The advantages of primarily cash pay are the following:
1. It motivates the owner to expand the business.
2. The desirable increase in the level of services.
The disadvantages are the following:
1. There was a little incentive to the owner.
2. There was potential to lose sight to the customers.
Answer:
6.53%
Explanation:
For computing the after cost of debt we need to use the RATE formula i.e to be shown in attached spreadsheet. Kindly find it below:
Given that,
Present value = $1,050.76
Future value or Face value = $1,000
PMT = 1,000 × 10% = $100
NPER = 5 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after applying this above formula
1. The pretax cost of debt is 8.70
2. And, the after tax cost of debt would be
= Pretax cost of debt × ( 1 - tax rate)
= 8.70% × ( 1 - 0.25)
= 6.53%
Answer:
July 1, 2020
Debit : Accounts Receivable $69,000
Credit : Sales $69,000
July 9, 2020
Debit : Cash $62,100
Debit : Discount allowed $1,380
Credit : Accounts Receivable $69,000
Explanation:
Note : Remove the discount from final payment.
The required journal entries for Swifty Co have been prepared above.
Answer:
Number of salads sold in that day = 93
Explanation:
Using algebra we have,
Let salad = X
Drinks = Y
Now Total units = 209
That means
X + Y = 209
Y = 209 - X
Also
6.5X + 2Y = 836.50
Putting above value of Y in this equation we have
6.5 X + 2(209 - X) = 836.50
6.5X + 418 - 2X = 836.50
4.5X = 836.5 - 418 = 418.5
X = 418.5/4.5 = 93
Therefore X = Salads = 93 in units
Number of salads sold in a day = 93 units