Britney pays head office rent of $12.000.0 for the next 12 months on 1st November 2050. The company's financial year runs from 1 January to 31 December. Which of the following is correct. ? Select One :
o $2,000.0 will be in SG&A, $10,000.0 will be in prepaid assets o $10,000.0 will be in SG&A, $2,000.0 will be in accrued expense o $2,000.0 will be in COGS, $10,000.0 will be in accrued expense o $10,000.0 will be in COGS, $2,000.0 will be in prepaid assets

Answers

Answer 1

The correct answer is  $10,000.0 will be in prepaid assets, and $2,000.0 will be in accrued expenses.

In accounting, prepaid expenses are payments made in advance for goods or services that will be received or used in the future.

In this case, Britney pays head office rent of $12,000.0 for the next 12 months on 1st November 2050, so the rent payment would be recorded as a prepaid asset because it is for a future period, specifically for the next 12 months, and it will be expensed over time as the company uses the rented space. The portion of the rent corresponding to the current financial year, which runs from 1 January to 31 December, will be recorded as an accrued expense because it relates to a liability that has been incurred but not yet paid.

So, $10,000.0 will be in prepaid assets and $2,000.0 in accrued expenses.

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Related Questions

Which of the following comparisons best isolates the impact of a change in activity on performance?
A) static planning budget and flexible budget
B) static planning budget and actual results
C) flexible budget and actual results
D) master budget and static planning budget

Answers

Static planning budget and flexible budget isolates the impact of a change in activity on performance.

What is the Flexible budget ?

A flexible budget is essentially a budget that allows for expected unpredictability and can be adjusted as revenues and costs change throughout the fiscal year. A business first calculates its expected fixed costs, or at least the costs that are expected to remain unchanged throughout the year.

What is main purpose of a flexible budget?

Flexible budgeting makes it easier to update budgets that don't yet have firm figures for revenue or other activities. In this approach, managers authorize all fixed costs and variable costs related to revenue and other activity indicators.

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Show Your Work gerry spends $1.25 each day on lunch at school. every friday, she buys an extra snack for $0.55. how much money will she spends in two weeks

Answers

In two weeks, Gerry will spend $13.6. We do not need to line up the decimal point when multiplying.

What is an illustration of a typical algorithm?

Standard Algorithm Division Let's take an example of each of these steps: Example: Multiply 245 by 5. Step 1: In this case, write the number to divide and the divisor as: Step 2: Start with the digit in the hundreds place in our case and proceed one digit at a time.

Gerry spends $1.25 per day on lunch on Fridays, adding $0.55.

How much will Gerry spend in the next two weeks?

There are five school days in a week, and Gerry spends $1.25 per day four days (Monday through Thursday).

On Fridays, Gerry spends $1.25 plus $0.55, which equals $1.80.

As a result, Gerry will spend $1.80 per week.

(1.25*4) + 1.80

= 5+ 1.80

= 6.8

Gerry will spend in two weeks:

2*6.8 = 13.6

The procedure for multiplying decimal numbers is identical to that of multiplying whole numbers, with the exception of where the decimal point appears in the final result.

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Why is insurance so important in today's society?

Answers

Life insurance is significant because it provides financial stability to the policyholder's family in the event of the policyholder's untimely death.

Anyone looking to protect their family, possessions, and themselves from financial risk or losses will benefit from insurance plans. Insurance plans will assist you in covering the costs of unexpected medical expenses, hospital stays, contracting illnesses and their associated treatments, and future medical care needs.

Life insurance can help the policyholder's family maintain their financial independence so they are not forced to make lifestyle compromises.

At its most basic level, insurance acts as a protective safety net that enables businesses to take on more risky and lucrative ventures than they otherwise might.

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Which sentences identity the investing activities of a cash slow statement?
Tyler Enterprises has achieved remarkable growth in the past five years. Qualified accountants have prepared and analyzed the cash flow statement to
offer financial advice to help safeguard the future of the business. It includes details of the amount of cash flowing into and out of the business. The
statement begins with the amount of revenue that the sales team has brought in. It also involves the corresponding marketing campaign costs incurred
in the promotional exhibition. The profit was declared to the shareholders in the form of dividends. The production team undertook projects that involved
installation of automatic botting machines. New dishwashers were installed in the cafeteria as part of an efficiency improvement project. The stakes of
an old division of packing material were sold off in order to concentrate solely on present business. Old investors were issued stocks when their
convertible bonds attained maturity. Some of the old machineries in the production line were sold off as scrap while rest was revamped

Answers

The sentences that identify the investing activities of a cash slow statement are - The production team undertook projects that involved installation of automatic botting machines. New dishwashers were installed in the cafeteria as part of an efficiency improvement project. The stakes of an old division of packing material were sold off in order to concentrate solely on present business. Some of the old machineries in the production line were sold off as scrap.

What are investing activities?

Investing activities include the acquisition of physical assets, the purchase of securities, and the sale of securities or assets. Cash flow from investing activities includes long-term cash uses.

Negative cash flow from investing activities may not be a bad sign if management is investing in the company's long-term health.

Therefore, the sentences mentioned above identity the investing activities of a cash slow statement.

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Answer:

"The production team undertook projects that involved installation of automatic bottling machines. New dishwashers were installed in the cafeteria as part of an efficiency improvement project" and "Some of the old machines in the production were4 sold off as scrap while rest was revamped."

Explanation:

I got it right on plato

On January 3, ATA Company purchases a copy machine for $11,500. The machine is expected to last five years and have a salvage value of $1,500. Compute depreciation expense for the first year, assuming the company uses the straight-line method.

Answers

If the business follows the straight-line technique, the depreciation expense for the first year will be $2,000.00. The ATA Company spends $11,500 on a copier on January 3.

A corporation, sometimes known as co, is a legal designation for a group of people with a particular goal who are either naturally occurring, legally created, or a combination of both. Members of the company collaborate to accomplish clearly stated objectives. This device is intended for regular use. It should be a multifunctional copier that is ideal for a small business, school, or home office. It also offers seamless connectivity with copiers, laser printers, and fax machines for everything from faxing forms to copying flyers or printing papers.

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Which type of agreement assures that a broker will receive compensation regardless of who procures the buyer

Answers

Exclusive right to sell listings: The agreement pays the agent regardless of whether the seller of the property is the agent or the seller.

Sole agency list: Agents are only paid when they sell properties in this type of arrangement. No commission is charged if only the owner sells the property.

Open list: In this type of contract, the seller has the right to use as many brokers as they wish. However, the seller is not obligated to pay these if the property is sold without the help of an intermediary. Net listing:

This type of agreement may be illegal in your state. Agents can keep whatever they can get their hands on for more than the owner's desired selling price.

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Which of the following is not a reason people choose to depend on others for goods and services?
a. To improve their lives
b. To allow them to enjoy a greater variety of goods and services
c. To consume more of each good without working any more hours
d. To allow people to produce outside their production possibilities frontiers

Answers

The choice d is correct. to let people produce outside the boundaries of their production possibilities.

The Production Possibility Frontier (PPF): What Is It?

A curve on a graph called the production possibility frontier (PPF) depicts the potential quantities of two products that can be produced from the same finite resource. Additionally known as the production possibility curve, the PPF

In economics, PPF also plays a crucial role. It can, for instance, demonstrate that a nation's economy has achieved maximum efficiency.

A company can plot points on a graph to represent the number of products made with variables based on the amounts of resources available when deciding how much of each product to produce. Keeping in mind that resources are limited, resources must be diverted from one product to produce more of it.

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According to Keynes, the level of economic activity is predominantly determined by the level of Multiple Choice O Interest rates. O Unemployment O Aggregate supply
O Aggregate demand

Answers

Aggregate demand. Keynes contended that lengthy periods of high unemployment might result from a lack of general demand.

Consumer confidence frequently suffers during economic downturns from uncertainty, which leads people to cut spending, particularly on luxuries like a home or a car. Businesses may spend less on investments as a result of customers spending less since there is less of a need for their products. As a result, the government is now responsible for raising output. Keynesian economics holds that government intervention is required to control the business cycle, or the ups and downs in economic activity. Numerous public and private economic policies, as well as aggregate demand, have an impact. Inadequate macroeconomic results, such as a decline in consumer spending during a recession, can occasionally be the result of private sector actions.

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In which serving style do the consumers serve themselves the main course food items displayed in utensils in the food area

Answers

In the serving style you described, the consumers are likely being served in a buffet style.

In a buffet, food items such as the main course are typically displayed in serving utensils in a designated food area, and consumers serve themselves by taking the desired amount of food from the utensils.

Buffet-style service is often used in situations where a large number of people are being served, such as in a banquet or a cafeteria.

This style of service allows for greater flexibility and choice for the consumers, as they can choose from a variety of dishes and control the amount of food they take.

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Phillip purchased a single family home 10 years ago for $235,000. Since then, he has accrued $85,455 is deducted depreciation. If Phillip were to sell his property today, what would be his adjusted basis

Answers

If Phillip were to sell his property today, his adjusted basis is $149,545.

In accountancy, depreciation is a time period that refers to 2 elements of the identical idea: first, the actual lower truthful price of an asset, together with the lower fee of manufacturing unit gadget each yr as its miles used and put on, and 2nd, the allocation in accounting statements of the unique fee of the assets to durations wherein the assets are used (depreciation with the matching precept).

Depreciation is for that reason the decrease within the fee of belongings and the technique used to reallocate, or "write down" the value of a tangible asset (including device) over its beneficial existence span. corporations depreciate long-term assets for each accounting and tax purposes.

The lower in the price of the asset impacts the stability sheet of a business or entity, and the method of depreciating the asset, accounting-clever, impacts the internet income, and accordingly the income announcement that they record. normally, the fee is allocated as depreciation cost for a few of the durations wherein the asset is predicted for use.

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Indra is an employee who is required to be on-call at her employer's site once per month for eight hours. She earns a salary of $58,750 per year for a 45-hour workweek and is paid biweekly. What is Indra's gross pay for a pay period that includes on-call time

Answers

Indra's gross pay for a pay period that includes on-call time is  $247.84 + regular pay for the pay period

The term "gross income" is used to describe an individual's total income before any deductions are applied. First, calculate the hourly rate by dividing the annual salary by the number of hours worked per year: $58,750 / (45 hours/week x 52 weeks/year) = $30.96/hour

Then, multiply the hourly rate by the number of on-call hours to determine the pay for the on-call time: $30.96/hour x 8 hours = $247.84

Finally, add the on-call pay to the regular pay for the pay period to calculate the gross pay: $247.84 + regular pay for the pay period = gross pay for the pay period.

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Which factor is important to consider when buying a home air conditioning unit that is supposed to last several years

Answers

When purchasing a house's air conditioning equipment that is expected to last several years, capacity should be taken into account.

What are the most significant considerations when purchasing a home?

Purchasing a home is sometimes one of the most significant purchases you will make in your lifetime. When you locate a home you want to purchase, you should first determine whether you can afford it, then ask your lender for a pre-approval letter, which indicates that the lender feels you are likely approved for a mortgage loan, and only then should you make an offer. If the seller accepts your offer, you will be required to make a down payment and get your mortgage financing authorized by an underwriter and lender.

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Who can grant or deny a petition for the reinstatement of a real estate license that had been revoked?

Answers

It depends on the state.

The agency or organization that issued the real estate license in the first place would be the one to grant or deny a petition for reinstatement of a revoked license. This is typically a state-level regulatory agency or professional organization that oversees the licensing and regulation of real estate agents and brokers.

What is President Roosevelt's stated purpose for issuing this executive order?

Answers

Franklin D. Roosevelt signed this order on February 19, 1942, allowing the transfer of all individuals deemed to pose a threat to the nation's security from the West Coast to locations further inland.

The 32nd president of the United States, Franklin Delano Roosevelt, also referred by his initials FDR, was an American politician and attorney who presided over the country from 1933 until his passing in 1945. He became a key player in world affairs throughout the first half of the 20th century while serving as the head of the Democratic Party and winning a career high four presidential elections. The bulk of the Great Depression was under Roosevelt's guidance as he pursued his New Deal domestic agenda in response to the worst economic catastrophe in American history. He established the New Deal Coalition, which for the middle third of the 20th century in the US characterized modern liberalism. The World War 2, which came to a close just after he past away in office, dominated his third and fourth tenure. He was raised in Hyde Park, New York, where he was a member of the well-known Roosevelt family. He graduated from the Groton School, Harvard College, and Columbia Law School, which he left after passing the bar test to begin his legal career in New York City. He wed Eleanor Roosevelt, his fifth cousin once removed, in 1905. Five of the six children they had and brought to adulthood.

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which of the following is more like laws and regulations a.standard
b.wages
c.prices
d.resources

Answers

Answer:

a. standard

Explanation:

A standard is more like laws and regulations because it defines the level of quality or minimum requirements that is acceptable in a business firm. Thus, all of the activities and operations of the business firm are developed and designed to the set standard.

This ultimately implies that, standard are set by the management or top executive based on certain criteria and it is expected that all the various parts of the business, as well as the people working there are operating at par with it.

For example, the Occupational Safety and Health Administration (OSHA) is a federal agency saddled with the responsibility of assuring and ensuring safe and healthy working conditions for employees by setting and enforcing standards, providing education, trainings and assistance to various organizations.

According to the Occupational Safety and Health Administration (OSHA), safety precautions such as wearing a personal protective equipment e.g masks (respirators), ear plugs, safety boots, gloves, helmet, etc. are very important and essential to be used by workers while working in a hazard prone environment or industries.

The process where responders analyze the problem and assess potential outcomes best describes which of the following tasks

Answers

The correct answer is response ideal( strategy) to achieve a  result to the brazened problems. This process allows askers to break a complex and potentially inviting response down into pieces to prop decision timber.

The thing is to ensure pollee health and safety while mollifying extremities.  A  threat assessment is a written document that records a three-step process:

1 Relating the plant hazards in the plant( s) under your control.

2 Assessing the pitfalls presented by these hazards.

3 Putting control measures in place to reduce the threat of these hazards causing detriment.  

The information must be in jotting, in English, and presented on a shipping paper or affiliated shipping document. The offeror of response ideal( strategy) ensures that the exigency response information is current, correct, and accurate.

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project planning, an activity of a project manager, _____.

Answers

Project management activity: project planning includes identifying project tasks and estimating completion times and costs.

Software Project management involves a wide range of duties, such as task scheduling, project planning, determining the product's scope, cost estimation in several currencies, etc.

The project's needs, the idea behind it, measurable objectives, results, and deliverables, as well as the actions that can and cannot be taken to ensure its success, are all included in the project's scope.

A project manager creates the project roadmap during the project planning phase of project management, which also includes the work breakdown structure, project constraints, project scope, and risk analysis.

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What are the 4 types of assets?

Answers

There have previously been three main asset classes, however today's financial experts widely concur that there are four major asset classes:

Equities (stocks)

debt and fixed income (bonds)

Cash equivalents and money markets.

Real estate and material possessions.

Which financial asset classes are the safest?

Financial assets, sometimes referred to as financial instruments or securities, are an example of intangible assets. They are widely used as a means of financing the purchase of moveable assets like machinery and real estate. Some of the safe asset categories that have traditionally been utilized often include real estate, cash, Treasury bills, money market funds, and mutual funds that invest in U.S. Treasury securities. Risk-free investments, such as national debt instruments issued by industrialized country governments, are considered the safest investments.

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Suppose that U.S. debt is $7 trillion dollars at the beginning of the fiscal year. During thefiscal year, the government spending and government transfers are $2 trillion and taxrevenues equal $1.5 trillion. At the end of the fiscal year, the debt is:

Answers

At the end of the fiscal year, the debt is $7.5 trillion at beginning debt of  $7 trillion dollars of the fiscal year.

A fiscal year (FY), usually referred to as a budget year, is the time period that the government and businesses utilise for accounting to create their yearly financial accounts and reports. Depending on how you count it, a fiscal year might last 12 months or 52 weeks and not always on December 31. The term "calendar year" refers to the time frame that runs from January 1 to December 31. Government accounting, which differs between nations, and budgetary considerations both employ the fiscal year. Furthermore, corporations and other organisations utilise it for financial reporting. Generally, the reporting period does not coincide with the calendar year, although laws in many countries mandate that yearly financial reports be written and publicised.

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If a borrower wishes to borrow 90% of the $250,000 purchase price, which of the following equals one discount point?
A) $3,000
B) $2,500
C) $2,250
D) $2,000

Answers

If a borrower wishes to borrow 90% of the $250,000 purchase price, then the $2,250 equals one discount point.

Given,

Borrower wishes to borrow = 90%

Purchase price = $250,000

So, one discount point is calculated below-

A discount point is considered to be 1% of the loan amount.

So, however in this case:

= $250,000 − $25,000 (10% down payment)

= $225,000 (loan amount)

= $225,000 × 1% = $2,250

However, the borrower tends to represents, covenants, and warrants that it currently has no interest and shall not acquire any interest, which can be direct or indirect. Thus, which would conflict in any manner or degree with the performance.

Hence, option C is correct.

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Governance is a process whereby senior management exerts strategic control over business functions through what

Answers

is the process through which senior management strategically controls business operations through policies, objectives, authority delegation, and monitoring.

What function does governance serve in a company?

You may always operate with in best interest of the organization with the aid of good governance. Most specifically, it can boost your company's performance, make it more reliable and effective, and open up new possibilities. It can lower hazards and promote quicker, safer growth.

What goals does government seek to achieve?

Transparency, accountability to investors and the community, strong corporate trusteeship, and the protection of employees' welfare are all characteristics of good corporate governance. Within the constraints of the corporate governance structure, it aids management in making creative decisions for the business.

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What problems can be solved by algorithmic?

Answers

Any form of problem, be it mathematical, logical, or complicated, can be addressed by an algorithm.

What issues are algorithms unable to resolve?An algorithm cannot address either of two types of issues. Unsolvable issues. Theoretically, no algorithm could possibly address these issues. The halting problem is an intractable decision problem (with a yes/no response).Any form of problem, be it mathematical, logical, or complicated, can be addressed by an algorithm. Example: Depth-first search, salesmen on the road, sorting formulas, etc. However, the algorithm would arrive at a finite answer after a number of steps before coming to an end.There are several recognised to be formally undecidable issues, therefore there is no technique that can fully resolve them.

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Complete the following decision box for this game. American's profits are on the left in each situation, Braniff's on the right.

Answers

Nash equilibrium is the state of a game when the players conclude the strategies they find salutary irrespective of the strategy chosen by their challengers.

It's the strategy chosen where both the players have their dominant strategies. The reason is that if both companies set the price as$ 600, they both earn medium gains compared to the situation when they both set the price as$ 300 and earn veritably low gains.

                                        Braniff's Decision

                                              (Low Price)                  High Price

America's Decision  LP         300, 300                     600, 300

                                 HP         600, 300                     600, 600

The Nash equilibrium is a decision-making theorem within a game proposition that states a player can achieve the asked outgrowth by not swinging from their original strategy. In the Nash equilibrium, each player's strategy is optimal when considering the opinions of other players.

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In which of the following will equilibrium prices will spontaneously establish themselves, persisting until the forces of supply and demand change

Answers

The competitive market is the one wherein the equilibrium prices tend to spontaneously establish themselves, while also persisting until the forces of supply and demand are affected by the changes.

A competitive market can be easily interpreted as a type of market structure, which includes a number of buyers as well as sellers without many restrictions being imposed for their entry and exit from the market. Due to equal forces of demand and supply, there is usually an equilibrium in the market prices in such an economy where competition exists.

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Complete question

In which market structures will the equilibrium prices will spontaneously establish themselves, persisting until the forces of supply and demand change?

Which of the following statements concerning a monopolistically competitive industry is correct? Multiple Choice If there are short-run losses, firms will leave the industry and the demand curves of the remaining firms will shift to the right. If there are short-run economic profits, firms will enter the industry and the demand curves of existing firms will shift to the right. If there are short-run losses, firms will leave the industry and the demand curves of the remaining firms will shift to the left. If there are short-run economic profits, firms will leave the industry and the demand curves of the remaining firms will shift to the right.

Answers

Answer:

If there are short-run losses, firms will leave the industry and the demand curves of the remaining firms will shift to the right.

Explanation:

Monopolistic competition can be defined as an imperfect competition where many producers or organizations sell differentiated products that are not perfect substitutes. Examples of firms or organizations engaging in a monopolistic competition are restaurants, shoes, clothing lines etc.

Generally, a monopolistic competitive market is characterized by the presence of large numbers of firm (producers) and a very low entry barrier.

Hence, in a monopolistic competition, firms have a degree of control over price, make independent decisions and can freely enter or exit the market in the long-run. Therefore, these firms combine elements of both monopoly and competition.

When a monopolistically competitive firm is in long-run equilibrium marginal revenue is equal to marginal cost (MR = MC) . This ultimately implies that in the long-run, firms engaging in monopolistic competitive market are often going to manufacture the quantity of goods where the marginal cost (MC) curve intersect with the marginal revenue (MR). Also, the price set would be greater than the minimum average total cost (ATC).

Thus, a monopolistic competitive producer has a highly elastic demand curve and firms would eventually break even in the long-run.

Hence, the true or correct statement concerning a monopolistically competitive industry is that, if there are short-run losses, firms will leave the industry and the demand curves of the remaining firms will shift to the right i.e there would be an increase in the demand for their products.

In 2010, Freeze Company had credit sales of $900,000 and granted sales discounts of $18,000. On January 1, 2010, Allowance for Doubtful Accounts had a credit balance of $22,500. During 2010, $37,500 of uncollectible accounts receivable were written off. Past experience indicates that 3% of net credit sales become uncollectible. What should be the adjusted balance of Allowance for Doubtful Accounts at December 31, 2010

Answers

Adjusted balance in Allowance accounts = $ 22500 beg credit balance - $ 37500 written off + ($900000 credit sale x 3%)= 22500 – 37500 + 27000

= $ 12,000.

Credit is the trust that permits one party to lend money or resources to another party, with the second party promising to repay or return those resources at a later period rather than immediately repaying the first party. In other words, credit is a technique of formalising, legally enforcing, and extending reciprocity to a broad number of unconnected persons.

The resources offered may be monetary or in the form of products or services. Credit includes any type of deferred payment. A creditor, also known as a lender, extends credit to a debtor, also known as a borrower.

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Pat recently moved to San Diego from Nevada, where he has an inactive broker license. He has passed the California broker license exam, but has not yet received his license. Pat found a buyer for a house in the neighborhood that was listed for sale. Escrow is scheduled to close in two days and Pat is looking forward to his commission check. Pat receives a call from the escrow officer telling him he will not receive a commission check. Which statement is correct?

Answers

The correct statement is: Pat is not a licensed California real estate broker at the time the compensation was

Who are Real estate brokers?

A licensed professional who assists in the purchase, sale, and transfer of real estate is known as a real estate broker. They help clients with paperwork, making decisions, and complying with legal requirements by utilizing their expertise and understanding of the real estate industry.

There are three kinds of brokers:

Internet brokers are a brand-new type of digital investment that connects with customers online.Discount agents A stockbroker who executes buy and sell orders at a lower commission rate is known as a discount broker.Brokers with all services.

the distinction between a broker and an agent:

Insurance companies are represented by agents. Buyers are represented by brokers. The insurance companies that agents represent sell policies. Brokers look for insurance policies from various companies.

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Think about all the jobs that you encounter on a daily basis. How many different types of career paths intersect with your life every day? List as many different jobs and career paths that you see on a daily basis. Which ones, if any, interest you and why?

Answers

Answer:

I can provide you with a list of common jobs that may intersect with an individual's daily life:

Retail salesperson

Customer service representative

Delivery driver

Food service worker (e.g. server, chef, bartender)

Receptionist

Teacher

Health care worker (e.g. nurse, doctor, therapist)

Construction worker

Police officer

Office worker (e.g. administrative assistant, project manager)

I can provide information about different careers and what they entail. If you have specific questions about a particular career or job, I would be happy to help.

Explanation:

A group of similar products with slight variations in the marketing mix to satisfy different needs in a market is a(n): Answer options extended product brand product assortment product line

Answers

A group of similar products with slight variations in the marketing mix to satisfy different needs in a market is a  product assortment. A product line is a collection of related goods that have minor changes to meet the various needs of customers.

By meeting the needs of a varied target market, the product line hopes to generate the most sales feasible. A product is anything that can be supplied to a market in order to satiate a customer's need or desire. In marketing, a product is an item, system, or service that is made accessible for consumer usage in response to consumer demand. Consumption is the act of using products and services provided by producers and distributors to fulfil one's demands.

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Santa Fe Retailing purchased merchandise "as is" (with no returns) from Mesa Wholesalers with credit terms of 2/10. N/60 and an invoice price of $28. 300. The merchandise had cost Mesa $19. 301. Assume that both buyer and seller use a perpetual inventory system and the gross method. Prepare entries that the buyer records for the (a) purchase, (b) cash payment within the discount period, and (c) cash payment after the discount period. Prepare entries that the seller records for the (a) sale, (b) cash collection within the discount period, and (c) cash collection after the discount period

Answers

Entries that the buyer records for the purchase:

Debit Accounts Payable (Mesa Wholesalers) for $28,300

Credit Inventory for $28,300

How do you prepare the other entries?

Entries that the buyer records for the cash payment within the discount period:

Debit Cash for $27,724 (28,300 x 0.98)

Credit Accounts Payable (Mesa Wholesalers) for $27,724

Entries that the buyer records for the cash payment after the discount period:

Debit Cash for $28,300

Credit Accounts Payable (Mesa Wholesalers) for $28,300

Entries that the seller records for the sale:

Debit Sales for $28,300

Credit Accounts Receivable (Santa Fe Retailing) for $28,300

Entries that the seller records for the cash collection within the discount period:

Debit Accounts Receivable (Santa Fe Retailing) for $27,724

Credit Cash for $27,724

Entries that the seller records for the cash collection after the discount period:

Debit Accounts Receivable (Santa Fe Retailing) for $28,300

Credit Cash for $28,300

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