Holiday Decorations Unique has been approached by the community college to make special decorations for the faculty and staff. The college is willing to buy 5,000 Christmas ornaments with their own design for $6.00 each. The company normally sells its decorations for $12.00 each. A break down of their costs is as follows:
Should Holiday Decorations Unique accept the special order made by the college? The company has enough excess capacity to make this order.
Definitions:
Accounts Receivable Subsidiary Ledger
A detailed ledger that tracks individual accounts receivable transactions and balances for customers.
Cash Receipts Journal
An accounting journal specifically used to record all receipts of cash, detailing the source of each receipt for a given period.
Record Payment
The process of documenting the payment of a bill or an obligation in the business’s financial records.
Revenue Journal
The revenue journal is a ledger book or digital record in accounting that tracks all incoming earnings or revenue transactions generated by business operations.
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