Short definition for business cycle ?

The Giles Agency offers a 12% trade discount when providing advertising services of $1,000 or more to its customers. Audrey’s An

frozen [14]

Answer:

Please refer the journal entries below

Explanation:

Trade Discount:

There is no accounting entry for the trade discount, trade discount is simply deducted from the total amount and the entry is passed after incorporating the trade discount

1) Audrey’s Antiques

Since Audrey’s Antiques have taken the services amounting more than $1,000, they are eligible for the trade discount of 12% i.e. ( 12% of $1,900) = $228, hence Income will be recorded at ($1,900 - $228) = $ 1,672

Advertising Fee Receivable Debit $ 1,672

Advertising Fee Income Credit $ 1,672

2) Michael’s Motors

Since Michael’s Motors have taken the services amounting less than $1,000, they are not eligible for the trade discount of 12%

Advertising Fee Receivable Debit $ 540

Advertising Fee Income Credit $ 540

3 0

2 years ago

atkins company collected $1,750 as payment for the amount owed by a customer from services provided the prior month on credit. h

Svetradugi [14.3K]

The effect of the transaction by Atkins Company of collecting payment for an amount owed by a customer is One asset would increase $1,750 and a different asset would decrease $1,750, causing no effect.

<h3>How does an increase and decrease in assets affect the accounting equation?</h3>

The fact that a customer owed Atkins Company means that the customer was an accounts receivable which is an asset account.

The cash that Atkins Company collected is also an asset. So, the transaction simply led to one asset(accounts receivable) being reduced and the other asset(cash) being increased. The amount is the same so there would be no effect.

Find out more on changes to the accounting equation at brainly.com/question/27905497

#SPJ1

6 0

1 year ago

Solstice Company determines on October 1 that it cannot collect $60,000 of its accounts receivable from its customer, P. Moore.

djverab [1.8K]

Answer and Explanation:

The journal entry is shown below:

Bad debts expense Dr $60,000

To Accounts receivable $60,000

(Being the written off amount is recorded)

For recording this we debited the bad debt expense as it increased the expenses and credited the account receivable as it reduced the assets

So for correcting posting and recording we passed accurate entry

4 0

2 years ago

Seven years ago, Goodwynn & Wolf Incorporated sold a 20-year bond issue with a 14% annual coupon rate and a 9% call premium.

iogann1982 [59]

Answer:

14.82%

Explanation:

initial investment = $1,000

annual coupon = $140 (7 coupons received)

selling price = $1,090

the easiest way to determine the realized rate of return is to use a financial calculator or excel spreadsheet, and calculate the IRR: 14.82%

the cash flows are:

-1000
140
140
140
140
140
140
1230

5 0

2 years ago

for a monopolist: a. price equals average total cost. b. price is above marginal revenue. c. marginal revenue equals zero. d. ma

strojnjashka [21]

For a monopolist b. price is above marginal revenue.

<h3>What Is Marginal Revenue? </h3>

Marginal revenue can be regarded as increase in revenue which is been gotten from the sale of one additional unit of output.

As a monopolist that is the the only seller in the market, then their marginal revenue is usually above price because they don't have a competitor that is close enough.