Spiders Geophysics Issues an Invoice to Huslia Goldmines for $150,000

question 68

Essay

Spiders Geophysics issues an invoice to Huslia Goldmines for $150,000 on August 5, 2012. The invoice states the payment terms are 5/10, net 30. Huslia pays the invoice on August 14, 2012. How should Spiders record the invoice and its subsequent collection if it uses (a)the gross method or (b)the net method?

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Definitions:

Binomial Distribution

A statistical distribution representing the number of successes in a fixed number of independent trials, with each trial having two possible outcomes.

Symmetric

A shape or distribution where one half is a mirror image of the other half, indicating that the data values are equally spread around the center.

Probability of Success

The likelihood or chance that a specific event or outcome will occur, often represented as a percentage or a value between 0 and 1.

Discrete Random Variable

A variable that can take on a finite or countably infinite number of values, representing outcomes of a random process.