The consumer price index last year must have been 158.58.
What was the consumer price index last year?
The consumer price index is used to measure inflation. It does this by measuring the changes in the price of a basket of good.
CPI = (cost of basket of goods in current period / cost of basket of goods in base period) x 100
CPI last year = (100 - 3.1) x 163.65 = 158.58
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An insurance policy is most useful as a way to what?
Answer: c. protect against the cost of unexpected events
Explanation: everyone has a time but funeral costs and other cost can really cost a lot so you get life insurance too save money so if you die that money can be used for funeral costs etc
Recently, a Domino's pizza franchise in Upstate New York made the strategic decision to stay open for 24 hours a day. The manager made this decision in response to increased demand for Domino's pizza. Other Domino's franchise owners are now considering adopting a similar strategy. In this activity, you will categorize a set of statements regarding activities in the internal and external environments as they relate to Domino's pizza, and the potential initiative of staying open 24 hours a day. These statements will identify Strengths, Weaknesses, Opportunities, or Threats.
These questions are part of SWOT analysis, which analyzes the organization's strengths and weaknesses, and the opportunities and threats it faces. This tool is a critical planning tool that allows firms to assess both the internal environment in regards to its Strengths and Weaknesses and the external environment in regards to its Opportunities and Threats. This planning analysis can be a foundation to carry the organization through later management functions such as organizing, leading, and controlling operations.
Based on these descriptions, decide if the statement is reflective Of a Strength, Weakness, Opportunity, or Threat. Drop the statement in the correct position.
a. Staffing
b. Health
c. Strong Brand Name
d. Demand
e. Inventory Management
f. Competitors
g. Excellent Location
h. Late Night Eating
Answer and Explanation:
The matching is shown below:
For Strength:
Strong Brand Name
Good Location
For Weakness:
Staffing
Inventory Management
For Opportunity:
Demand
Late Night Eating
For Threat:
Health
Competitors
Like this way it is to be matched
And the same is to be considered
It basically performs the SWOT Analysis
There are 713 identical plastic chips numbered 1 through 713 in a box.
What is the probability of reaching into the box and randomly drawing the chip numbered 564? Express your answer as a simplified fraction or a decimal rounded to four decimal places.
Answer:
0.0014
Explanation:
There are 713 chips.
Only one chip is numbered 564.
Finding the probability of picking no. 564 will be
=1/713
=0.0014
Profit is the dollar amount a firm collects from its customers after selling its goods or services. True False
It is false that Profit is the dollar amount a firm collects from its customers after selling its goods or services.
What is profit?Profit refers to the surplus that comes after deducting cost from the revenue made. It is defined as gain, especially when achieved by increasing the price of goods.
The above means that the dollar value received after deducting cost from revenue made by a firm is termed profit.
Hence, profit is not the dollar amount a firm collects from its customers after selling its goods or services.
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In the context of the images involved in managing change, which of the following images have a common assumption that change managers receive change instead of initiating change? (Check all that apply.) Multiple select question. Nurturer Caretaker Interpreter Coach
The people that common assumption that change managers receive change instead of initiating change are the caretaker and the nurturer.
Who is a manager?It should be noted that a manager simply means an individual who controls other people in an organization to achieve a particular goal.
In this case, the people that common assumption that change managers receive change instead of initiating change are the caretaker and the nurturer.
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The local Target store sells a variety of Dyson vacuum cleaners. A particularly popular model is the DC22, which costs Target $275 per unit. The annual holding cost per vacuum is 10% of this cost. Demand for the DC22 is relatively constant, but experiences some fluctuations from day to day. Average daily demand for the DC22 is normally distributed with an average of 5 units and a standard deviation of 2 units (and Target is open 365 days a year). When Target places an order of DC22s from its warehouse, the order arrives 3 days later. The fixed ordering cost is $10, regardless of how many DC22s are ordered. Target is willing to tolerate a 1% chance of stockout on any one order cycle. Target would like to use a continuous review inventory model. What is the reorder point (including safety stock)
Answer:
24 units
Explanation:
safety stock = z-score 99% x √lead time x standard deviation of demand
safety stock = 2.576 x √3 x 2 = 8.92 units ≈ 9 units
reorder point = lead time demand + safety stock
lead time demand = 3 days x 5 = 15 units
reorder point = 15 + 9 = 24 units
Your uncle has $90,000 that he wishes to invest now to use the accumulation for purchasing a retirement annuity in five years. After consulting with his financial adviser, he has been offered four types of fixed income investments, labeled as investments A, B, C, and D. Investments A and B are available at the beginning of each of the next five years (call them years 1 to 5). Each dollar invested in A at the beginning of a year returns $1.20 (a profit of $0.20) two years later, in time for immediate reinvestment. Each dollar invested in B at the beginning of a year returns $1.36 three years later. Investments C and D will each be available at one time in the future. Each dollar invested in C at the beginning of year 2 returns $1.66 at the end of year 5. Each dollar invested in D at the beginning of year 5 returns $1.12 at the end of
Answer:
The question is incomplete, it is missing the last part:
Each dollar invested in D at the beginning of year 5 returns $1.12 at the end of year 5.
Your uncle is obligated to make a balloon payment on an existing loan, in the amount of $24,000, at the end of year 3. He wants to cover that payment out of these funds as well.
First of all, you must invest enough money in B in order to pay your debt.
present value = future value / expected return
present value = $24,000 / $1.36 = $17,647.06
you have $90,000 - $17,647.06 = $72,352.94 to invest in A.
at the end of year 2, you will have:
future value = present value x expected return = $72,352.94 x $1.20 = $86,823.53
then you should invest that money ($86,823.53) in invested D and at the end of year 4 you will have:
future value = $86,823.53 x $1.66 = $144,127.06
finally, you should invest $144,127.06 in investment E and at the end of ear 5 you will have:
future value = $144,127.06 x $1.12 = $161,422.31
A machine with a cost of $85,000 has an estimated residual value of $5,000 and an estimated life of 5 years or 20,000 hours. What is the amount of depreciation for the second full year, using the double-declining-balance method?
The amount of depreciation for the second full year, using the double-declining-balance method is $20,400.
What is the amount of depreciation in the second year?Depreciation is a method used in expensing the value of an asset.
Double declining depreciation expense = [2 x (1/useful life of the asset)] x cost of the asset
Depreciation expense in year 1 = 2/5 x $85,000 = $34,000
Book value at the beginning of year 2 = $85,000 - $34,000 = $51,000
Depreciation expense in year 2 = 2/5 x $51,000 = $20,400
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One of the major problems that led to the financial
crisis was the “housing bubble.” What is meant by this
term?
Answer:
A housing bubble a sustained but temporary condition of over-valued prices and rampant speculation in housing markets. The U.S. experienced a major housing bubble in the 2000s caused by inflows of money into housing markets, loose lending conditions, and government policy to promote home-ownership.
The town of Millbridge has just agreed to pay a pension for the town clerk. The pension will be $40,000 per year for the next 20 years. Dwight Ives, the town manager, has decided that the town should put aside enough money today to pay for the entire pension. He has argued that the town will not receive the clerk's services in the future, so future taxpayers should not have to pay the pension. How much must be put aside, assuming the town earns 6 percent compounded annually
The amount that must be put aside now is $458,796.85.
How much should be put aside now?The first step is to determine the future value of the annuity:
Future value = yearly payment x annuity factor
Annuity factor = {[(1+r)^n] - 1} / r
Where:
r = interest rate = 6%n = number of years = 20$40,000 x [(1.06^20) - 1] / 0.06 = $1,471,423.65
Now, determine the present value of this amount: $1,471,423.65 / (1.06^20) =$458,796.85
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A manufacturer has identified the options for acquiring a machined part. It can make the part on a standard lathe for $250 per unit (including materials). It can make the part on a numerically controlled lathe for $150 per unit (including materials). It can make the part on a machining center for $50 per unit (also including materials). The manufacturer can acquire a standard lathe for $10,000. It could acquire a numerically controlled lathe for $100,000. A machining center would cost $350,000. It has also found that it can purchase the part for $350 per unit. If the demand is 750 units, which method should be used
Answer:
From the analysis below, the cheapest option is option 2 which is to produce the machine part at $263.33 per unit using using standard lathe. Therefore, the method that should be used is to make the part on a standard lathe.
Explanation:
This can be determined by comparing the total cost per unit of the machine part of each of the options and select the lowest as follows:
Option 1: Purchase of the part
Total cost per unit if purchase = $350
Option 2: Total cost per unit using standard lathe
This can be calculated as follows:
Demand = 750 units
Cost per unit (including materials) of making the part on standard lathe = $250 per unit
Acquisition cost of a standard lathe = $10,000
Acquisition cost per unit of a standard lathe = Acquisition cost of a standard lathe / Demand = $10,000 / 750 = $13.33
Total cost per unit of standard lathe = Cost per unit (including materials) of making the part on standard lathe + Acquisition cost per unit of a standard lathe = $250 + $13.33 = $263.33 per unit
Option 3: Total cost per unit using numerically controlled lathe
This can be calculated as follows:
Demand = 750 units
Cost per unit (including materials) of using numerically controlled lathe = $150 per unit
Acquisition cost of a numerically controlled lathe = $100,000
Acquisition cost per unit of a numerically controlled lathe = Acquisition cost of a using numerically controlled lathe / Demand = $100,000 / 750 = $133.33
Total cost per unit of numerically controlled lathe = Cost per unit (including materials) of using numerically controlled lathe + Acquisition cost per unit of a numerically controlled lathe = $150 + $133.33 = $283.33 per unit
Option 4: Total cost per unit using machining center
This can be calculated as follows:
Demand = 750 units
Cost per unit (including materials) of using machining center = $50 per unit
Acquisition cost of a machining center = $350,000
Acquisition cost per unit of a machining center = Acquisition cost of a using machining center / Demand = $350,000 / 750 = $466.67
Total cost per unit of machining center = Cost per unit (including materials) of using machining center + Acquisition cost per unit of a machining center = $50 + $466.67 = $516.67 per unit
Conclusion
From the above, the cheapest option is option 2 which is to produce the machine part at $263.33 per unit using using standard lathe. Therefore, the method that should be used is to make the part on a standard lathe.
Give me some tips!
How do we get all A+ on a test?
1. Get a time schedule of what you need to do every day
I.e - a planner that you handwrite in or an app2. Read your textbook of what the teacher will teach ahead of time
it sounds painful but as you progress into more challenging classes, it will help a lot3. Make sure to relax
sounds counterintuitive to working hard, but if you feel tired and unhappy, your work will show that4. Work efficiently not necessarily hard
don't just work hard for the sake of working hard, organize your task into smaller chunks (ex. with a planner) and the day will fly by fasterHope that helps!
Professor Etheridge, a faculty member at Allstate University, wants to require her students to read an article from National Geographic Magazine as part of her course. National Geographic is a well-known magazine that publishes multiple scientific articles in each issue. The article Professor Etheridge wants to use is approximately 15 pages long and is not available in the University Library. So, Professor Etheridge decides to make 20 copies of the article, enough for each one of her students, and provides the article to each student free of charge. Has Professor Etheridge violated copyright law? Why or why not?
Answer:
Yes
Explanation:
The term copyrights simply refer to exclusive rights vested upon someone who is the original creator of a work, usually the copyrights owner.
Remember, we are told that "Professor Etheridge decides to make 20 copies of the [National Geographic Magazine] article". Well, according to the US copyrights office, the term "copies" refers to "material objects, other than phonorecords,....and from which the work can be perceived, reproduced, or otherwise communicated, either directly or with the aid of a machine or device."
We are told, "Professor Etheridge decides," note, without permission from National Geographic Magazine "to make 20 copies of the article." Which means she had violated US copyright law.
Crystal Corporation makes $2,300 payments every month for leasing office equipment. Crystal recorded a lease payment as follows: Lease payable 1,380 Interest expense 920 Cash 2,300 Amortization expense 1,380 Right-of-use asset 1,380 Crystal must have a(n):
Crystal Corporation must have an operating lease as its makes $2,300 payments every month for leasing office equipment.
What is an operating lease?An operating lease refers to a contractual agreement that permits use of an asset without actually transferring the full ownership rights to other party.
In conclusion, the firm have an operating lease as its makes $2,300 payments every month for leasing office equipment.
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Impact of Increased Sales on Operating Income Using the Degree of Operating Leverage Chillmax Company had planned to sell 3,500 pairs of shoes at $60 each in the coming year. Unit variable cost is $21 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $78,000 (includes fixed factory overhead and fixed selling and administrative expense). Operating income at 3,500 units sold is $58,500. The degree of operating leverage is 2.3. Now Chillmax expects to increase sales by 10% next year.
Required:
1. Calculate the percent change in operating income expected.
_______%
2. Calculate the operating income expected next year using the percent change in operating income calculated in Requirement 1.
Answer:
1. Degree of Operating Level = %Δ in EBIT / %Δ in sales
2.3 = %Δ in EBIT / 10
%Δ in EBIT = 2.3*10
%Δ in EBIT = 23
Hence, the percentage change in EBIT is 23%
2. Operating Income Expected = Operating Income * (1+%Δ in EBIT)
Operating Income Expected = $58,500 *(1+23%)
Operating Income Expected = $58,500 *1.23
Operating Income Expected = $71,955
One benefit of obtaining your bachelor degree over your associate degree is
If the economy is in a recession, appropriate policies to pursue may include Question 9 options: a decrease in government spending that shifts the AD curve to the right. a reduction in research
If the economy is in a recession, the appropriate policies to pursue may include Investment in technology that shifts the AS curve to the right.
What is an Economic Recession?This refers to the period of declining economic performance in a country where there are drops in spending.
Hence, with this in mind, the best policy to engage in is an Expansionary fiscal policy and this can be done with some other policies such as engaging in activities that shift the aggregate supply curve to the right so that productivity would increase and inflation would reduce.
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which is the purpose of the U.S. treasury department?
Answer:
The Department of the Treasury manages Federal finances by collecting taxes and paying bills and by managing currency, government accounts and public debt. The Department of the Treasury also enforces finance and tax laws.
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Your coin collection contains 53 1952 silver dollars. If your grandparents purchased them for their face value when they were new, how much will your collection be worth when you retire in 2059, assuming they appreciate at an annual rate of 6 percent?
Answer:
Value of collection = $16,652.38
Explanation:
The compound interest formula is:
[tex]A = P [ 1 + \frac{r}{n} ] ^{nt}[/tex]
were,
P is the principal, which is $95 since that is the original value of 95 silver dollars purchased for $1 each.
r is the interest rate of 4.9%, expressed as 0.049
n is the number of times interest compounds each year, which is 1
t is the number of years the money is invested, which is 108 because we are calculating the gain between 1952 and 2060
Plug that in, and we get:
[tex]A = 95 [ 1 + \frac{0.049}{1} ]^{180}[/tex]
[tex]A = 95 (1.049)^{180}[/tex]
A = 95 × 175.2882
A = $16,652.38
Therefore,
Value of collection = $16,652.38
Hope it helps!!!brainliest pls!!!BKK Corporation sells headphones with a unit selling price of $200 and a contribution margin ratio of 40%. Unit variable costs are expected to increase $10 next year with no change to the unit selling price. Calculate the new contribution margin ratio.
Based on the selling price and the variable costs, the new contribution margin ratio would be 35%.
What would be the new contribution margin ratio?First find the new contribution margin which is:
= Selling price - Variable cost
Solving gives:
= 200 - ( (60% x 200) + 10)
= 200 - (120 +10)
= $70
The contribution margin ratio will be:
= Contribution margin / Selling price
= 70/ 200
= 35%
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A company performs $10,000 of services and issues an invoice to the customer using the accrual method what’s the correct entry to record the transaction?
Based on the accrual method, the correct entry for $10,000 worth of services would be a debit to accounts receivable for $10,000 and a credit to Sales revenue for $10,000.
Why is this the correct entry?The company has performed a certain service for a customer and hasn't been paid for it. The customer therefore owes the company which makes them an account receivable.
The $10,000 will be considered revenue by the company so they will credit the revenue account. Accounts Receivables are assets so this account will be debited.
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When a bank evaluates a person for a loan, what does the word "capacity" refer to? Question options: A) The ability to make payments on time B) The amount of the loan in question C) Property that can be pledged to protect the lender D) The willingness to repay debts
Megan Company (not a corporation) was careless about its financial records during its first year of operations, 2017. It is December 31, 2017, the end of the annual accounting period. An outside CPA has examined the records and discovered numerous errors, all of which are described here. Assume that each error is independent of the others.
Required:
Analyze each error and indicate its effect on 2017 and 2018 net income, assets, and liabilities if not corrected. Do not assume any other errors. Use these codes to indicate the effect of each dollar amount: O = overstated, U = understated, and NE = no effect. The first transaction is used as an example.
1. Depreciation expense for 2013, not recorded in 2013, $950.
2. Wages earned by employees during 2013 not recorded or paid in 2013 but recorded and paid in 2014, $500.
3. Revenue earned during 2013 but not or recorded until 2014, $600.
4. Amount paid in 2013 and recorded as expense in 2013 but not an expense until 2014, $200.
5. Revenue collected in 2013 and recorded as revenue in 2013 but not earned until 2014,$900.
6. Sale of services and cash collected in 2013. Recorded as a &bit to Cash and as a credit
to Accounts Receivable, $300.
7. On December 31, land on credit for not recorded until payment was made on February l, 2014.
Answer:
Megan Company
Analysis of Error and Indication of its effect on 2013 and 2014 Net Income, Assets, and Liabilities:
Net Income Assets Liabilities
2013 2014 2013 2014 2013 2014
1. O O
2. O U U
3. U O U
4. O U U
5. O U U
6. U O
7. U U
Explanation:
a) Data and Calculations:
Codes to indicate the effect of each dollar amount: O = overstated, U = understated, and NE = no effect.
The overstatement of Net Income happens when an expense incurred is not recorded in the affected period or a revenue not earned is recognized in the wrong period. For instance, when depreciation expense for 2013 is not recorded in 2013, the net income is overstated. We cannot assume that the error is corrected in 2014, according to this question.
Define marginal product and give example
Answer:
the marginal product or marginal physical productivity of an input is the change in output resulting from employing one more unit of a particular input, assuming that the quantities of other inputs are kept constant.
For example, marginal product may be the increased number of products produced with the addition of one extra worker on a production line. Marginal product increases may also be attributed to other input factors besides labor.
Explanation:
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IMC, Inc. needs to schedule production of a certain item for the next four months. The unit cost is estimated to be $12 for the first two months and $14 for the last two months. From the company’s forecasting models, monthly demands are estimated to be 400, 750, 950, and 900 units, respectively. IMC can produce a maximum of 850 units each month on regular time. Overtime can be scheduled during the second and third months, which increases monthly capacity by 200 units. However, units produced on overtime cost $4 more to produce. Excess production can be stored at a cost of $3 per unit per month, but a maximum of 50 units can be stored during any month. Assuming that beginning and ending inventory levels are zero, how should the production be scheduled so as to minimize total costs?
Answer:
The correct answer will be "$40,450".
Explanation:
According to the estimation given in the scenario,
The monthly demands are:
400 units750 units950 units900 unitsSo, the total cost will be:
⇒ [tex](400\times 12) + (750\times 12) + (850\times 14) + (150\times 18) + (50\times 3) + (850\times 14)[/tex]
⇒ [tex]4800 + 9000 + 11900 + 2700 + 150 + 11900[/tex]
⇒ [tex]40,450[/tex] ($)
Illiad Inc. has decided to raise additional capital by issuing $170,000 face value of bonds with a coupon rate of 10%. In discussions with investment bankers, it was determined that to help the sale of the bonds, detachable stock warrants should be issued at the rate of one warrant for each $100 bond sold. The value of the bonds without the warrants is considered to be $136,000, and the value of the warrants in the market is $24,000. The bonds sold in the market at issuance for $152,000.(a) What entry should be made at the time of the issuance of the bonds and warrants? (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)(b) Prepare the entry if the warrants were nondetachable. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Answer:
A. Dr Cash 152,000
Dr Discount on bonds payable 40,800
Cr Bond Payable 170,000
Cr Paid-in Capital-Stock Warrants 22,800
B. Dr Cash 152,000
Dr Discount on bonds payable 18,000
Cr Bond Payable 170,000.00
Explanation:
A. Calculation for the Journal entry that should be made at the time of the issuance of both the bonds and warrants
Dr Cash 152,000
Dr Discount on bonds payable 40,800
($170,000 - $129,200)
Cr Bond Payable 170,000
Cr Paid-in Capital-Stock Warrants 22,800
(b) Preparation of the journal entry in a situation were the warrants were nondetachable.
Dr Cash 152,000
Dr Discount on bonds payable 18,000
(170,000-152,000)
Cr Bond Payable 170,000.00
Workings:
Value assigned to bonds=136,000/160,000
*152,000
Value assigned to bonds=129,200
Value assigned to warrants=24,000/160,000*152,000
Value assigned to warrants=22,800
Larned Corporation recorded the following transactions for the just completed month. $78,000 in raw materials were purchased on account. $76,000 in raw materials were used in production. Of this amount, $62,000 was for direct materials and the remainder was for indirect materials. Total labor wages of $111,000 were paid in cash. Of this amount, $105,000 was for direct labor and the remainder was for indirect labor. Depreciation of $198,000 was incurred on factory equipment.
Required:
Record the above transactions in journal entries.
Answer and Explanation:
The Journal entries are shown below:-
a. Raw materials inventory Dr, $78,000
To Accounts payable $78,000
(Being raw material inventory is recorded)
b. Work in process inventory Dr, $62,000
Manufacturing overhead Dr, $14,000
Raw materials inventory $76,000
(Being raw materials is recorded)
c. Work in process inventory Dr, $105,000
Manufacturing overhead Dr, $6,000
To Cash $111,000
(Being cash is recorded)
d. Manufacturing overhead Dr, $198,000
To Accumulated depreciation-Equipment $198,000
(Being depreciation is recorded)
Cereal entrepreneurs focus only on agricultural investments.
O True
O False
Answer:
O False
Explanation:
A cereal entrepreneur is an experienced businessperson who generates a business idea, initiates the business, but hand over its management to a different person. A cereal entrepreneur starts and runs businesses at once. Before they succeed or fail, the entrepreneur sells them or hands them over and moves on to create other ventures.
A cereal entrepreneur will have created many businesses in their careers. They contrast ordinary entrepreneurs who start, oversee the growth, and manage their business success for many years.
The following cost data relate to the manufacturing activities of Chang Company during the just completed year:_________.
Manufacturing overhead costs incurred:
Indirect materials $ 15,400
Indirect labor 134,000
Property taxes, factory 8,400
Utilities, factory 74,000
Depreciation, factory 191,200
Insurance, factory 10,400
Total actual manufacturing overhead costs incurred $ 433,400
Other costs incurred:
Purchases of raw materials (both direct and indirect) $ 404,000
Direct labor cost $ 64,000
Inventories:
Raw materials, beginning $ 20,400
Raw materials, ending $ 30,400
Work in process, beginning $ 40,400
Work in process, ending $ 70,400
The company uses a predetermined overhead rate of $22 per machine-hour to apply overhead cost to jobs. A total of 20,100 machine-hours were used during the year.
Required:1. Compute the amount of underapplied or overapplied overhead cost for the year.2. Prepare a schedule of cost of goods manufactured for the year.
Answer:
1. Under-applied or over-applied overhead = Applied manufacturing overhead - Actual manufacturing overhead
Under-applied or over-applied overhead = $4334000 (120,100*$22) - 442,200 4
Over-applied manufacturing overhead = $8,800
2. Cost of Goods Manufactured Schedule
Particulars Amount$ Amount$
Beginning raw materials 20,400
Raw material purchases 402,000
Total raw material available 424,400
Ending raw materials (30,400)
Raw material consumed 394,000
Direct labor cost 62,000
Indirect material 15,400
Indirect labor 134,000
Depreciation-factory building 191,200
Utilities-Factory 74,000
Insurance, factory 10,000
Property taxes - Inventory 8,400
Total manufacturing cost 433,400
Add: Manufacturing Overhead applied 8,800
Manufacturing Overhead applied to WIP 442,200
Add: Beginning work in process 40,400
Less: Ending work in process (70,400)
Cost of goods manufactured $870,200
Presented below is information from Blossom Computers Incorporated. July 1 Sold $21,200 of computers to Robertson Company with terms 3/15, n/60. Blossom uses the gross method to record cash discounts. Blossom estimates allowances of $1,378 will be honored on these sales. 10 Blossom received payment from Robertson for the full amount owed from the July transactions. 17 Sold $212,000 in computers and peripherals to The Clark Store with terms of 2/10, n/30. 30 The Clark Store paid Blossom for its purchase of July 17. Prepare the necessary journal entries for Blossom Computers.
Answer and Explanation:
The Journal entries are shown below:-
1. Accounts receivable Dr, $21,200
To Sales revenue $21,200
(Being sales revenue is recorded)
2. Sales return and allowances Dr, $1,378
To Allowance for sales return and allowances $1,378
(Being allowance for sales return is recorded)
3. Cash Dr, $20,564
Sales discount Dr, $636 ($21,200 × 3%)
To Accounts receivable $21,200
(Being receipt and discount allowed is recorded)
4. Account receivable Dr, $212,000
To Sales revenue $212,000
(Being sales revenue is recorded)
5. Cash Dr, $212,000
To Accounts receivable $212,000
(Being receipt of payment is recorded)