Sales-Related Transactions, Including the Use of Credit Cards

Journalize the entries for the following transactions:

a. Sold merchandise for cash, $20,800. The cost of the goods sold was $12,480. (Record the sale first.)

b. Sold merchandise on account, $8,890. The cost of the goods sold was $5,330. (Record the sale first.)

c. Sold merchandise to customers who used MasterCard and VISA, $114,550. The cost of the goods sold was $68,730. (Record the sale first.)

d. Sold merchandise to customers who used American Express, $53,300. The cost of the goods sold was $31,980. (Record the sale first.)

e. Received and paid an invoice from National Clearing House Credit Co. for $6,450, representing a service fee paid for processing MasterCard, VISA, and American Express sales.

Sales-Related Transactions, Including the Use of Credit Cards

Journalize the entries for the following transactions:

a. Sold merchandise for cash, $25,000. The cost of the goods sold was $17,500. (Record the sale first.)

b. Sold merchandise on account, $98,000. The cost of the goods sold was $58,800. (Record the sale first.)

c. Sold merchandise to customers who used MasterCard and VISA, $475,000. The cost of the goods sold was $280,000. (Record the sale first.)

d. Sold merchandise to customers who used American Express, $63,000. The cost of the goods sold was $39,000. (Record the sale first.)

e. Received and paid an invoice from National Clearing House Credit Co. for $13,450, representing a service fee paid for processing MasterCard, VISA, and American Express sales.

Lets say Iron Man is falling straight down at a rate of 52.7 m/s (about terminal velocity) and he has a mass of 279 kg. Hulk, who has a mass of 521 kg, jumps up at an angle and is traveling at 23.5 m/s at an angle of 50˚ right before catching Iron Man.

A) What is the final magnitude of the velocity of Hulk and Iron Man immediately after Hulk catches him?

(b) At what angle are they falling? Measure from the horizontal

justify the position in your own words.

Pro: The Government Should Balance Its Budget. Government debt places a burden on future generations of taxpayers who must choose to pay higher taxes, cut government spending, or both. Current taxpayers pass the bill for current spending to future taxpayers. Moreover, the macroeconomic effect of a deficit is to reduce national saving by making public saving negative. This increases interest rates, reduces capital investment, reduces productivity and real wages, and thus, reduces future output and income. As a result, deficits raise future taxes and lower future incomes. While deficits are justified during wars and recessions, the increase in the deficit from 1980 through 1995 occurred during peace and prosperity. The most recent deficits may be due to the recession of 2001 and the war on terrorism.

Show the changes for each scenario on a properly drawn and labeled loanable funds market graph. Then describe what happened to real interest rates and the quantity of loanable funds. Each question is worth two points, one point for your GRAPH and one for your description of what happened.

1. The government is preparing to run a deficit in order to pay for a war.

2. Due to worries about the future, Americans significantly increase their savings.

3. A prolonged recession has prompted the government to cut taxes and increase spending.

4. America is experiencing a high rate of inflation. To fight it, the government has increased taxes and cut spending.

5. Explain what crowding out is. In which scenarios could crowding out most likely occur? Explain.

Paradise Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation:

1. The Marketing Department has estimated sales as follows for the remainder of the year (in units):

The selling price of the beach umbrellas is $14 per unit.

2. All sales are on account. Based on past experience, sales are collected in the following pattern:

Sales for June totaled $588,000.

3. The company maintains finished goods inventories equal to 15% of the following month’s sales. This requirement will be met at the end of June.
4. Each beach umbrella requires 4 feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires that the ending inventory of Gilden be equal to 50% of the following month’s production needs. The inventory of Gilden on hand at the beginning and end of the quarter will be:

5. Gilden costs $0.80 per foot. One-half of a month’s purchases of Gilden is paid for in the month of purchase; the remainder is paid for in the following month. The accounts payable on July 1 for purchases of Gilden during June will be $72,920.

Required:

1. Calculate the quantity of Gilden (in feet) that needs to be purchased by month and in total, for the third quarter.

2. Calculate the cost of the raw material (Gilden) purchases by month and in total, for the third quarter.

3. Calculate the expected cash disbursements for raw material (Gilden) purchases, by month and in total, for the third quarter.

Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation: The Marketing Department has estimated sales as follows for the remainder of the year (in units): July 32,000 October 22,000 August 74,000 November 8,500 September 43,000 December 9,000 The selling price of the beach umbrellas is $13 per unit. All sales are on account. Based on past experience, sales are collected in the following pattern: 30% in the month of sale 65% in the month following sale 5% uncollectible Sales for June totaled $299,000. The company maintains finished goods inventories equal to 15% of the following month’s sales. This requirement will be met at the end of June. Each beach umbrella requires 4 feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires that the ending inventory of Gilden be equal to 50% of the following month’s production needs. The inventory of Gilden on hand at the beginning and end of the quarter will be: June 30 76,600 feet September 30 ? feet Gilden costs $0.80 per foot. One-half of a month’s purchases of Gilden is paid for in the month of purchase; the remainder is paid for in the following month. The accounts payable on July 1 for purchases of Gilden during June will be $50,120. Required: 4. Calculate the quantity of Gilden (in feet) that needs to be purchased by month and in total, for the third quarter. 5. Calculate the cost of the raw material (Gilden) purchases by month and in total, for the third quarter. 6. Calculate the expected cash disbursements for raw material (Gilden) purchases, by month and in total, for the third quarter.