Using the gross method of recording sales discounts, customers with outstanding accounts receivable balances on December 31, 20Y7, will pay their balances in 20Y8. Assume that Calvin Hobbs pays his December 31, 20Y7 account receivable of $8,000 on January 8, 20Y8, and takes a 2/10 sales discount. The payment should be recorded as follows: a. a debit of $7,840 to Cash, a debit of $160 to Allowance for Sales Discounts, and a credit of $8,000 to Accounts Receivable Calvin Hobbs
b. a credit of $8,000 Cash, a credit of $160 to Allowance for Sales Discounts, and a debit of $8,160 to Accounts Receivable-Calvin Hobbs
c. a debit of $8,000 to cash and a credit of $8,000 to Accounts Receivable-Calvin Hobbs
d. a debit of $7,840 to Cash, a debit of $160 to Sales, and a credit of $8,000 to Accounts Receivable-Calvin Hobbs.

Jordan, inc. sells fireworks. the company’s marketing director developed the following cost of goods sold budget for april, may, june, and july. april may june july budgeted cost of goods sold $62,000 $72,000 $82,000 $88,000 jordan had a beginning inventory balance of $3,000 on april 1 and a beginning balance in accounts payable of $14,600. the company desires to maintain an ending inventory balance equal to 15 percent of the next period’s cost of goods sold. jordan makes all purchases on account. the company pays 65 percent of accounts payable in the month of purchase and the remaining 35 percent in the month following purchase. required prepare an inventory purchases budget for april, may, and june. determine the amount of ending inventory jordan will report on the end-of-quarter pro forma balance sheet. prepare a schedule of cash payments for inventory for april, may, and june. determine the balance in accounts payable jordan will report on the end-of-quarter pro forma balance sheet.

Paid-in-capital in excess of par represents the amount of proceeds a. from the original sale of common stock b. in excess of the par value from the original sale of common stock c. at the current market value of the common stock d. at the curent book value of the common stock

Xinhong company is considering replacing one of its manufacturing machines. the machine has a book value of $39,000 and a remaining useful life of 5 years, at which time its salvage value will be zero. it has a current market value of $49,000. variable manufacturing costs are $33,300 per year for this machine. information on two alternative replacement machines follows. alternative a alternative b cost $ 115,000 $ 117,000 variable manufacturing costs per year 22,900 10,100 1. calculate the total change in net income if alternative a and b is adopted. 2. should xinhong keep or replace its manufacturing machine