Given the Following Unidentified Journal, Write an Explanation for Each $~~~~~~~~~~~~~~~~~~~~~~~~~~~{ \text { Debits } } ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ { \text { Credits } }$

question 102

Essay

Given the following unidentified journal, write an explanation for each transaction. $~~~~~~~~~~~~~~~~~~~~~~~~~~~{ \text { Debits } } ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ { \text { Credits } }$
$\begin{array} { | c | r | r | r | r | r | r | r | } \hline \text { Date } & \text { Cash } & \begin{array} { c } \text { Sales } \\\text { Dis. }\end{array} & \begin{array} { c } \text { Acc. } \\\text { Rec. }\end{array} & \begin{array} { c } \text { Sales } \\\text { Rev. }\end{array} & \text { Other Acct. } & \text { Amount } & \begin{array} { l } \text { CGS Dr. } \\\text { Inv. Cr. }\end{array} \\\hline \text { Aug. 8 } & 3,000 & & & 3,000 & & & 1,250 \\\hline 10 & 2,500 & & & & \text { Ruff, Capital } & 2,500 & \\\hline 15 & 340 & & 340 & & \text { Lucille Adams } & & \\\hline 27 & 490 & 10 & 500 & & \text { Marshall Field } & & \\\hline 31 & \underline { 6,330 } & \underline { 10 } & \text { 840 } & \text { 3,000 } & \text { Totals } & \underline { 2,500 } & \underline { 1,250 } \\\hline\end{array}$

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Definitions:

Annual Fixed Costs

Costs that do not vary with the level of production or sales volume within a certain range and time period, such as rent, salaries, and insurance.

Turnover

A financial metric indicating the rate at which a company's inventory or assets are replaced through sales in a given period.

Minimum Required Rate

This is the lowest rate of return or interest rate that investors are willing to accept for investment in a project, often influenced by risk and market conditions.

Net Operating Income

The profit realized from a business's operational activities, after deducting operating expenses but before interest and taxes.