On March 5,Blowout Sales Makes $22,500 in Sales on the Company's

question 72

Essay

On March 5,Blowout Sales makes $22,500 in sales on the company's own credit cards.The cost of merchandise sold is $16,825.Journalize the sales and recognition of the cost of merchandise sold.

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Definitions:

Discount Rate

The interest rate used to determine the present value of future cash flows or to discount future obligations.

Maturity

The predetermined date on which a financial instrument, loan, or security reaches its final payment, at which point the principal amount must be repaid.

Zero-Coupon Bond

A debt security that doesn't pay periodic interest, sold at a discount from its face value, and repays the face value at maturity.

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, considering both the interest payments and the capital gain or loss.