB shipping point) of $50 is not part of the list price. What is the delivered price (including freight) of the living room set, assuming a cash discount of 2/10, n/30, ROG? The invoice had an April 8 date. Levin received the goods on April 19 and paid the invoice on April 25.
Answer:Delivered price=$1,814
Explanation:
List Price = $4,000
Trade discount = 55%
Price after discount = $4,000 - 55% x $4000
$4000- $2,200 = $1,800
if Levin pays within 10 days he will have a discount of 2 %, which he did
Therefore 2% x $1800 = $36
Delivered price = $1800 -$36+ freight charges ( shipping)
$1800 -$36 + $50=$1814
If the price of chicken feed decreases, the supply of chicken nuggets will shift
Answer:The production of chicken nuggets should increase because more feed will be bought which means the chickens could eat more, this will lead to bigger chickens with more fat, which increases the chicken nugget production because, chicken nuggets are 50% meat and the rest is fat, ground bone, blood vessels and connective tissues.
Explanation:
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Hope this helps
Presenteeism is exhibited in all the following ways except:___________.
a. even when injured reporting to work. coming to work when ill.
b. when an employee faces dangerous conditions to get to work.
c. when the employee is preoccupied by personal problems.
d. when an absence would immediately affect many people.
Answer: d. when an absence would immediately affect many people
Explanation: Presenteeism as culled from the word present may be described as a situation whereby an individual or employee makes himself or herself available at work despite the challenges being faced which should have kept such employee out of work. This challe ges may range from bodily or physical injury or sickness, emotional and psychological disorder and other factors which could limit productivity and output or even result in avoidable loss on the path of the employer if such employee had stayed off work. A sick worker or one who faces dangerous challenges to get to work but still manages to be present exhibits Presenteeism.
When the market for product Y includes a positive externality:__________.
A. marginal private benefit exceeds marginal social benefit.
B. marginal private cost exceeds marginal social cost.
C. marginal social cost exceeds marginal private cost.
D. marginal social benefit exceeds marginal private benefit.
Answer:
D
Explanation:
A good has positive externality if the benefits to third parties not involved in production is greater than the cost. an example of an activity that generates positive externality is research and development. Due to the high cost of R & D, they are usually under-produced. Government can encourage the production of activities that generate positive externality by granting subsidies.
How do organizations use and deliver podcasts business communication?
Explanation:
Podcasts are usually recorded audio clips but may also be in video or document formats.
The following are some of the uses of podcasts by organizations;
to market new productsprovide information about the organizationto reach new audiences (for example, audio podcast reaches the visually impaired)These podcasts are usually delivered via the organization's podcast channel/account, so users can just follow the organization's channel to get the latest episodes.
The founders of "Black Lives Matter" would be consider
according to your textbook.
1)Social activists
2)justice Warriors
3)Social warriors
4)Social entreprenures
Answer:
4)Social entreprenurers
What is Neeley Grocery's operating leverage factor at the target level of operating income?
A. 1.60.
B. 0.63.
C. 2.67.
D. 0.40.
Answer:
A. 1.60
Explanation:
For computation of operating leverage factor first we need to determine the required contribution which is shown below:-
Required Contribution = Target Profit + Fixed Cost
= $25,000 + $15,000
= $40,000
Operating Leverage Factor = Contribution ÷ Operating Income
= $40,000 ÷ $25,000
= $1.60
Therefore for computing the operating leverage factor we simply applied the above formula.
What word would Harvard Business School professor Clayton M. Christensen use to describe the rapid growth of the
widespread use of mobile computing devices?
Answer: c
Explanation:
You are considering the purchase of a new machine to help produce a new product line being introduced. The machine is expected to have a setup time of 10 minutes per batch and a processing time of 2 minutes per part. You plan to have batch sizes of 50 parts. The plant operates 8 hours per day.
A. (5 points) What is the capacity of the machine in batches per day?
B. (5 points) What is the capacity of the machine in parts per day?
C. (5 points) How many batches per daycan you run through the machine if you decide to operate the machine at a 70% utilization rate?
D. (5 points) How many parts per daycan you process through the machine if you decide to operate the machine at an 85% utilization rate?
Answer:
A. 4.3 batches
B. 215 parts
C. 3 batches
D. 184 parts
Explanation:
Please find explanation attached
Suitable options to solve the financial problem of a restaurant owner
Answer:SBA Loans for Restaurants. ...
Restaurant Equipment Financing. ...
(Unsecured or Secured) Business Lines of Credit. ...
Unsecured Restaurant Business Loans. ...
Restaurant Cash Advances.
Explanation:
The number of taxicabs in Motorville and the taxicab fares are regulated. The fare currently charged is Rs.500 a ride. Motorville taxicab drivers want to obtain government's permission to raise the fare to increase their revenues and ask you to be their economic adviser. After studying the market, you come up with the following demand schedule for taxicab rides:
Price (Rupees per ride) Quantity demanded (rides per month)
300 160
400 120
500 80
600 40
700 0
(i) Calculate the price elasticity of demand for taxicab rides as the fare rises from Rs.500 to Rs.600. Is the demand price elastic or inelastic for this fare rise? (2 Marks)
(ii) What happens to the taxicab drivers' total revenue if the fare rises from Rs.500 to Rs.600? How can you use your answers in part “a” to answer this question? Should the drivers try to obtain permission to raise the fare? (2 Marks)
(iii) Calculate the price elasticity of demand for taxicab rides as the fare falls from Rs.500 to Rs.400. Is the demand price elastic or inelastic for this fare decrease?
Answer:
The answer is below
Explanation:
i) The price elasticity of demand is given by the formula:
[tex]Price \ elasticity\ of \ demand=\frac{\Delta Q}{\Delta P} =\frac{\frac{Q_2-Q_1}{(Q_2+Q_1)/2} }{\frac{P_2-P_1}{(P_2+P_1)/2} } \\\\Price \ elasticity\ of \ demand=\frac{\frac{40-80}{(40+80)/2} }{\frac{600-500}{(600+500)/2} }=\frac{-2/3}{2/11} =3.667 (ignore \ the\ sign)[/tex]
Since the price elasticity of demand is greater than 1 hence it is elastic
ii) Since the price elasticity of demand is elastic as a result of increase in fare, hence the total revenue would decrease.
iii)
[tex]Price \ elasticity\ of \ demand=\frac{\Delta Q}{\Delta P} =\frac{\frac{Q_2-Q_1}{(Q_2+Q_1)/2} }{\frac{P_2-P_1}{(P_2+P_1)/2} } \\\\Price \ elasticity\ of \ demand=\frac{\frac{120-80}{(120+80)/2} }{\frac{400-500}{(400+500)/2} }=\frac{0.4}{-2/9} =1.8 (ignore \ the\ sign)[/tex]
Since the price elasticity of demand is greater than 1 hence it is elastic
Which of the following are required by the Sarbanes-Oxley Act?
A. A report on internal control. B. A vertical analysis. C. A common-sized statement. D. A price-earnings ratio.
Answer:
a. a report on internal control
Explanation:
the sarbanes-oxley act was passed in 2002. This law serves to help protect investors and the public from fraud while giving financial reports by corporations. It was sponsored by Senator Paul Sarbanes and Representative Michael Oxley. This legislation is to help improve the reliability of corporations financial reporting as well as to help improve the confidence of shareholders and investors.
This act requires a report on internal control.
ABC private limited as given the dividend of $5 last year and has promised to increase the dividend by 8% each year for the next four years.
a. Find out the dividend of each of the next four years. [2 marks]
b. If the stocks are selling at $120 at the end of fourth year, find out the price of stock today, assuming expected return as 12%.[2 marks]
c. Write a detailed comment on what will happen to the today’s selling price of the stock if the expected return is increased from 12% to 16%.[3 marks]
d. If the stocks are selling at $90 today, find out the price of stock at the end of fourth year, assuming expected return as 12%. [2 marks]
e. Write a detailed comment on what will happen to the selling price of the stock at the end of fourth year if the expected return is decreased from 12% to 8%.
Answer:
a. Year 1 dividend - $5.40; Year 2 dividend = $5.83; Year 3 dividend = $6.30; and Year 4 dividend = $6.80
b. Price of stock today = $76.26
c. When the the expected return is increased from 12% to 16%, the price of stock today will fall from $76.26 to $66.27. This indicates a 13% decrease in price. Therefore, there is a negative relationship between the price of stock today and the expected return. That is, as the expected return increases, the price of stock today decreases.
d. The price of stock at the end of fourth year is $141.62.
e. When the the expected return is decreased from 12% to 8%, the price of stock the end of fourth year falls from $141.62 to $122.44. This indicates a 14% decrease in price. Therefore, there is a positive relationship between the price of stock today and the expected return. That is, as the expected return decreases, the future price of stock also decreases.
Explanation:
a. Find out the dividend of each of the next four years. [2 marks]
Growth rate = 8%, or 0.08
Year 1 dividend = Last year dividend * (1 + Growth rate) = $5 * (1 + 0.08) = $5 * 1.08 = $5.40
Year 2 dividend = Year 1 dividend * (1 + Growth rate) = $5.40 * (1 + 0.08) = $5.40 * 1.08 = $5.832, or $5.83
Year 3 dividend = Year 2 dividend * (1 + Growth rate) = $5.832 * (1 + 0.08) = $5.832 * 1.08 = $6.29856, or $6.30
Year 4 dividend = Year 3 dividend * (1 + Growth rate) = $6.29856 * (1 + 0.08) = $6.29856 * 1.08 = $6.8024448, or $6.80
b. If the stocks are selling at $120 at the end of fourth year, find out the price of stock today, assuming expected return as 12%.[2 marks]
To calculate this, we use the present value (PV) formula as follows:
PV = FV / (1 + r)^n ..................... (1)
Where,
PV = Price of stock today = ?
FV = Stock selling price at the end of fourth year = $120
r = expected return = 12%, or 0.12
n = number of years = 4
Substitute the values into equation (1), we have:
PV = $120 / (1 + 0.12)^4 = $120 / (1.12)^4 = $120 / 1.57351936 = $76.26
Therefore, the price of stock today is $76.26
c. Write a detailed comment on what will happen to the today’s selling price of the stock if the expected return is increased from 12% to 16%.[3 marks]
To calculate the price of stock today, we use equation (1) in part b above and change r to 16%, or 0.16; while other values remain the same. Substituting the values into equation (1), we have:
PV = $120 / (1 + 0.16)^4 = $120 / (1.16)^4 = $120 / 1.81063936 = $66.27
Percentage change in price = ($66.27 - $76.26) / $76.26 = -0.13, or -13%
Comment:
When the the expected return is increased from 12% to 16%, the price of stock today will fall from $76.26 to $66.27. This indicates a 13% decrease in price. Therefore, there is a negative relationship between the price of stock today and the expected return. That is, as the expected return increases, the price of stock today decreases.
d. If the stocks are selling at $90 today, find out the price of stock at the end of fourth year, assuming expected return as 12%. [2 marks]
To calculate this, we use the future value (FV) formula as follows:
FV = PV * (1 + r)^n ..................... (2)
Where,
FV = Stock selling price at the end of fourth year = ?
PV = Price of stock today = $90
r = expected return = 12%, or 0.12
n = number of years
Substitute the values into equation (2), we have:
FV = $90 * (1 + 0.12)^4 = $90 * (1.12)^4 = $90 * 1.57351936 = $141.62
Therefore, the price of stock at the end of fourth year is $141.62.
e. Write a detailed comment on what will happen to the selling price of the stock at the end of fourth year if the expected return is decreased from 12% to 8%.
To calculate the price of stock at the end of fourth year, we use equation (2) in part c above and change r to 8%, or 0.08; while other values remain the same. Substituting the values into equation (2), we have:
FV = $90 * (1 + 0.08)^4 = $90 * (1.08)^4 = $90 * 1.36048896 = $122.44
Percentage change in price = ($141.62 - $122.44) / $141.62 = -0.14, or -14%
Comment:
When the the expected return is decreased from 12% to 8%, the price of stock the end of fourth year falls from $141.62 to $122.44. This indicates a 14% decrease in price. Therefore, there is a positive relationship between the price of stock today and the expected return. That is, as the expected return decreases, the future price of stock also decreases.
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Here is some basic data for Honey Dukes Corporation:
Beginning raw materials inventory
Beginning finished goods inventory
Cost of direct materials requisitioned
Actual manufacturing overhead
Cost of goods sold
$37,000 Beginning work in process inventory
59,000 Cost of materials purchased
87,000 Direct labor incurred
195,000 Completed goods
255,000 Manufacturing overhead rate (% of
direct labor)
68,000
188,000
195,000
287,000
125%
The journal entry to record the cost of jobs sold would include a
O credit to Finished Goods Inventory account for $255,000.
debit to Finished Goods Inventory account for $255,000.
O credit to Finished Goods Inventory account for $287,000.
debit to Cost of Goods Sold account for $287,000.
For Honey Dukes Corporation, a debit of $287,000 from the Cost of Goods Sold account and a credit of the same amount to the Finished Goods Inventory account would be the appropriate journal entry to reflect the cost of jobs sold.
Record the journal entry.For Honey Dukes Corporation, the correct journal entry to represent the cost of jobs sold would be a debit of $287,000 from the Cost of Goods Sold account and a credit of the same number to the Completed Products Inventory account. This is because the cost of products sold, which accounts for the price of all things sold during the time and includes the cost of direct material and direct, direct labour, and manufacturing overhead. The finished products inventory account reflects the cost of all produced goods available for sale but not yet purchased. The cost is thus transferred from the finished products inventories account to the cost of goods sold column when the goods are sold.
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Where would period costs be found on the financial statements?A. As operating expenses on the income statement in the period incurred.B. As operating expenses on the income statement for a previous period.C. Under current assets on the balance sheet.D. Under current liabilities on the balance sheet.
Answer:
A. As operating expenses on the income statement in the period incurred
Explanation:
In Variable Costing, Both Fixed Manufacturing Costs and Non - Manufacturing Costs are treated as Period costs. In Absorption Costing, only Non - Manufacturing Costs are treated as Period costs.
Period Costs can be found under operating expenses on the income statement in the period incurred.
Examples include Advertising, Rentals, Selling and Distribution and any Administration costs.
The journal entry to record the receipt of a payment within the discount period on a sale of $900 with terms of 2/10, n/30 will include a
Answer and Explanation:
Given that
The Sale is made for $900
Terms 2/10, n/30 that means if the payment is made within 10 days than 2% discount is eligible and the total credit period allowed is 30 days
Now the journal entry to record the receipts of a payment within discount period is
Cash Dr $882
Sales discount $18
To Account receivable $900
(Being the cash received)