Answer:
$17.25 million
Explanation:
Calculation to determine what was Centipede's income tax payable currently, assuming a tax rate of 25%
Accounting income $80 Temporary difference
Less Depreciation ($15)
($35 - 20)
Add Warranty expense $4
($6 - $2)
Taxable income $69
($80-$15+$4)
Enacted tax rate 25%
Tax payable currently $17.25 million
($69$25%)
Therefore Centipede's income tax payable currently, assuming a tax rate of 25% will be $17.25 million
Vaughn, Inc. had net sales in 2020 of $1,410,300. At December 31, 2020, before adjusting entries, the balances in selected accounts were Accounts Receivable $348,200 debit, and Allowance for Doubtful Accounts $2,940 credit. If Vaughn estimates that 10% of its receivables will prove to be uncollectible. Prepare the December 31, 2020, journal entry to record bad debt expense.
Answer:
Date Account Title Debit Credit
Dec. 31 2020 Bad Debt expense $31,880
Allowance for Doubtful Accounts $31,880
Explanation:
Bad debt expense for the period:
= (Estimate of uncollectible receivables) - Allowance for Doubtful accounts credit balance
= (348,200 * 10%) - 2,940
= $31,880
The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015: Accounts payable $ 18,000 Accounts receivable 11,000 Accumulated depreciation – equipment 28,000 Advertising expense 21,000 Cash 15,000 Common stock 42,000 Dividends 14,000 Depreciation expense 12,000 Insurance expense 3,000 Note payable, due 6/30/16 70,000 Prepaid insurance (12-month policy) 6,000 Rent expense 17,000 Retained earnings (1/1/15) 60,000 Salaries and wages expense 32,000 Service revenue 133,000 Supplies 4,000 Supplies expense 6,000 Equipment 210,000 What is the amount that would be reported for stockholders’ equity at December 31, 2015?
Answer:
Postal Service
The amount that would be reported for Stockholders' Equity at December 31, 2015 is:
= $130,000.
Explanation:
a) Trial Balance
December 31, 2015:
Cash $15,000
Accounts receivable 11,000
Supplies 4,000
Prepaid insurance (12-month) 6,000
Equipment 210,000
Accounts payable $ 18,000
Accumulated depreciation – equipment 28,000
Note payable, due 6/30/16 70,000
Common stock 42,000
Retained earnings (1/1/15) 60,000
Dividends 14,000
Service revenue 133,000
Advertising expense 21,000
Depreciation expense 12,000
Insurance expense 3,000
Rent expense 17,000
Salaries and wages expense 32,000
Supplies expense 6,000
Totals $351,000 $351,000
Income Statement for the year ended December 31, 2015
Service revenue $133,000
Advertising expense 21,000
Depreciation expense 12,000
Insurance expense 3,000
Rent expense 17,000
Salaries and wages expense 32,000
Supplies expense 6,000 $91,000
Net income $42,000
Statement of Retained Earnings
For the year ended December 31, 2015
Retained earnings (1/1/15) $60,000
Net income 42,000
Dividends (14,000)
Retained earnings (December 31, 2015) $88,000
Equity:
Common stock $42,000
Retained earnings 88,000
Total equity $130,000
Pix Company has the following production data for March: no beginning work in process, units started and completed 25,500, and ending work in process 4,400 units that are 100% complete for materials and 40% complete for conversion costs. Pix uses the FIFO method to compute equivalent units. If unit materials cost is $5 and unit conversion cost is $12, determine the costs to be assigned to the units transferred out and the units in ending work in process. The total costs to be assigned are $476,620.
Answer:
Ending Work In Process Cost = $43,120
Units Transferred out Cost = $433,500
Explanation:
Step 1 : Equivalent units calculation
Materials
Ending Work in Process = 4,400 x 100% = 4,400 units
Conversion
Ending Work in Process = 4,400 x 40% = 1,760 units
Step 2 : Total Costs assigned to Ending Work In Process
Ending Work In Process Cost = Materials + Conversion Costs
= 4,400 x $5 + 1,760 x $12
= $43,120
Step 3 : Total Cost of Units Transferred out
Units Transferred out = Total Unit Cost x Units transferred
= $17.00 x 25,500
= $433,500
Arendelle Enterprises has inventory of $667,000 in its stores as of December 31. It also has two shipments in-transit that left the suppliers' warehouses by December 28. Both shipments are expected to arrive on January 5. The first shipment of $128,000 was sold f.o.b. destination and the second shipment of $80,000 was sold f.o.b. shipping point. What amount of inventory should Arendelle report on its balance sheet as of December 31
Answer:
$747,000
Explanation:
Calculation to determine What amount of inventory should Arendelle report on its balance sheet as of December 31
December 31 Inventory $667,000
Add Second shipment f.o.b. shipping point of $80,000
December 31 Inventory $747,000
($667,000+$80,000)
Therefore What amount of inventory should Arendelle report on its balance sheet as of December 31 is $747,000
Duck, an accrual basis corporation, sponsored a rock concert on December 29, 2020. Gross receipts were $300,000. The following expenses were incurred and paid as indicated:
Expense Payment Date
Rental of coliseum $25,000 December 21, 2020
Cost of goods sold:
Food 30,000 December 30, 2020
Souvenirs 60,000 December 30, 2020
Performers 100,000 January 5, 2021
Cleaning the coliseum $10,000 February 1, 2021
Performers Cleaning the coliseum Because the coliseum was not scheduled to be used again until January 15, the company with which Duck had contracted did not perform the cleanup until January 8-10, 2020. a. Calculate Duck's net income from the concert for tax purposes for 2019. If an amount is zero, enter "0".
Gross receipts 300,000 ✓
Coliseum rental 25,000
Food 30,000
Souvenirs 60,000
Performers 100,000
a. Calculate Duck's net income from the concert for tax purposes for 2019. If an amount is zero, enter "0". Gross receipts 300,000 Less: Coliseum rental 25,000 Food 30,000 Souvenirs 60,000 Performers 100,000 Cleaning costs Total expenses 215,000 Net income for 2019 85,000
b. What is the true cost to Duck if it had to defer the $100,000 deduction for the performers until 2020? Assume a 5% discount rate and a 21% marginal tax rate in 2019 and 2020. The present value factor for a single sum at 5% for one year is 0.9524. If required, round your answers to the nearest dollar. The present value of the 2020 tax savings is and the cost of the deferral to Duckiss.
Answer:
Duck Corporation
Rock Concert
a) Income Statement for the year ended December 31, 2020:
Gross receipts $300,000
Less: Coliseum rental 25,000
Food 30,000
Souvenirs 60,000
Performers 100,000
Total expenses 215,000
Net income for 2019 85,000
b) The true cost is $116,240.
Explanation:
a) Data and Calculations:
Rental of coliseum $25,000 December 21, 2020
Cost of goods sold:
Food 30,000 December 30, 2020
Souvenirs 60,000 December 30, 2020
Performers 100,000 January 5, 2021
Cleaning the coliseum $10,000
b) The Cleaning expense is excluded because the services had not been rendered as at December 31. The inclusion of the Performers' compensation is necessary because the services had been enjoyed and incurred as at December 31.
c) The true cost = the Present value of the $100,000 performers' compensation plus additional tax expense of $21,000 ($100,000 * 21%) that would have been deducted.
= $116,240 ($95,240 + $21,000)
Bank Reconciliation On July 31, Sullivan Company's Cash in Bank account had a balance of $9,381.58. On that date, the bank statement indicated a balance of $11,828.12. A comparison of returned checks and bank advices revealed the following: Deposits in transit July 31 amounted to $4,650.03. Outstanding checks July 31 totaled $1,908.27. The bank erroneously charged a $422.50 check of Solomon Company against the Sullivan bank account. A bank service charge has not yet been recorded by Sullivan Company of $32.50. Sullivan neglected to record $5,200.00 borrowed from the bank on a ten percent six-month note. The bank statement shows the $5,200.00 as a deposit. Included with the returned checks is a memo indicating that J. Martin's check for $832.00 had been returned NSF. Martin, a customer, had sent the check to pay an account of $858.00 less a $26 discount. Sullivan Company recorded a $141.70 payment for repairs as $1,417.00 Required a. Prepare a bank reconciliation for Sullivan Company at July 31. b. Prepare the journal entry (or entries) necessary to bring the Cash in Bank account into agreement with the reconciled cash balance on the bank reconciliation. Note: Do not round answers - enter using two decimal places, when needed.
Solution :
Sullivan's Company
Bank Reconciliation Statement, July 31
BANK BOOK
Ending balance from $11,828.12 Balance from the ledger $9,381.58
bank statement.
Add : Add :
Deposit in transit $4,650.03 Note payable borrowed $5,200
from bank
Error by bank $422.50 Error in recording payment $1275.3
$ 16,900.65 $15,856.88
Less: Less :
Outstanding checks $1,908.27 Service charge $32.50
NSF Check $832
Reconciled cash balance $ 14992.38 Reconciled cash balance $14992.38
b).
Date Accounts titles and explanations Debit($) Credit($)
July 31 Cash 5,200.00
Notes payable 5,200.00
July 31 Cash 1275.3
Repair expenses 1275.3
July 31 bank charges 32.50
Cash 32.50
July 31 Accounts receivable 832
cash 832
What two factors are necessary for demand?
good or service and its availability in the market.
Answer:
Desire for a good or service and its availability in the market.
Grand River Corporation reported taxable income of $400,000 in year 1 and paid federal income taxes of $160,000. Not included in the computation was a disallowed meals expense of $3,100, tax-exempt income of $2,100, and deferred gain on an installment sale from a prior year of $36,000. The corporation's current earnings and profits for year 1 would be:
Answer: $275,000
Explanation:
Earnings and Profit for the year:
= Taxable income - Federal income taxes - Disallowed meals expense + Tax exempt income + Deferred gain
= 400,000 - 160,000 - 3,100 + 2,100 + 36,000
= $275,000
Do airlines practice price discrimination LOADING... ? Explain. Airlines A. engage in price discrimination by charging business travelers and leisure travelers different prices . B. do not engage in price discrimination because they charge lower prices to passengers who will stay at their destination over a Saturday night. C. engage in price discrimination by maintaining the same price on seats even if seats will not be sold . D. do not engage in price discrimination because the marginal cost of flying one additional passenger is low . E. do not engage in price discrimination because their passengers have similar demands.
Answer:
A. engage in price discrimination by charging business travelers and leisure travelers different prices.
Explanation:
Yes, airlines practice price discrimination. They engage in price discrimination by charging business travelers and leisure travelers different prices for the same distance travelled.
Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services.
In sales and marketing, pricing of products is considered to be an essential element of a business firm's marketing mix because place, promotion and product largely depends on it.
Price discrimination refers to the situation in which a business firm sells an identical product to different consumers at different selling price based on reasons that are not in any way associated or related with its manufacturing cost.
The efficient market hypothesis suggests that: Multiple Choice while individuals can be irrational, collectively they will not. because individuals are rational, collectively they are also rational. irrationality must a part of every economic model. asset price bubbles are efficient.
Answer: asset price bubbles are efficient.
Explanation:
The efficient market hypothesis simply states that all information are reflected by the share prices.
The efficient market hypothesis suggests that asset price bubbles are efficient. We should note they economic bubbles take place when the price of assets increases more then their true economic value but late falls.
You manage a cable company that offers 2 channels - NBC and Fox. You face 2 types of customers (type A and type B) and there are 100 customers of each type. Their respective values for each channel are:
Type A Type B
NBC $10 $15
Fox $3 $7
Suppose that you sell each channel separately. You should set a price of $__________ for NBC and a price of $_________ for Fox.
Answer:
You should set a price of $___15_____ for NBC and a price of $___7___ for Fox.
Explanation:
a) Data and Calculations:
Customer Type A Type B Maximum Price
NBC $10 $15 $15
Fox $3 $7 $7
Combined value $13 $22
b) The cost of each channel would have enabled a better decision outcome to be reached. However, it is better to set the maximum prices since individual values can change based on the forces of demand and supply.
Julio produces two types of calculator, standard and deluxe. The company is currently using a traditional costing system with machine hours as the cost driver but is considering a move to activity-based costing. In preparing for the possible switch, Julio has identified two cost pools: materials handling and setup. The collected data follow:
Standard Model Deluxe Model
Number of machine hours 26,500 31,500
Number of material moves 625 925
Number of setups 85 575
Total estimated overhead costs are $313, 020, of which $183, 750 is assigned to the material handling cost pool and $179, 180 is assigned to the setup cost pool.
Required:
1. Calculate the overhead assigned to each product using the traditional cost system.
2. Calculate the overhead assigned to each product using ABC.
Answer:
Results are below.
Explanation:
a)
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 313,020 / 58,000
Predetermined manufacturing overhead rate= $5.4 per machine hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Standard= 5.4*26,500= $143,100
Deluxe= 5.4*31,500= $170,100
b)
First, we need to calculate the allocation rates:
Material handling= 183,750 / 1,550= $118.55 per material moves
Setup= 179,180 / 660= $271.48 per setup
Now, we can allocate overhead:
Standard= 118.55*625 + 271.48*85= $97,169.55
Deluxe= 118.55*925 + 271.48*575= $265,759.75
what are tresholds in auditing?
Answer:
:)
Explanation:
The materiality threshold in audits refers to the benchmark used to obtain reasonable assurance that an audit does not detect any material misstatement that can significantly impact the usability of financial statements.
Isaiah is a Financial Quantitative Analyst for a major stock investment company. What does Isaiah do on a daily basis as a part of his job?
He researches, analyzes, and summarizes information about fraud.
He assesses financial situations using mathematical models.
He analyzes tax information using mathematical formulas.
He manages the paperwork for buying and selling securities.
Answer:
He researches, analyzes, and summarizes information about fraud.
Answer:
A
Explanation:
He researches, analyzes, and summarizes information about fraud.
At a movie theater box office, all tickets are sequentially prenumbered. At the end of each day, the beginning ticket number is subtracted from the ending number to calculate the number of tickets sold. Then, ticket stubs collected at the theater entrance are counted and compared with the number of tickets sold. Which of the following situations does this control detect?
a. Some customers presented tickets purchased on a previous day when there wasn't a ticket taker at the theater entrance (so the tickets didn't get torn.)
b. A group of kids snuck into the theater through a back door when customers left after a show.
c. The box office cashier accidentally gives too much change to a customer.
d. The ticket taker admits his friends without tickets.
Coffee Klatch is an espresso stand in a downtown office building. The average selling price of a cup of coffee is $1.49 and the average variable expense per cup is $0.24. The average fixed expense per month is $1,600. An average of 2,100 cups are sold each month. What is the CM Ratio for Coffee Klatch?
Answer:
The contribution margin ratio for Coffee Klatch is 83%.
Explanation:
Given that Coffee Klatch is an espresso stand in a downtown office building, and the average selling price of a cup of coffee is $ 1.49 and the average variable expense per cup is $ 0.24, and the average fixed expense per month is $ 1,600, to determine what is the CM Ratio for Coffee Klatch if an average of 2,100 cups are sold each month, the following calculation must be performed:
Contribution margin ratio: (sales - variable costs) / sales
((2,100 x 1.49) - (2,100 x 0.24)) / (2,100 x 1.49) = X
(3.129 - 504) / 3.129 = X
2.625 / 3.129 = X
0.83 = X
Thus, the contribution margin ratio for Coffee Klatch is 83%.
PLEASE HELP!! Imagine you are applying for a job as a babysitter or as a grass-cutter. Write a cover letter that tells the family why you are qualified for the job. Use a proper business letter writing format
I am a devoted babysitter. I have plenty of experience with children. I know how to cook, I am great with tools. I am very independent and have plenty of potentials. I hope you can trust me with your kids or your yard.
Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $130,500, allowance for doubtful accounts of $925 (credit) and sales of $1,055,000. If uncollectible accounts are estimated to be 7% of accounts receivable, what is the amount of the bad debts expense adjusting entry
Answer:
the amount of bad debt expense for the adjusting entry is $8,210
Explanation:
The computation of the amount of bad debt expense for the adjusting entry is shown below:
= Unadjusted trial balance × estimated percentage - credit balance of allowance for doubtful accounts
= $130,500 × 7% - $925
= $9,135 - $925
= $8,210
Hence, the amount of bad debt expense for the adjusting entry is $8,210
A proposed new project has projected sales of $219,000, costs of $96,000, and depreciation of $26,000. The tax rate is 23 percent. Calculate operating cash flow using the four different approaches. (Do not round intermediate calculations.) Top-down
Answer and Explanation:
The computation of the operating cash flow using the four different approaches is shown below:
1. EBIT + depreciation - taxes approach
But before that the net income would be
Sales $219,000
Less cost -$96,000
Less depreciation -$26,000
EBT $97,000
Less tax at 23% -$22,310
Net income $74,690
Now the operating cash flow is
= EBIT + depreciation - taxes
= $97,000 $26,000 - $22,310
= $100,690
2. top down approach
= Sales - cost - taxes
= $219,000 - $96,000 - $22,310
= $100,690
3. Tax shield approach
= (Sales - cost) × (1 - tax rate) + tax rate × depreciation expense
= ($219,000 - $96,000) × 0.23 + 0.23 × $26,000
= $94,710 + $5,980
= $100,690
4. Bottom up approach
= Net income + depreciation
= $74,690 + $26,000
= $100,690
Assume you are a hiring manager selecting between two finalist candidates, Candidate A and Candidate B. The successful candidate will earn an annual salary of $250,000. Candidate A will generate $500,000 in revenue with 85% probability and $300,000 in revenue with 15% probability. Candidate B will generate $500,000 in revenue with 50% probability and $250,000 inrevenue with 50% probability.a.What is the expected net revenue of Candidate A
Your losses from a stolen ATM card are unlimited if you fail to report unauthorized use within 30 days after your statement is mailed to you.
a. True
b. False
Ann Jones uses a dry-cleaning machine in her business, and it was partially destroyed by firE. At the time of the fire, the adjusted basis was $20,000 and its fair market value was $18,000. The adjusted basis after the fire is $10,000 and the fair market value after the casualty is $10,000. How much is the casualty loss
Answer:
the casualty loss is $8,000
Explanation:
The computation of the casualty loss is given below:
Lower of
= Adjusted basis or decline in FMV
= $10,000 or ($18,000 - $10,000)
= $10,000 or $8,000
= $8,000
hence, the casualty loss is $8,000
The same would be considered and relevant
The other values would be ignored
Journalizing Payroll Transactions On December 31, the payroll register of Hamstreet Associates indicated the following information: Wages and Salaries Expense $9,500.00 Employee Federal Income Tax Payable 960.00 United Way Contributions Payable 150.00 Earnings subject to Social Security tax 8,800.00 Use Social Security 6.2% and Medicare 1.45% as specified in the text. 1. Determine the amount of Social Security and Medicare taxes to be withheld. If required, round your answers to the nearest cent.
Answer:
Social Security tax
= Social security tax rate * Earnings subject to Social security tax
= 6.2% * 8,800
= $545.60
Medicare taxes.
These will be on the total earnings as there is no limit to the amount it can be applied to:
= 1.45% * 9,500
= $137.75
Suppose an American business owner purchases chocolates from Belgium in order to sell them in her shops. This would be entered as a ____________ item under the ___________________ section of the U.S. current account. Consider the goods and services balance. According to the table, the United States is running a trade ____________ .
The current account balance suggests that U.S. current account transactions (exports and imports of goods and services, as well as inflow and outflow of investment income and transfers) created outpayments of foreign currencies from the United States that were __________________the inpayments of foreign currencies to the United States.
Any surplus or deficit in one account must be offset by deficits or surpluses in other balance-of-payments accounts. Because the current account is in ____________ , the excess of foreign currency held by Americans must either be loaned to foreigners or used to buy foreign stocks or bonds. All of these transactions are then recorded in the _______________account. Since any imbalance in one account automatically leads to an equal, but opposite, imbalance in the other, the balance of payments is always _____________
Answer:
Debit
U.S. merchandise imports
Surplus
equal to
Surplus
current
zero
Explanation:
The trade deficit or surplus is based on the exports and imports of the country. When the imports are higher than exports then there will be trade deficit in the current account. In the given scenario the case is other way round, here imports are less than exports which suggests that there is a trade surplus which is offset by other accounts and balance of payment turn out to be zero.
Explain the effects of low price-guarantee on the price.
Answer:
Low price guarantees have adverse effects on consumer behavior. These strategies can cause consumers to become suspicious of the offer and may avoid making the purchase all together.
Low price guarantee is a policy where the seller offer a price is guaranteed to match or beat any other lower price in the market.
Usually, the low price guarantees does persuade the consumers to make purchase, but, it can also have adverse effects on consumer behavior at times.
The strategy of low price-guarantee on the price of the product can cause the consumers to become suspicious and thus, may lead to a decision to avoid making the purchase.
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Which of the following is/are true about kanban? A. The purpose of the kanban system is to ensure that parts are produced JIT to support subsequent processes. B. Some companies control the movement of the containers by using two types of kanban cards, production cards and withdrawal cards. C. Kanban cards take the place of shop paperwork used in traditional repetitive mass production. D. a and b are true
Answer:
c
Explanation:
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Stallman Company took a physical inventory on December 31 and determined that goods costing $200,000 were on hand. Not included in the physical count were $25,000 of goods purchased from Pelzer Corporation, FOB, shipping point, and $22,000 of goods sold to Alvarez Company for $30,000, FOB destination. Both the Pelzer purchase and the Alvarez sale were in transit at year-end.
What amount should Stallman report as its December 31 inventory?
In its first month of operations, Bethke Company made three purchases of merchandise in the following sequence: (1) 300 units at $6, (2) 400 units at $7, and (3) 200 units at $8. Assuming there are 360 units on hand, compute the cost of the ending inventory under the (a) FIFO method and (b) LIFO method. Bethke uses a periodic inventory system.
A) Cost of the ending inventory LIFO.
B) Cost of the ending inventory.
Answer:
1. $247,00
A. $2,720
B.$2,220
Explanation:
1. Calculation to determine What amount should Stallman report as its December 31 inventory
Using this formula
December 31 Ending inventory = Inventory count as per physical count + Inventory in transit FOB Shipping point + Inventory in transit FOB destination
Let plug in the formula
December 31 Ending inventory= $200,000 + $25,000+ $22,000
December 31 Ending inventory= $247,000
Therefore What amount should Stallman report as its December 31 inventory is $247,000
A) Calculation to determine the Cost of the ending inventory FIFO.
Cost of ending inventory = (200 units * $8) +(360 units- 200 units * $7)
Cost of ending inventory = (200 units * $8) + (160 units * $7)
Cost of ending inventory= $1,600 + $1,120
Cost of ending inventory= $2,720
Therefore The Cost of ending inventory is $2,720
(b) Calculation to determine The cost of ending inventory under the LIFO method
Cost of ending inventory = (300 units * $6) +(360 units -300 units* $ 7)
Cost of ending inventory = (300 units * $6) + (60 units * $ 7)
Cost of ending inventory = $1,800 + $420
Cost of ending inventory = $2,220
Therefore The cost of ending inventory under the LIFO method will be $2,220
Thermopolis, Inc. reported retained earnings of $490,953 on December 31, 2017. During the year, Thermopolis recorded net income of $135,075 and paid dividends of $57,762. The company had no other transactions that affected retained earnings. What must retained earnings have been on December 31, 2016
Answer:
the Opening retained earning balance is $413,640
Explanation:
The computation of the retained earnings have been on December 31, 2016 is shown below:
As we know that
Ending retained earning balance = Opening retained earning balance + net income - dividend paid
$490,953 = Opening retained earning balance + $135,075 - $57,762
$490,953 = Opening retained earning balance + $77,313
So, the Opening retained earning balance is $413,640
Batista Company management wants to maintain a minimum monthly cash balance of $19,900. At the beginning of April, the cash balance is $19,900, expected cash receipts for April are $244,400, and cash disbursements are expected to be $253,300. How much cash, if any, must be borrowed to maintain the desired minimum monthly balance
Answer:
the amount must be borrowed is $8,900
Explanation:
The computation of the amount must be borrowed is shown below:
Opening cash balance $19,900
Add: cash receipts $244,400
Less: cash disbursements -$253,300
Cash balance after disbursements $11,000
Minimum monthly cash balance $19,900
Amount to be borrowed $8,900
hence, the amount must be borrowed is $8,900
If Morgan Industries issued a Credit Memorandum on January 20 for a return of $1,100 of merchandise purchased on account by Doug Bowen, plus 6 percent sales tax, the credit memorandum total would be:
Answer:
1166
Explanation:
Morgan industries issued a credit
memorandum of $1100 on January 20th
They also have 6% tax sales
= 6/100 × 1100
= 0.06×1100
= 66
Therefore the total credit memorandum can be calculated as follows
= 1100+66
= 1,166
Hence the credit memorandum total is $1166
