Read each of the following transactions. Determine the accounts to be debited and credited. A) Sold merchandise for $500 on credit plus sales tax of $42.B) Collected $3,400 from credit customers on account.C) Sold merchandise for $3,500 in cash plus sales tax of $175. There was a cash overage of $25.
What will be an ideal response?
A) Debit Accounts Receivable; credit Sales and Sales Tax Payable
B) Debit Cash; credit Accounts Receivable
C) Debit Cash; credit Sales, Sales Tax Payable and Cash Short or Over
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A firm can produce at a lower cost than its competitors by ______.
A. achieving economies of scale B. increasing the cost of raw materials and labor C. using cheap raw materials and inputs D. cutting corners in production
Winkler Company borrows $85,000 and pledges its receivables as security. The journal entry to record this transaction would be:
A. Debit Cash of $85,000 and credit Accounts Payable $85,000. B. Debit Cash of $85,000 and credit Accounts Receivable $85,000. C. Debit Note Receivable $85,000 and credit Accounts Receivable $85,000. D. Debit Accounts Receivable $85,000 and credit Notes Payable $85,000. E. Debit Cash $85,000 and credit Notes Payable $85,000.
A German steel maker has sold steel to American firms that it cannot sell in Germany, due to low demand, at a vastly reduced price. This practice is known as:
a. dumping b. counter bargaining c. countertrade d. a strategic alliance e. importing
On July 17, 2018, Kevin places in service a used automobile that cost $25,000. The car is used 80% for business and 20% for personal use. In 2019, he used the automobile 40% for business and 60% for personal use. Determine the cost recovery recapture for 2019.
A. $0 B. $528 C. $2,000 D. $2,500