Answer:
a) I used an excel spreadsheet to record the T-accounts
the closing entries would be:
Dr Sales revenue 12,100
Dr Purchase discounts 48
Dr Interest revenue 600
Dr Gain on sale of land 1,500
Cr Income summary 14,248
Dr Income summary 8,512
Cr Cost of goods sold 6,450
Cr Sales returns 1,680
Cr Sales discounts 242
Cr Distribution costs 140
Dr Income summary 5,736
Cr Retained earnings 5,736
b) Redd Company
Income Statement
For the year ended December 31, Year 2
Revenues:
- Sales revenues $12,100
- Sales returns ($1,680)
- Sales discounts ($242) $10,178
Cost of goods sold <u>($6,450)</u>
Gross profit $3,728
Expenses:
- Distribution costs ($140) <u>($140)</u>
Operating income $3,588
Other sources of income:
- Gain on sale of land $1,500
- Interest revenue $600 <u>$2,100</u>
Net income before taxes $5,688
Explanation:
Explanation:
The following transactions should be presented on a respective journals i.e
(1) Purchased merchandise on account = Purchase journal
As the purchase of merchandise is took place that is debited the merchandise inventory account and credited the account payable account
(2) Collected an account receivable = Cash journal as the cash is received
(3) Recorded depreciation expenses = General journal as it records the adjusting entries, or errors made in accounting, etc
Answer:
The Current price will result in a low supply for the good.
Explanation:
Answer:
multichannel distribution system
Explanation:
A multichannel distribution strategy refers to a distribution strategy that uses more than one channel to reach its customers:
- high-end security cars are sold though a B2B channel directly to government agencies.
- consumer cars are sold through retailers to final consumers.
- professional racing cars are sold through an alliance with Stadium Tires
Other distribution channels not used by Insta Car are directly from producer to final consumer through their own retailers or online sales, or using trading companies in foreign countries that act like wholesalers.
