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Flauer [41]
2 years ago
15

On December 1, Altona Winery sells $100,000 of its accounts receivable and is charged a 5 percent factoring fee. Prepare the Dec

ember 1 journal entry for Altona by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Business
1 answer:
Natali5045456 [20]2 years ago
5 0

Answer:

The journal entry in respect of the factored debt is shown below:

Dr Cash                           $95,000

Dr Factoring cost              $5000

Cr Accounts receivable                  $100,000

Explanation:

The factoring of accounts receivable implies that a finance company known as factor takes responsibility for chasing debtors for payments in return for a 5% charge of the accounts receivable.

Since factoring transfers accounts receivable to factoring comparing, accounts receivable is credited with face value of the debt,an inflow of cash from the factor is debited to cash account while also debiting the difference debt and cash received to a factoring expense account.

This avails the company quick access to cash receivable later.

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Kendra’s Quilts makes custom baby quilts embroidered with the baby’s name and date of birth. The company is considering the purc
maxonik [38]

Answer:

They should purchase the machine.

Explanation:

Giving the following information:

The company is considering the purchase of a new embroidery machine that costs $75,000. The increased efficiency of the new machine would allow the company to increase revenue by 50%, from $250,000 to $375,000 annually. Direct labor costs would increase by $15,000, and fixed costs (not including depreciation on the machine) would increase by $12,500.

Effect on income= 125,000 - 75,000 - 15,000 - 12,500= $22,500

They should purchase the machine.

8 0
2 years ago
You are a manager in a supermarket. One evening, you hear raised voices and see Chuck shouting at a customer, "I’m not going to
shusha [124]

Answer:

punishment

Explanation:

Basically, the manager is trying to change the behavior of his employee, Chuck. In management and organizational psychology, that is often referred to as the <em>reinforcement theory of motivation</em>.

In this example, the manager uses remuneration punishment in order to alter Chuck's noted behavior pattern.

<u>NOTE </u>- This is not to be confused with <em>negative reinforcement</em>, which is also related to the reinforcement theory. Although the term <em>negative </em>may imply some similarities with punishment, negative reinforcement is a different concept. While punishment is directly weakening the <em>unwanted </em>behavior, negative reinforcement is strengthening a <em>desired </em>behavior, by means of removing an unwanted consequence <u>for the employee</u> when he follows the wanted behavior pattern.

For example, a form of negative reinforcement would be if Chuck knew upfront that his pay would be reduced if he yelled at his customers and he avoided yelling in the first place because of that.

3 0
2 years ago
Tara invests $2,500 today and another $1,500 a year from now. Her investments starting year 2 keeps increasing by $100 every yea
Neko [114]

Answer:

$61,175

Explanation:

Base on the scenario been described in the question, we expected to solve for the future worth

The table of the cash flow is shows in the picture

We can find that by calculating the Future worth

Future Worth = {2,500 + 1,500(P/A 7%,10) 100 + (P/G 7%,10) } [F/P 7%, 20]

Future worth = { 2,500 + 1500(7.024) + 100(27.716)}

Future worth = $61,175

6 0
2 years ago
Barney is 70 years old and has just retired from a career as a lawyer. He is now spending time looking back on his life and is r
Bas_tet [7]

Answer:

Life Review

Explanation:

Barney is engaged in life review process where one person return progressively to his or her consciousness of the conflicts and memories of the past which were never resolved properly, the main purpose is to re-evaluate them and to find some kind of resolutions. This is one of the most common phenomenon in which older people are engaged in their post age life where they re-call and remember their early life memories, mistakes, regrets, and unfinished tasks.

5 0
2 years ago
Wee Be Irish produces authentic Irish gifts and clothing. Wee Be Irish uses a good deal of television advertising and sales prom
gregori [183]

Answer:  pull marketing strategy

Explanation: In simple words, pull marketing strategy refers to the strategy in which the producer tries to create demand for the product by using promotional tools. Under this strategy, the firm focus to make customer seek a product unlike push strategy in which the firm focuses on pushing the product to people.

In the given case, WEE be is using TV medium to promote its product hence they are using pull marketing strategy.

3 0
2 years ago
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