Two certificates of deposit pay interest at rates that differ by 3%. Money invested for one year in the first CD earns $210 interest. The same principal invested in the other CD earns $315. Find the two rates of interest (in percent).
Answers
The two rates of interest are 6% and 9%. The interest rate of the first CD (in percent), and be the interest rate of the second CD (in percent).
Let x be the interest rate of the first CD (in percent), and y be the interest rate of the second CD (in percent). We are given that the rates differ by 3%, so we can write the first equation as:
1) y = x + 3
We also know that the first CD earns $210 in interest, and the second CD earns $315 in interest. Since both CDs have the same principal, we can express this as:
2) 210 = P * x * (1/100)
3) 315 = P * y * (1/100)
Now, we can eliminate the principal P by dividing equation 3 by equation 2:
(315/210) = (P * y * (1/100)) / (P * x * (1/100))
Simplifying this equation gives:
1.5 = y/x
Now we can substitute equation 1 into this equation:
1.5 = (x + 3)/x
Solving for x:
1.5x = x + 3
0.5x = 3
x = 6
Now, we can find y by substituting the value of x into equation 1:
y = 6 + 3
y = 9
The interest rates are 6% and 9%.
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Related Questions
Process-Oriented Layout Part 2 of 8 O Points: 0 of 1 You have just been hired as the director of operations for Reid Chocolates, a purveyor of exceptionally fine candies. Reid Chocolates has two kitchen layouts under consideration for its recipe making and testing department. The strategy is to provide the best kitchen layout possible so that food scientist can devote their time and energy to product improvement, not wasted effort in the kitchen. You have been asked to evaluate these two kitchen layouts and to prepare a recommendation for your boss, Mr. Reid, so that he can proceed to place the contract for building the kitchens D Figure 1. Number of trips between work centers Counter Sink Storage Stove To: Refrigerator (1) From: (2) (3) (4) (5) Refrigerator Counter Sink 9 7 3 0 3 3 D 0 5 Storage Stove 0 8 4 11 The first kitchen layout is shown in Figure 2 below. The walking distance between the areas is in feet. For example, the distance from area 11o area 2 is 4 feet, arca 1 to area 3 is 8 feet. Figure 2. Kitchen Layout 01 Refrigerator Counter (1) (2) Storage Sink (3) Stove (5) For layout number one, the cumulative "loadx distance" or "movement cost" - 658 feet (enter your response as a whole number). The second kitchen layout is shown in Figure 3 below. The walking distance between the areas is in feet. For example, the distance from area 1 to area 2 is 7 feet area 1 to area 5 is 14 feel. Figure 3. Kitchen Layout #2 Sink Storage (4) Refrig 1 Counter 2 For layoutnumber two, the cumulative "loadx distance" or "movement cost" = feet (enter your response as a whole number). 12 12 13 Stove 6 0 5 4 A 0
Answers
The cumulative "load x distance" for layout number one is 202 feet, while for layout number two, it is 86 feet.
How do the cumulative "load x distance" values compare for the two kitchen layouts?To calculate the cumulative "load x distance" or "movement cost" for the two kitchen layouts, we need to determine the distance between each work center and the number of trips between them.
Let's calculate the cumulative "load x distance" for layout number one:
Counter to Sink: 9 trips x 8 feet = 72 feetCounter to Storage: 7 trips x 7 feet = 49 feetCounter to Stove: 3 trips x 6 feet = 18 feetCounter to Refrigerator: 3 trips x 4 feet = 12 feetSink to Storage: 3 trips x 12 feet = 36 feetSink to Stove: 3 trips x 5 feet = 15 feetThe cumulative "load x distance" for layout number one is 72 + 49 + 18 + 12 + 36 + 15 = 202 feetNow, let's calculate the cumulative "load x distance" for layout number two:
Counter to Sink: 0 trips (no distance)Counter to Storage: 5 trips x 6 feet = 30 feetCounter to Stove: 0 trips (no distance)Counter to Refrigerator: 0 trips (no distance)Sink to Storage: 8 trips x 5 feet = 40 feetSink to Stove: 4 trips x 4 feet = 16 feetThe cumulative "load x distance" for layout number two is:0 + 30 + 0 + 0 + 40 + 16 = 86 feet
Therefore, the cumulative "load x distance" for layout number one is 202 feet, and for layout number two, it is 86 feet.
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Officer Desai has been called to the scene where a recent model dark blue four-door BMW automobile is sitting on the shoulder of the road, unoccupied, with apparently recent damage to the front bumper of the vehicle and shell casings on the driver's seat. There is nobody around the car. When the officer's sergeant arrives they discuss what to do about the car. If this vehicle matches the description of a vehicle stolen that morning from a bank parking lot, they:
Answers
Answer:
Explanation:
In this type of situation, the Sergeant should report the car as found, then look for any evidence that may be of importance in connecting the dots as to what happened. This evidence may include the shell casings to know what type of gun was fired, or even any documentation or personal belongings left by the individuals who were driving the car. All of this information can be vital to solving what exactly happened.
1. Waves are created when a source of energy causes a _____.
Answers
Answer:
Waves are created when a source of energy causes a medium to vibrate. A vibration is a repeated back-and-forth or up-and-down motion. This motion is the source of the wave. Waves are classified according to how they move.
Explanation:
most demand curves are relatively elastic in the upper-left portion because the original price group of answer choices and quantity from which the percentage changes in price and quantity are calculated are both large. and quantity from which the percentage changes in price and quantity are calculated are both small. from which the percentage price change is calculated is large and the original quantity from which the percentage change in quantity is calculated is small. from which the percentage price change is calculated is small and the original quantity from which the percentage change in quantity is calculated is large.
Answers
Most demand curves are relatively elastic in the upper-left portion because the original price from which the percentage change in quantity is calculated is large.
Most demand curves means that it will be more change in the quantity demanded of a good and service than in the price of that good and service.
Perfectly inelastic demand means that regardless of price, the quantity demanded of a good and services remains constant.
The demanded curve that represents in the most elastic is horizontal from which the percentage changes in price and quantity.
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is it cool when you have friends at school
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Answer:
Well yes I would suppose…unless you’re the loner type. I don’t have any friends so I wouldn’t really know—
._.
Answer:
yes, i guess you could say that its cool to have friends at school. but it is important to make sure that they dont get in the way of schoolwork or influence you to do anything bad
Explanation:
5.47 when completing the audit of internal controls for a public company, the pcaob requires auditors to audit internal controls over a. operations. b. compliance with regulations. c. financial reporting. d. all of the above.
Answers
When completing the audit of internal controls for a public company, the PCAOB requires auditors to audit internal controls over financial reporting.
What are internal controls?
Internal controls are a system of policies and procedures that a corporation employs to achieve two main objectives: safeguarding the company's assets and ensuring the accuracy of its financial information.
Internal control has three main goals, including safeguarding assets, ensuring financial reporting, and complying with laws and regulations.
When completing the audit of internal controls for a public company, the PCAOB requires auditors to audit internal controls over financial reporting.
What is the PCAOB?
The PCAOB, or Public Company Accounting Oversight Board, is a private-sector, nonprofit organization that regulates and monitors the auditing of public companies in the United States.
The board was established by the Sarbanes-Oxley Act of 2002 to oversee the audits of public companies and related matters. The PCAOB's mission is to promote audit quality by overseeing audit firms, performing inspections, and enforcing compliance with relevant laws, regulations, and professional standards.
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3. Describe two real or made up situations in the workplace when you would need to use
speaking skills. (1-2 sentences. 2.0 points)
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In order to reduce conflict, speaking skill, is the skill that helps to settle a disagreement or conflict between two parties, or amount group of people.
Why speaking skills is essential in workplace?
No company has stated in his vision or mission, to keep a zero conflict among staff, because it is believed that every workers and staff of the company is disciplined and should focus on why the company has hired him or her.
But on the other hand, conflict among workers in a company has been on increase. Because people differs so their ideology differs too. Conflict may not only be when a worker yells at a co worker, it can also be an argument between workers.
It is difficult to find a company made of more than 10 workers with out conflict among co workers, the conflict could be envy or side talks.
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This will give you 100 points so please answer fast and make it a good answer. Choose ONE of the organization structures from above: functional, divisional, or matrix.
Create an organizational chart for the internal organization of a business of your choice and assign the appropriate task to be performed to each department or individual.
Feel free to use the Internet to search for examples to use as a guide when creating your organizational chart. Be sure to include the URL links you used as resources in the space below.
Now include the following:
Identify your business or what your business sells.
State which type of organization structure you chose and why you chose that structure.
List the task(s) for each job in your organization chart.
Answers
The question tests your knowledge of Organograms and Organizational Structures. The structure used in this example is a functional organizational structure.
What is a functional organizational structure?Organizational Structures are the way businesses and organizations are organized.
Functional organizational structures are arranged or organized according to the functions that are available in the various departments of such an organization.
The organization structure attached is for revenue service. This structure is best for this kind of organization because it deals mostly with professional services that are intangible.
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Answer:
Explanation:
The question tests your knowledge of Organograms and Organizational Structures. The structure used in this example is a functional organizational structure.
What is a functional organizational structure?
Organizational Structures are the way businesses and organizations are organized.
Functional organizational structures are arranged or organized according to the functions that are available in the various departments of such an organization.
The organization structure attached is for revenue service. This structure is best for this kind of organization because it deals mostly with professional services that are intangible.
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The question tests your knowledge of Organograms and Organizational Structures - 1
The last line in a business letter is the _______.
Help please
Answers
Answer:
Salutation
Explanation:
Select the false statement about a budget
A budget balances net income and expenses.
A budget provides input to financial planning.
A budget is an emergency fund.
A budget should be reviewed regularly.
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a machine, acquired for a cash cost of $21,875, is being depreciated on a straight-line basis of $2,500 per year. the residual value was estimated to be 20% of cost. the estimated useful life is:
Answers
the residual value was estimated to be 20% of cost. the estimated useful life is 2500= 21875-4375/x = 2500= 17500/x , x = 7
Thus, estimated useful life is 7 years.
What is residual value?
One of the components of a lease calculus or operation is residual value. It expresses the absolute future worth of a thing in monetary terms, and it is occasionally expressed as a percentage of the original purchase price.
An automobile is sold today for the advertised price of $20,000. Its value is legally set at $10,000 or 50% after 36 months of use and 50,000 kilometers. The credited amount, to which interest is applied, is therefore equal to $20,000 in current value less $10,000 in present value.
Contractually, residual values are handled either through closed contracts or through open contracts.
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Scholarships awarded for high GPAs or test scores are based on _____.
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Answer: Merit-based...
Identify some of the reasons why Congress passed the Sarbanes-Oxley Act.
A) To decrease management's responsibility of the accounting reports issued by the company
B) To help stop financial abuses at companies that issue their stock to the public
C) To require public companies to document and verify their internal controls.
Answers
Answer: C) To require public companies to document and verify their internal controls.
Explanation:
The Sarbanes-Oxley Act was passed in the year 2002 and represented an unprecedented increase in influence of the Government on the activities of public companies.
Passed in the aftermath of several financial scandals such as the Enron and Worldcom scandals, SOX as it is usually referred to, aimed to make companies more accountable for their actions by amongst other things, requiring that they document and verify their internal controls and made it the responsibility of senior management to ensure that it was done.
Plz help me I’ll make u the brainliest ( I promise)
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Your house is for sale for $210,000. A realtor will charge you a 3% sales commission. If you choose a "sale by owner" option bypassing a realtor, you will pay no commission, but you will have to pay an attorney an average of $950 at your closing. What will you save by choosing the "sale by owner" option?
Answers
Answer:
5350
Explanation:
If your house is for sale for $210,000. What you will save by choosing the "sale by owner" option is $5350.
What is Sales?Sales can be defined as the way of selling a product in exchange for cash.
Using this formula
Amount saved=(Selling price×Sales commission)- Closing price
Let plug in the formula
Amount saved=($210,000×3%)-$950
Amount saved=$6,300-$950
Amount saved=$5,350
Therefore If your house is for sale for $210,000. What you will save by choosing the "sale by owner" option is $5350.
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Ketchum & Lushene Hardware sells 100 hammers daily. The supplier takes two days
to deliver more hammers.
At what quantity should the inventory manager place his/her next order?
Answers
Answer:
He should reorder when he is left with 200 hammers.
Explanation:
Reorder point is the trigger which informs the businessmen to order the inventory when the stock is used.
Reorder point = Safety Stock + (Average daily usage of units * Average lead time in days )
Reorder Point = 0 + (100 hammers * 2 days)
Reorder Point = 200
What store do you think has this?
Winner receives: 20 points
Answers
What is a major goal of ecotourism
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Answer:
One of the main goals of ecotourism is to increase the awareness tourists have about the social conditions surrounding a travel destination. Such conditions as poverty are often hidden from tourists. Ecotourism aims to expose tourists to the realities of social and economic climates in an area.
Hope this helped! Good luck!! :)
Explanation:
Answer:
a major goal is to create experiences that benefit everyone equally, not just the tourist and stakeholders.
For the month of September, Florida, Inc. , incurs a direct materials cost of $12,000 for 7,500 gallons of strawberry lemonade produced in its Mixing Department. It also incurs conversion costs of $6,000 with 80% completed. If the conversion cost per equivalent unit was $1. 15 per gallon in August, what is the difference in the conversion cost per equivalent unit between the two months?
Answers
The difference in the conversion cost per equivalent unit between August and September for Florida, Inc. is $0.05 per gallon.
To calculate the conversion cost per equivalent unit in September, we need to determine the equivalent units of production for both direct materials and conversion costs. The equivalent units for direct materials is simply the number of gallons produced, which in this case is 7,500.
For conversion costs, we need to calculate the equivalent units of production for both the completed and in-process units. In September, the completed units were 6,000 gallons (80% of 7,500), while the in-process units were 1,500 gallons (20% of 7,500). The total equivalent units of production for conversion costs is 7,500 gallons.
To calculate the conversion cost per equivalent unit for September, we divide the total conversion costs ($6,000) by the total equivalent units of production (7,500 gallons). This gives us a conversion cost per equivalent unit of $0.80 per gallon.
To calculate the difference in conversion cost per equivalent unit between August and September, we subtract the August conversion cost per equivalent unit ($1.15 per gallon) from the September conversion cost per equivalent unit ($0.80 per gallon), which gives us a difference of $0.35 per gallon.
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You learned about the various types of information systems that revolve around the different data, knowledge, information, and decision-making activities at different levels in the organization. In this activity, identify and explain any three types of information systems related to specific functional areas of business that this lesson hasn’t mentioned.
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An information system is a coordinated group of parts used to gather, store, and process data as well as to deliver knowledge, information, and digital goods. Information systems include the following, decision support system, transaction processing system, management information system.
Types of information systems includeDecision support system: A decision support system is an information system that analyzes business data and other information relevant to the firm.
Transaction processing system: The process of collecting, modifying, and retrieving transactions is automated by the transaction processing system. This type of information system's particular characteristic is that it improves the efficiency, dependability, and consistency of commercial transactions.
Management information system: The management information system helps managers. such as measuring and analyzing business performance, making choices, creating a business plan, and establishing processes. By examining the roles and duties, it also gives managers feedback.
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what are 3 ways managers are faced with ethical dilemmas?
Answers
Answer:
Answer:
One of them is whistle blowing and another is selling.
I only know 2 ways!
-Thanks
Managers are faced with ethical dilemmas, and three ways of this are: Personal ethics, Company culture, and Legalities.
Personal ethics:These ethical dilemmas arise from the moral principles and standards that a manager adheres to, and they can be seen in the company's daily activities. For instance, a manager may struggle with a dilemma of whether to report a mistake made by an employee that resulted in a minor harm to the business or keep quiet and avoid causing harm to the employee's reputation.
Company culture:Company culture is the way that a company behaves, thinks, and makes decisions. It affects all aspects of a company, including how it operates, what it values, and how it treats employees. For instance, a company that values profit over employee welfare may force a manager to lay off employees or cut corners on safety and health to maximize profits.
Legalities:Legal issues are common ethical dilemmas faced by managers, and they arise from laws and regulations governing the company's operations. For example, a company's managers may be required to report any suspected fraud committed by employees to the authorities. Failure to do so can result in legal action against the company, which can result in significant financial penalties.
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What are the different levels of a product? Explain with a suitable
example
Explain the decisions taken for an individual product.
Discuss the characteristics of a service that different"
Answers
Different levels of a product are discussed below: Core benefit level: This is the fundamental level of a product. It involves identifying the core benefit that consumers seek.
Example: The core benefit of purchasing a car is mobility. Basic product level: This involves creating a product to deliver the core benefits.
Augmented product level: This level involves further adding to the expected product by offering additional features and benefits.
Branding: A company must decide on the branding for its product, including its name, packaging, and logo. Packaging and labeling: It is essential to design packaging and labeling that effectively communicates the product’s features, quality, and value to the target audience.
Pricing: Pricing decisions must be made based on an understanding of the product’s value and the target audience’s willingness to pay.
Distribution: The product must be made available to the target audience through appropriate channels of distribution. Promotion:
Characteristics of a service that differentiate it from a product are explained below: Intangibility: Services are intangible as they cannot be seen, touched, or felt. They are activities performed by people that result in benefits to the service buyer. Inseparability: Services are inseparable, which means they cannot be separated from their service providers. Service providers play an essential role in delivering the service.
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distribution specialists that provide incentive travel offered to employees or distributors as a reward for their efforts are called:
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"Incentive travel planners" or "incentive travel coordinators" are distribution professionals who give incentive travel as a reward for the actions of workers or distributors.
Incentive travel planners are experts that collaborate with businesses to design and implement incentive travel programs to inspire and reward high-performing employees or distributors.
Incentive travel is a sort of motivating award that often consists of providing an all-expenses-paid vacation to a desired location to acknowledge and incentivize workers or distributors who reach particular goals or targets. Incentive travel planners create programs that are personalized to the client's and participants' needs, taking into account aspects such as budget, location preferences, and intended outcomes.
In addition to program design, incentive travel planners manage logistics like as travel arrangements, lodging, and on-site activities. The goal is to provide participants with a one-of-a-kind and unforgettable experience that will motivate them to continue working hard and meeting the company's goals.
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9. The person who smokes cigarettes cannot possibly be thinking in terms of costs and benefits because it has been proven that cigarette smoking increases one's chances of getting lung cancer. Do you agree or disagree with the part of the statement that reads "the person who smokes cigarettes cannot possibly be thinking in terms of costs and benefits"? Explain your answer.
Answers
Explanation:
I disagree with the part of the statement that says "those who smoke cannot be thinking about costs and benefits" because although the phrase is correct in the logical and scientific context about the harm of smoking, it is also correct to state that the statement is liable to different interpretations according to each individual.
Therefore, I do not agree with this statement due to the fact that each person has a different concept of benefits and costs, for an individual to smoke, even though it is harmful to health, it is compensable for the sensation of pleasure it causes.
the johnson family owns two funeral homes. one is in the older part of the city and was started by their grandfather 60 years ago. the other is only 5 years old and located in one of the newer suburbs. they are both incorporated under the same corporation document and all of the stock is owned by the members of the same family. must they use the same gpl with the same prices ate both locations?
Answers
The Johnson family must have The GPL's must be different at each location
The GNU General Public License (GNU, GPL, or GPL) is a free programming permit initially composed by Richard Stallman of the Free Programming Establishment, which ensures that clients are allowed to utilize, share, and change the product without paying anybody for it.
There are two significant terms of the GPL that are expected for legitimate utilization. In the first place, any engineer who needs to duplicate and disseminate a word for word duplicate of a piece of GPL-authorized programming should show a copyright notice, guarantee disclaimer, unblemished GPL sees, and a duplicate of the GPL with the duplicate of the product they are conveying. This will guarantee that they don't attempt to distort programming in any capacity. Second, in the event that they make any changes, extensions or developments to the product before they circulate it, they need to incorporate a clarification of each of the progressions they made, notwithstanding every one of different notification expected for a word for word duplicate.
The GPL is a copyleft permit, in which the permit is defensive or complementary for all works that are gotten from the first.
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What the Benefits of SMART TRAFFIC MANAGEMENT SYSTEM in iot
?
please in the beginning small paragraph
Answers
Smart Traffic Management Systems in IoT optimize traffic flow, enhance safety, and reduce congestion through real-time monitoring, incident detection, and data analysis.
Smart Traffic Management Systems leverage the power of IoT to revolutionize transportation management. Real-time monitoring of traffic conditions enables dynamic adjustments to traffic signal timings, ensuring optimized traffic flow and reducing congestion. By utilizing IoT sensors and cameras, these systems can detect incidents such as accidents, breakdowns, or congestion, allowing for immediate responses and appropriate interventions, such as redirecting traffic or dispatching emergency services. Furthermore, the collected data from various sources, including sensors and vehicles, can be analyzed to identify traffic patterns, bottlenecks, and peak hours.
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what are the explanation(s) of the following 2 phrases: Trust
encourages taking risks. Trusting groups are more effective.
Answers
Trust is a concept that plays a crucial role in both personal and group dynamics. It encourages individuals to take risks, and when groups trust one another, they tend to be more effective.
Trust encourages taking risks: Trust is the belief or confidence in the reliability, integrity, and abilities of someone or something. When individuals trust each other, they feel secure in taking risks because they believe that the other person will act in their best interest or have their back. For example, in a workplace setting, if employees trust their colleagues and superiors, they are more likely to take risks in proposing new ideas or implementing innovative solutions. This fosters creativity, growth, and progress within the organization.
Trusting groups are more effective: When groups trust each other, they create an environment of psychological safety and cooperation. This allows them to work collaboratively towards shared goals, making the group more effective and productive. Trusting groups tend to communicate openly, share knowledge and resources, and support each other. This enables better decision-making, problem-solving, and conflict resolution within the group. For instance, in a sports team, if the players trust and rely on each other's abilities, they are more likely to work together seamlessly and achieve success on the field.
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Trust encourages taking risks because when individuals trust each other, they feel more secure and supported in their decisions.
This enables them to take risks without fear of negative consequences or judgment. For example, in a team project, if team members trust each other, they are more likely to propose new ideas, express their opinions openly, and take calculated risks that could lead to innovation and success.
Trusting groups are more effective because trust creates a positive and cooperative environment where members feel comfortable sharing ideas, collaborating, and working towards a common goal. In a trusting group, individuals are more likely to communicate openly, listen to others' perspectives, and support each other's efforts. This leads to increased productivity, better problem-solving, and overall higher team performance.
To summarize, trust plays a crucial role in both individual and group contexts. It encourages taking risks by providing a sense of security and support, and it enhances group effectiveness by fostering cooperation, communication, and collaboration.
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Which measure of central tendency would a baseball manager be most likely to rely on in picking a pinch hitter in a tie game
Answers
Answer:
mean
Explanation:
What is the price of a Stryker Corporation's bond that has a 13.75 percent coupon and a face value of $1,000, pays interest semiannually, and has 25 years to maturity, if the required rate of return is 16 percent?
Answers
The price of a Stryker Corporation's bond that has a 13.75 percent coupon and a face value of $1,000, pays interest semiannually, and has 25 years to maturity, if the required rate of return is 16 percent is $797.61.
The price of a Stryker Corporation's bond that has a 13.75 percent coupon and a face value of $1,000, pays interest semiannually, and has 25 years to maturity, if the required rate of return is 16 percent is $797.61.Steps to solve the given problem:Given:Face value of the bond, F = $1000Coupon rate, C = 13.75%Semi-annual coupon payment = (13.75% of $1000)/2= $68.75No. of years to maturity, n = 25 yearsRequired rate of return, r = 16% per yearSemi-annual required rate of return, i = r/2= 8% per periodSemi-annual coupon payment, C = $68.75Using the formula for the present value of an annuity with semi-annual payments:PV of annuity = [C/i][1 - (1 + i)^(-2n)]...[1]where C is the semi-annual coupon payment, i is the semi-annual required rate of return, and n is the total number of semi-annual periods for the bond (n = 2 × 25 = 50).PV of annuity = [$68.75/0.08][1 - (1 + 0.08)^(-50)] = $604.29The present value of the face value is calculated using the formula for the present value of a single amount:PV of face value = F/(1 + i)^n...[2]where F is the face value, i is the semi-annual required rate of return, and n is the total number of semi-annual periods for the bond (n = 2 × 25 = 50).PV of face value = $1000/(1 + 0.08)^50 = $193.32The price of the bond is the sum of the present values of the annuity and the face value:P = $604.29 + $193.32 = $797.61.
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Exercise 5-3 Recording journal entries for merchandise purchase transactions-perpetual LO3 Jaleh Mehr is the owner of the retail store 151 Jeans. She purchases jeans from a number of manufacturers to bring great style and fit to her customers. Prepare journal entries for March 2020 to record the following transactions. Assume a perpetual inventory system. Mar. 2 Purchased jeans from Paige Denim under the following terms: $4,200 invoice price, 2/15, n/68, FOB shipping point. 3 Paid $350 for shipping charges on the purchase of March 2. 4 Returned to Paige Denim unacceptable merchandise that had an invoice price of $400. 17 Sent a cheque to Paige Denim for the March 2 purchase, net of the returned merchandise and applicable discount. 18 Purchased jeans from ) Brand under the following terms: $9,600 invoice price, 2/10, n/30, FOB destination. 21 After brief negotiations, received from Brand a $2,100 allowance on the purchase of March 18 28 Sent a cheque to J Brand paying for the March 18 purchase, net of the discount and the allowance
Answers
In March 2020, journal entries transaction are made for purchases, returns, shipping charges, and allowances, while payments are recorded separately.
Mar. 2: Purchased jeans from Paige Denim for $4,200 (FOB shipping point). No journal entry required at this point.
Mar. 3: Paid $350 for shipping charges on the March 2 purchase. Journal entry: Debit "Inventory" for $350 and Credit "Cash" for $350.
Mar. 4: Returned unacceptable merchandise to Paige Denim, worth $400. Journal entry: Debit "Accounts Payable" for $400 and Credit "Inventory" for $400.
Mar. 17: Sent a cheque to Paige Denim, net of returned merchandise and applicable discount. No journal entry required at this point.
Mar. 18: Purchased jeans from J Brand for $9,600 (FOB destination). No journal entry required at this point.
Mar. 21: Received a $2,100 allowance from J Brand for the March 18 purchase. Journal entry: Debit "Accounts Payable" for $2,100 and Credit "Inventory" for $2,100.
Mar. 28: Sent a cheque to J Brand, net of discount and allowance. No journal entry required at this point.
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