Uniform Supply Accepted a $4,800,90-Day,10% Note from Tracy Janitorial on October

question 27

Multiple Choice

Uniform Supply accepted a $4,800,90-day,10% note from Tracy Janitorial on October 17.What entry should Uniform Supply make on January 15 of the next year when the note is paid? (Assume reversing entries are not made.) (Use 360 days a year.)

• A)Debit Notes Receivable $4,800; debit Interest Receivable $120; credit Sales $4,920.
• B)Debit Cash $4,920; credit Notes Receivable $4,920.
• C)Debit Cash $4,920; credit Interest Revenue $100; credit Interest Receivable $20; credit Notes Receivable $4,800.
• D)Debit Cash $4,920; credit Interest Revenue $20; credit Interest Receivable $100; credit Notes Receivable $4,800.
• E)Debit Cash $4,920; credit Interest Revenue $120; credit Notes Receivable $4,800.

Estimate variable and fixed costs using least-squares regression and high-low methods.

Prepare and interpret a contribution format income statement.

Understand the behavior of mixed costs and their impact on business operations.

Understand the concept of mixed costs and how to categorize costs into fixed and variable.

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Definitions:

Horizontal Sum

The process of adding the quantities demanded by all individuals at different price levels to determine the total market demand at each price.

Vertical Sum

A concept typically used in the context of aggregating demand curves, where the quantities at each price level are summed vertically across different consumers or markets.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price within a given time period.

Real Incomes

The amount of goods and services that can be purchased with money income, taking into account the effects of inflation on purchasing power.