Prepare the Journal Entries for the Following Transactions

question 7

Essay

Prepare the journal entries for the following transactions:
a. Sold $150,000 of goods to Georgia Co. on account.
b. Collected $50,000 from Georgia Co.
c. Accepted a $100,000, one-year, 10% note from Georgia Co. for the amount remaining on the account.
d. After 60 days, discounted the note from Georgia Co. at First National Bank at a 12% interest rate.
Required:
Prepare the journal entries for each transaction.

Explain the principles and processes involved in activity management.

Calculate costs using activity-based costing principles, such as per order or per batch.

Identify the conditions under which activity-based costing offers the most benefits.

Recognize signals indicating the need for a new product costing system.

---

Definitions:

Sales Growth

The increase in sales over a specific period, indicating the performance and expansion potential of a business.

Planner's Assumptions

Fundamental assumptions made by planners about the future conditions and variables that will affect project outcomes or business conditions.

Implied Hypothesis

An unstated hypothesis thought to influence a situation or experiment's outcome indirectly.

Null Hypothesis

A hypothesis that assumes no significant difference or effect in a study, which researchers seek to test against the alternative hypothesis.