Glendale Company Had the Following Transactions in August

question 168

Multiple Choice

Glendale Company had the following transactions in August:
Earned $5,000 of revenues on account;collected $2,000 from a customer for services provided last month;incurred $500 of repair expense and paid cash;paid $300 for rent that it owed from the previous month.
What is the net income in August?

• A)$500
• B)$2,000
• C)$6,500
• D)$4,500

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Definitions:

Remittance

The act of sending money in payment or as a gift, often referring to funds sent by individuals working abroad to family members in their home country.

Cash Discount

A reduction in the price of an item for sale, offered to encourage prompt payment by the buyer.

Complement Rate

The difference between a specific rate and 100%, often used in the context of interest and discount rates.

Discount Date

The specified date on which a discounted transaction must be completed or by which a payment must be made to avail a reduced price.