On January 1, 2017, Fryer Company enters into a contract to supply 600 pastry frying machines to a regional donut retailer. The machines will be delivered at a rate of 25 machines per month over 2 years at a transaction price of $1,000 per machine. The salesperson received a $36,000 sales commission on the date the contract was signed. The journal entry to record the transaction on January 1 will
include a
A) debit Prepaid Sales Commissions for $36,000.
B) debit Sales Commission Expense for $36,000.
C) credit Sales Revenue $600,000.
D) credit Sales Revenue $564,000.
A
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Which of the following sections of the statement of cash flows include activities that create revenue and expenses of the business?
A) the investing activities section B) the financing activities section C) the operating activities section D) the non-cash investing and financing section
Roe Corporation owns 2,000 shares of WRJ Corporation stock. WRJ Corporation has 25,000 shares of stock outstanding. WRJ paid $4 per share in cash dividends to its stockholders. Roe's entry to record the receipt of these dividends is:
A. Debit Unrealized Gain-Equity, $8,000; credit Cash, $8,000. B. Debit Cash, $8,000; credit Dividend Revenue, $8,000. C. Debit Cash, $8,000; credit Interest Revenue, $8,000. D. Debt Long-Term Investment, $8,000; credit Cash, $8,000. E. Debit Cash, $8,000; credit Long-Term Investments, $8,000.
When evaluating the six-step decision making process, what occurs during the solution selection step?
A. Definition of the problem as clearly and precisely as possible. B. Details of every solution possible including ideas that seem farfetched. C. The process will begin again if the decisions made were incorrect. D. The solution that best solves the problem is selected.
A continuous review system is also known as a(n) ______.
a. fixed order quantity system b. annual inventory system c. periodic review system d. fixed order interval system