Answer:
19 years
Explanation:
the 19th year your money will triple and be worth 3.0256 times the original sum.
Costs of $5,000 were incurred to acquire goods and make them ready for sale. The goods were shipped to the buyer (FOB shipping point) for a cost of $200. Additional necessary costs of $400 were incurred to acquire the goods. No other incentives or discounts were available. What is the buyer's total cost of merchandise inventory?a. $5,000.b. $5,200.c. $5,400. d. $5,600.
Answer:
d. $5,600
Explanation:
The computation of the total cost of merchandise inventory is shown below:
Cost of goods purchased $5,000
Add: Shipping charges (FOB point) $200
Additional necessary costs to purchase the goods $400
Buyer’s total cost of merchandise inventory $5,600
Hence, the total cost of merchandise inventory is $5,600
Therefore the option d is correct
Which ratio measures the number of dollars of operating cash available to meet each dollar of interest and other fixed charges that the firm owes?
Answer:
Fixed-charge coverage ratio
Explanation:
The fixed-charge coverage ratio can be regarded as a rato that gives the measurements of the ability of a firm have to cover all her fixed charges. These fixed charges could be expense as well as debt payments and interest. It displays the wellness that earnings of a company has to cover its fixed expenses. This ratio is considered by bank before they lend money to a business. It should be noted that Fixed-charge coverage ratio measures the number of dollars of operating cash available to meet each dollar of interest and other fixed charges that the firm owes.
Your uncle repays a $150 loan from Tenth National Bank (TNB) by writing a $150 check from his TNB checking account. Assume these funds are the only loans and deposits available for your uncle and the bank.
Required:
Write the T-account table.
Answer: See explanation
Explanation:
The T-account for your uncle before the loan is repaid will be:
Your Uncle:
Assets: Bank accounts $150
Liabilities: Loan $150
Tenth National Bank
Assets: Loan and advance $150
Liabilities: Deposits $150
The T-account and TNB for your uncle after the loan is repaid will be:
Your Uncle
Assets: Bank account $0
Liabilities: Loan $0
Tenth National Bank
Assets: Loan and advance $0
Liabilities: Deposits $0
The F. Mercury, Capital account has a credit balance of $42,000 before closing entries are made. Total revenues for the period are $60,200, total expenses are $42,300, and withdrawals are $11,000. What is the correct closing entry for the expense accounts
Answer: Debit Income Summary $42,300; Credit Expense accounts $42,300
Explanation:
It should be noted that the expense accounts have a normal debit balance and therefore in such case will be closed by crediting of the accounts.
In such case, the income summary account will be debited, and the expenses account will then be credited.
Based on the information given, the correct closing entry for the expense accounts will be:
Debit Income Summary $42,300
Credit Expense accounts $42,300.
Suppose that the owner of Boyer Construction is feeling the pinch of increased premiums associated with workersâ compensation and has decided to cut the wages of its two employees (Albert and Sid) from $25 per hour to $21 per hour. Assume that Albert and Sid view income and leisure as "goods," that both experience a diminishing rate of marginal substitution between income and leisure, and that the workers have the same before- and after-tax budget constraints at each wage. Albert and Sid's opportunity set is presented below:What is the value of A when the wage is $25?What is the value of A when the wage is $21?At the wage of $25 per hour, both Albert and Sid are observed to consume 14 hours of leisure (and equivalently supply 10 hours of labor). After wages were cut to $21, Albert consumes 12 hours of leisure and Sid consumes 16 hours of leisure. Determine the number of hours of labor each worker supplies at a wage of $21 per hour:Albert's supply of labor = _______Sid's supply of labor = ________How can you explain the seemingly contradictory result that the workers supply a different number of labor hours?A. Albert has no income effect, and Sid has no substitution effect when the wage declines to $21.B. Albert's substitution effect dominates his income effect when the wage declines to $21, and vice versa for Sid.C. Albert has no substitution effect, and Sid has no income effect when the wage declines to $21.D. Albert's income effect dominates his substitution effect when the wage declines to $21, and vice versa for Sid.
What is probability and non probability sampling?
Explanation:
I hope this will help you.
Based upon the following data for a business with a periodic inventory system, determine the cost of merchandise sold for August. Merchandise inventory, August 1 $ 96,610 Merchandise inventory, August 31 100,530 Purchases 254,660 Purchases returns and allowances 13,340 Purchases discounts 6,320 Freight in 4,070Cost of Merchandise Sold for August = ______.
Answer:
Cost of merchandise = $235150
Explanation:
Below is the calculations:
Cost of merchandise = Opening inventory - ending inventory + purchases - purchase return - purchase discount + freight
Now plug the value in the above formula:
Cost of merchandise = 96610 - 100530 + 254660 - 13340 - 6320 +4070
Cost of merchandise = $235150
On June 15, Oakley Inc. sells inventory on account to Sunglass Hut (SH) for $4,500, terms 4/10, n/30. On June 20, SH returns to Oakley inventory that SH had purchased for $1,000. On June 24, SH completely fulfills its obligation to Oakley by making a cash payment. What is the amount of cash paid by SH to Oakley
Answer: $3360
Explanation:
Based on the information given in the question, the amount of cash paid by SH to Oakley will be calculated as thus:
SH will be entitled to a discount of 4% since the payment was made within the discount period, therefore, the discount that is applicable will be:
= $4500 - $1000
= $3,500
Therefore, the amount of cash payment that is made by SH to Oakley will be:
= $3,500 - (4% × $3,500)
= $3500 - (0.04 × $3500)
= $3500 - $140
= $3360
Therefore, the amount of cash paid by SH to Oakley is $3360.
Travis and Andrea were divorced in 2017. Their only marital property consisted of a personal residence (fair market value of $400,000, cost of $200,000), and publicly traded stocks (fair market value of $800,000, cost basis of $500,000). Under the terms of the divorce agreement, Andrea received the personal residence and Travis received the stocks. In addition, Andrea was to receive $50,000 for eight years. I. If the $50,000 annual payments are to be made to Andrea or her estate (if she dies before the end of the eight years), the payments will qualify as alimony. II. Andrea has a taxable gain from an exchange of her one-half interest in the stocks for Travis' one-half interest in the house and cash. III. If Travis sells the stocks for $900,000, he must recognize a $400,000 gain. a.I, II, and III are true. b.Only III is true. c.Only I and II are true. d.Only I and III are true.
Answer: B. b.Only III is true.
Explanation:
It should be noted that in order to qualify as an alimony, then the cash payments have to stop when the payer dies.
It should be noted that the $50,000 annual payments that are to be made to Andrea or her estate if she dies before the end of the eight years doesn't qualify as alimony.
Therefore, the correct option will be that If Travis sells the stocks for $900,000, he must recognize a $400,000 gain.
Therefore, only III is correct.
Prior to June 30, a company has never had any treasury stock transactions. A company repurchased 100 shares of its $1 par common stock on June 30 for $40 per share. On July 20, it reissued 50 of these shares at $46 per share. On August 1, it reissued 20 of the shares at $38 per share. What is the journal entry necessary to record the repurchase of stock on June 30?A. Debit Common Stock $2,300; credit Cash $2,300.
B. Debit Common Stock $20; debit Treasury Stock $2,290; credit Cash $2,300.
C. Debit Common Stock $2,300; credit Treasury Stock $2,000; credit Paid-In Capital, Treasury Stock $300.
D. Debit Cash $2,300; credit Paid-in Capital, Treasury Stock $300; credit Treasury Stock $2,000.
E. Debit Cash $2,300; credit Treasury Stock $2,300.
Answer:
When shares are repurchased, they are recorded at the cost price in the books which means that they will be recorded at:
= 100 * 40
= $4,000
Cash will then be credited because assets are credited when they reduce.
Treasury stock will be debited to show that Equity is reducing.
Date Account Title Debit Credit
June, 30 Treasury Stock $4,000
Cash $4,000
A trial balance is a(n) (list/balance/chart)
of accounts and their balances at a point in time and is used to confirm that the sum of debit account balances equals the sum of
account balances. Use one word for each blank.
Answer:
- List; credit
"A trial balance is a(n) list of accounts and their balances at a point in time and is used to confirm that the sum of debit account balances equals the sum of credit account balances."
Explanation:
'Trial Balance' is described as the 'statement of the balances of all nominal accounts in a double-entry ledger.' It is primarily made with the aim to examine the equality in the debit, as well as, credit balances. As per the accounting rules, the total value of the debits must be equal to the total of credit values. Any difference or discrepancy in the balance signals that an error has been made in the calculation or making the entries and certain transactions are missed out. Thus, the correct words would be 'list and credit.'
Suppose Siam Traders has the following results related to cash flows for 2020:
Net Income of $7,200,000
Increase in Accounts Payable of $600,000
Increase in Accounts Receivable of $100,000
Decrease in Debt of $700,000
Depreciation Expenses of $2,000,000
Dividends Paid of $500,000
Decrease in Inventory of $1,000,000
Purchases of Property, Plant, & Equipment of $8,300,000
Other Adjustments from Financing Activities of -$100,000
Other Adjustments from Investing Activities of $400,000
Other Adjustments from Operating Activities of -$200,000
Requried:
Create a statement of cash flows with amounts in thousands.
Answer:
Siam Traders
Siam Traders
Statement of Cash Flows (in thousands)
Operating Activities:
Net Income $7,200
Non-cash adjustment:
Depreciation Expenses $2,000
Increase in Accounts Receivable ($100)
Decrease in Inventory $1,000
Increase in Accounts Payable $600
Other Adjustments from Operating Activities ($200)
Net cash from operating activities $10,500
Investing Activities:
Purchases of Property, Plant, & Equipment ($8,300)
Other Adjustments from Investing Activities $400
Net cash from investing activities ($7,900)
Financing Activities:
Decrease in Debt ($700)
Dividends Paid ($500)
Other Adjustments from Financing Activities of ($100)
Net cash from financing activities ($1,300)
Net cash flows $1,300
Explanation:
a) Data and Calculations:
Net Income of $7,200,000
Increase in Accounts Payable of $600,000
Increase in Accounts Receivable of $100,000
Decrease in Debt of $700,000
Depreciation Expenses of $2,000,000
Dividends Paid of $500,000
Decrease in Inventory of $1,000,000
Purchases of Property, Plant, & Equipment of $8,300,000
Other Adjustments from Financing Activities of -$100,000
Other Adjustments from Investing Activities of $400,000
Other Adjustments from Operating Activities of -$200,000
Operating Activities:
Net Income of $7,200,000
Depreciation Expenses of $2,000,000
Increase in Accounts Receivable of $100,000
Decrease in Inventory of $1,000,000
Increase in Accounts Payable of $600,000
Other Adjustments from Operating Activities of -$200,000
Investing Activities:
Purchases of Property, Plant, & Equipment of $8,300,000
Other Adjustments from Investing Activities of $400,000
Financing Activities:
Decrease in Debt of $700,000
Dividends Paid of $500,000
Other Adjustments from Financing Activities of -$100,000
Molly sells bracelets to Jean's Place, a boutique store. Molly is scheduled to deliver 100 bracelets on July 1. On June 15, Jean, the owner of Jean's Place calls Molly and says "I might not be able to pay for your bracelets." Molly does not deliver the bracelets on July 1. Jean can probably recover from Molly for breach of contract. Group of answer choices True False
Answer: False
Explanation:
The contract is such that Molly agreed to bring bracelets if Jean would pay for said bracelets.
The terms of the contract therefore are that Jean would pay and Molly would deliver. Jean then calls Molly and says that they will be unable to pay which means that they are not going to be able to hold up their responsibilities in the contract.
Molly has the right to then cancel the contract because the other party will not be able to perform their obligations and face no repercussion for it.
Item 2 On July 1 of the current calendar year, Plum Co. paid $8,000 cash for management services to be performed over a two-year period beginning July 1. Plum follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. The adjusting entry on December 31 of the current year for Plum would include:
Answer:
- July 1st - December 31st (6 months)
- Here, $8,000 is paid for 2 years (24 months)
So, expenses for 6 month = $8,000 * 6/24 = $2,000
Date Journal Entry Debit Credit
Expense $2,000
Prepaid expense $2,000
(To record the expense)
A truck that cost $72,000 and on which $60,000 of accumulated depreciation has been recorded was disposed of for $18,000 cash. The entry to record this event would include a
Answer:
Gain of $6,000.
Explanation:
Calculation to determine what The entry to record this event would include
Using this formula
Gain=(Accumulated depreciation+Cash)-Cost
Let plug in the formula
Gain=($60,000+$18,000)-$72,000
Gain=$78,000-$72,000
Gain=$6,000
Therefore The entry to record this event would include a gain of $6,000
a. Net income was $471,000.
b. Issued common stock for $74,000 cash.
c. Paid cash dividend of $11,000.
d. Paid $130,000 cash to settle a note payable at its $130,000 maturity value.
e. Paid $122,000 cash to acquire its treasury stock.
f. Purchased equipment for $91,000 cash.
Use the above information to determine cash flows from financing activities. (Amounts to be deducted should be indicated with a minus sign.)
Answer:
-$189,000
Explanation:
Calculation to determine the cash flows from financing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Issued common stock for cash $74,000
Less Paid cash dividend ($11,000)
Less Paid cash to settle a note payable ($130,000)
Less Paid cash to acquire its treasury stock ($122,000)
Cash flows from financing activities -$189,000
Therefore the Cash flows from financing activities is -$189,000
who is the cm of korea
Kim boo-kyum is cm ko korea
Answer:
kim book kyum is the cm of korea
Explanation:
hope it helps!!
The American Recovery and Reinvestment Act, signed by President Barack Obama in 2009, aimed at: Group of answer choices providing higher unemployment benefits to the residents of the economy. removing the supply bottlenecks in the economy. ensuring free trade flows across the world. stimulating the aggregate demand in the economy. closing an expansionary gap through a contractionary fiscal policy.
Answer: Stimulating the aggregate demand in the economy.
Explanation:
When former President Obama took over the governing of the nation in 2009, the country was in the midst of one of the worst global depressions that it had ever been through. Employment was high and aggregate demand was low.
President Obama therefore embarked on an expansionary fiscal policy by passing the American Recovery and Reinvestment Act which was to target certain sectors of the economy with the view of increasing investment in those sectors and consumption so that Aggregate demand can be stimulated in the economy as those two things are components of Aggregate demand.
Trey Morgan is an employee who is paid monthly. For the month of January of the current year, he earned a total of $4,538. The FICA tax for social security is 6.2% of the first $128,400 earned each calendar year, and the FICA tax rate for Medicare is 1.45% of all earnings for both the employee and the employer. The amount of federal income tax withheld from his earnings was $680.70. His net pay for the month is:_________
A) $3,857.30
B) $3,510.14
C) $4,538.00
D) $3,162.98
E) $4,190.84
Answer: $3,510.14
Explanation:
Trey Morgan's net pay will be amount remaining after deducting the FICA taxes for Social security and Medicare and the Federal income tax withheld.
The net pay is therefore:
= 4,538 - (4,538 * 6.2%) - (4,538 * 1.45%) - 680.70
= 4,538 - 281.356 - 65.801 - 680.70
= $3,510.14
Both IFRS and U.S. GAAP allow deferred taxes to be: presented as noncurrent on the balance sheet. measured using a substantially enacted tax rate. recognized in equity after a fixed asset revaluation.
Answer:
presented as noncurrent on the balance sheet.
Explanation:
GAAP is an acronym for Generally Accepted Accounting Principles, it was adopted by the U.S. Securities and Exchange Commission (SEC) and is the comprehensive accounting rules and standard used in recording and reporting financial information.
The IFRS is an acronym for International Financial Reporting Standards,International Financial Reporting Standards, it is a set of accounting rules that ensure financial statements are consistent, transparent and comparable globally.
Both IFRS and U.S. GAAP allow deferred taxes to be presented as noncurrent on the balance sheet.
Clonex Labs, Incorporated, uses the weighted-average method in its process costing system. The following data are available for one department for October:
Units Percent Completed Materials Conversion Work in process,
October 1 49,000 90% 60%
Work in process, October 31 27,000 69% 46%
The department started 389,000 units into production during the month and transferred 411,000 completed units to the next department.
Required:
Compute the equivalent units of production for October. Show your complete solution.
Answer:
Materials 429,630
Conversion 423,420
Explanation:
Computation for the equivalent units of production for October.
MATERIALS
Equivalent units of production= 411,000 + (27,000*69%)
Equivalent units of production=411,000 + 18,630
Equivalent units of production= 429,630
CONVERSION
Equivalent units of production= 411,000 +(27,000*46%)
Equivalent units of production =411,000+12,320
Equivalent units of production= 423,420
Therefore the equivalent units of production for October is:
Materials 429,630
Conversion 423,420
which of the following would most likely be considered a short term goal
Bakeing 24 cookies for tomorrows bakesale
Finish knitting a quilt by this sunday
ect
You have an opportunity to work three hours of overtime and earn an extra $99 gross income. However, a total of $32 will be taken out for federal, state, and local taxes. You parked in the parking garage and will have to pay $6.50 total to park for the additional hours. You also didn't pack an extra meal, which you already have in the refrigerator at home; so you will have to spend $12 for food. You will also have to pay $55 for additional daycare for your children. According to the marginal principle and everything else equal (ceteris paribus); will you work the overtime? Why or why not? (Show your work) (10 %)
Answer:
no
the marginal benefit of working overtime in terms of income is less than the marginal cost of working overtime
Explanation:
According to the marginal cost principle, i would be willing to work if marginal benefit exceeds marginal cost
Marginal cost = 32 + 6.5 + 12 + 55 = 105.50
Marginal benefit = 99
the marginal benefit of working overtime in terms of income is less than the marginal cost of working overtime. So, i won't work overtime
Katrina needs to use her communication and conflict management skills every day with her team. What stage of development is her team in?
Answer:
forming
Explanation:
Storming - stage 2
Decisions don't come easily within group. Team members vie for position as they attempt to establish themselves in relation to other team members and the leader, who might receive challenges from team members. Clarity of purpose increases but plenty of uncertainties persist. Cliques and factions form and there may be power struggles. The team needs to be focused on its goals to avoid becoming distracted by relationships and emotional issues. Compromises may be required to enable progress. Leader coaches (similar to Situational Leadership® 'Selling' mode).
As per the description provided, the stage of team development at which Katrina's team would be:
- Storming stage
The team development has been divided into five stages:
FormingStormingNormingPerformingAdjourningThe storming stage is described as the stage where every member comes up with his/her ideas and attempts to impress their peers.
This leads to competition among the members of the team and the development of conflicts.
Therefore, the leaders like Katrina intrude in order to resolve the disagreements and handle competition to ensure that the project goes in the right direction.
Thus, the 'storming' stage is the correct answer.
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TR Company conducts business exclusively in State V, which levies a 5 percent sales and use tax on goods purchased or consumed in-state. This year, TR bought equipment in State B. The cost of the equipment was $90,000, and TR paid $5,400 sales tax to State B. TR also bought machinery in State D. The cost of the machinery was $200,000, and TR paid $7,000 sales tax to State D.
Required:
a. How much use tax does TR Company owe to State V with respect to the equipment bought in State B?
b. How much use tax does TR Company owe to State V with respect to the machinery bought in State D?
Answer:
a. Particulars Amount
Value of property purchased in State B A $90,000
Tax rate in State V B 5%
Pre-Credit use tax C (A*B) $4,500
Credit Sales tax paid to State B D ($5,400)
Use tax owed to State V E (C+D) $0
b. Particulars Amount
Value of property purchased in State D A $200,000
Tax rate in State V B 5%
Pre-credit use tax C (A*B) $10,000
Credit Sales tax paid to State D D ($7,000)
Use tax owed to State V E (C+D) $3,000
Norton Company reported total sales revenue of $55,000, total expenses of $45,000, and net income of $10,000 on its income statement for the year ended December 31, 2010. During 2010, accounts receivable increased by $4,000, merchandise inventory increased by $6,000, accounts payable decreased by $2,000, and depreciation of $18,000 was recorded. Therefore, based only on this information, the net cash flow from operating activities using the indirect method for 2010 was:
Answer:
By calculation the answer is $16,000.
Norton Company reported total sales revenue of $55,000, total expenses of $45,000, and net income of $10,000 on its income statement for the year ended December 31, 2010. To calculate the net cash flow from operating activities using the indirect method.
The net income and then adjust for changes in working capital and non-cash expenses.
Net Income: $10,000
Adjustments for Changes in Working Capital:
Increase in Accounts Receivable: $4,000
Increase in Merchandise Inventory: $6,000
Decrease in Accounts Payable: $2,000
Adjustments for Non-cash Expenses:
Depreciation: $18,000
Net Cash Flow from Operating Activities:
Net Income + Adjustments for Changes in Working Capital + Adjustments for Non-cash Expenses
$10,000 - $4,000 - $6,000 + $2,000 + $18,000
$10,000 - $8,000 + $2,000 + $18,000
Net Cash Flow from Operating Activities = $22,000
Therefore, based on the given information, the net cash flow from operating activities using the indirect method for 2010 was $22,000.
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Grays Company uses a perpetual inventory system. On May 1, the company had inventory of 20 units at a cost of $8 each. On May 3, it purchased 30 units at $10 each. 22 units are sold on May 6. Under the weighted average inventory costing method, what amount will be reported as cost of goods sold for the 22 units that were sold
Answer: $9.20
Explanation:
Using the weighted average inventory costing method, the price is abased on the number of units and their price.
The above inventory cost would be calculated as follows:
= [ (Opening units * Cost of units) + (Units purchased * Cost of purchase) ] / Total units in inventory
= [ (20 * 8) + (30 * 10) ] / (20 units + 30 units)
= [ 160 + 300 ] / 50
= $9.20
New lithographic equipment, acquired at a cost of $859,200 on March 1 of Year 1 (beginning of the fiscal year), has an estimated useful life of five years and an estimated residual value of $96,660. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On the basis of the data presented to the manager, the double-declining-balance method was selected.
Required:
a. Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by (a) the straight-line method and (b) the double-declining-balance method. Round your answers to the nearest whole dollar.
b. Journalize the entry to record the sale assuming the manager chose the double-declining-balance method.
Answer and Explanation:
The calculation and the journal entry is given below:
a)
Depreciation expense= (Original cost - Residual Value) ÷ Estimated useful life
= $(859200 - 96660) ÷ 5
= $152508
Year Depreciation Expense Accumulated depreciation Book Value,
1 $152508 $152508 $706692
2 152508 305016 554184
3 152508 457524 401676
4 152508 610032 249168
5 152508 762540 96660
b)
Depreciation rate is
= 100 ÷ 5 × 2
= 40%
Year Depreciation Expense Accumulated depreciation Book Value,
1 $343680 $343680 $515520
( 40% of 859200)
2 206208 549888 309312
(40% of 515520)
3 123725 673613 185587
4 74235 747848 111352
5 14692 762540 96660
(111352-96660)
c)
The journal entry is
Cash $141422.00
Accumulated depreciation- Equipment $747848.00
To Gain on sale of Equipment $30070.00
To Equipment $859200.00
(Being the sale of equipment is recorded)
Place and convenience are connected by a core linkage. While GoPro was able to get the product into locations where customers could find it, it made an error when production problems forced it to
Question Completion with Options:
a. ignore convenience stores in its distribution network.
b. deliver fewer cameras than were needed during a holiday season.
c. miss the customer connection by emphasizing place over convenience.
d. exert too much power in the distribution network.
Answer:
GoPro
production problems forced it to
b. deliver fewer cameras than were needed during a holiday season.
Explanation:
Shortages are avoided by producers as much as possible in order not to cause disequilibrium in the market. Shortages are not the same as scarcity. They are temporary setbacks when the quantity demanded outstrips the quantity supplied at the equilibrium market price. The backlashes result in lost sales and revenue for suppliers. Shortages may clear ways for competitors to enter the market to meet the unsatisfied demand.
A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On July 28, it paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the merchandise return on July 7 is:
Answer:
Date Account Titles and Explanation Debit Credit
Accounts Payable $1,600
($1,800 - $200)
Merchandise inventory $32
(2% * $1,600)
Cash $1,568
(To record the merchandise return)
A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On July 28, it paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method.
The journal entry to record the merchandise return on July 7 using the perpetual inventory system and the gross method would be as follows:
Date: July 7
Merchandise Returns and Allowances $200
Accounts Payable $200
Explanation:
The Merchandise Returns and Allowances account is used to record returns of merchandise to the supplier. By crediting the Accounts Payable account, it reduces the amount owed to the supplier for the returned merchandise.
In this entry, the company is reducing the Accounts Payable by $200 due to the returned merchandise worth $200.
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