On December 1, 2015, Parsons Inc

question 112

Essay

On December 1, 2015, Parsons Inc. sold machinery to a customer for $2,000. Parsons regularly sells machinery. The customer could not pay at the time of sale, but agreed to pay 9 months later, and signed a 9-month note at 12% interest. Give journal entry to record the revenue at the time of sale. Ignore the entry for cost of goods sold.

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Definitions:

Marginal Productivity

is the additional output resulting from using one more unit of a particular input, holding all other inputs constant.

Hourly Wage

The rate of pay employees receive for one hour of work, an important indicator of labor costs and worker compensation in an economy.

Marginal Resource Cost

The change in total cost that comes from producing one additional unit of a good or service.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a factor of production.