Answer:
Explanation:
The journal entry is shown below:
Cash A/c Dr 15,900
To Notes Receivable A/c $15,000
To Interest Revenue A/c $900
(Being cash is collected with respect of notes receivable and interest revenue)
For recording this transaction, we debited the cash account and credited the notes receivable and interest revenue account
Answer:
600 shares
Explanation:
If a 3-for-2 stock split will take place, for every 2 stocks that an investor has, he will receive three stocks. So this specific investors who owns 400 stocks will receive:
(400 / 2) x 3 = 200 x 3 = 600 stocks.
After the 3-for-2 stock split, the company will have 50% more stocks outstanding and the price of each stock should be reduced by one third. So the investor shouldn't earn any profit from this split since the market value of the investment should remain about the same (stock prices change daily whether the split takes place or not).
Answer:
Richard is trying to understand if his product or service is substitutable.
Explanation:
According to the resource based theory, businesses gain competitive advantages over other businesses in the industry based on the strength of their resources.
For competitive advantage to be sustainable however, such resources must be rare, and not easily imitated or substituted.
Richard is carrying out research on his competitors to find out what they have to offer, to know if his product can be easily substituted or replaced.
Answer:
c. comparative advantage
Explanation:
As we know that
The one pound of silver would be equivalent to 0.5 pound of copper
And,
one pound of copper would be equivalent to 2 pounds of silver
based on this, there is a comparative advantage with respect to the silver production
Hence, the correct option is c.
Therefore all the other options are incorrect
Answer:
The entries are as follows
To record estimated returns on Sales
Debit: Sales Refund Payable Account $131,400
Credit: Accounts Receivables $131,400
To record estimated Cost of Sales returns
Debit: Inventory Returns Estimated Account $77,700
Credit: Inventory on Sales on Returns $77,700
Explanation:
To derive the figure for Sales Refund payable for the year
6% of $2,190,000
= 
= $131,400
To derive the figure for Inventory cost on Sales Refund payable for the year
6% of $1,295,000
= 
= $77,700
