Answer:
Payable days
= Accounts payable/Cost of goods sold x 365 days
= $17 million/$135 million x 365 days
= 46 days
Explanation:
Payable days could be calculated as the ratio of accounts payable and cost of goods sold multiplied by number of days in a year. Accounts payable in the current year is $17 million and cost of goods sold amounted to $135 million.
$1500 will be paid by the Insurance policy as the accident has lead to $725 damage to John’a car which will be covered up to $500 (full amount that insurance can pay), leaving him to pay off the rest. As for the liability that is worth $1525 so insurance will pay what it can which is $1000, leaving John to pay off the remaining amount. So the insurance is paying $1500 ($500 comprehensive coverage plus $1000 liability coverage)
Answer:
Option (3) is correct.
Explanation:
Given that,
cost of purchasing Tetter Company's 12% bonds = $50,000
Accrued interest expense = $2,000
The journal entry is as follows:
On April 1,
Investments in debt securities - Tetter Company bonds A/c Dr. $50,000
Interest receivable A/c Dr. $2,000
To Cash $52,000
(To record the purchase of the bonds)
