On October 3, Josh Antonio, a Carpenter, Received a Cash

question 143

Multiple Choice

On October 3, Josh Antonio, a carpenter, received a cash payment for services previously billed to a client.Josh paid his telephone bill, and he also bought equipment on credit.For the three transactions, at least one of the entries will include a

• A)credit to Retained Earnings.
• B)credit to Notes Payable.
• C)debit to Accounts Receivable.
• D)credit to Accounts Payable.

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Definitions:

Willingness to Pay

The maximum amount an individual or organization is willing to spend to acquire a good or service.

Consumer Surplus

The discrepancy between the financial amount consumers intend to spend on a good or service and the amount they end up spending.

Peanuts

A legume crop grown mainly for its edible seeds, which are high in protein, fat, and various healthy nutrients.

Firm's Willingness

Firm's willingness refers to a company's readiness or inclination to engage in certain activities, such as investing, producing, or changing pricing strategies, based on expected outcomes.