Bolo Company purchased inventory on account in the amount of $500. Then, Bolo sold the inventory to a customer for $1,000. Bolo extended credit to this customer. In other words, the sale was made on account. Related to these two transactions, how much did Bolo record as accounts payable? How much did Bolo record as accounts receivable?
Answer to relevant QuestionsCompany A had sales of $1,500 during the year and collected them all in cash. Company B, on the other hand, had sales of $1,500 during the year but collected only $1,000 cash with the remaining $500 sales on account. Both ...For each of the following line items, give the financial statement on which it would appear. Salary expense ......... Service revenueSales revenue ......... Accounts payableCost of goods sold ....... Net cash from financing ...Suppose Betty’s Beauty Supplies borrowed $40,000 from the local bank, with payments of principal and interest due each month. For the month of August, Betty’s paid the bank $4,000 of principal and $200 interest. How ...Use the balance sheet you prepared in E2-26A to compute the current ratio at December 31, 2012.The following data was taken from the 2011 and 2010 financial statements of Shelby Pet Supplies Company. Calculate the current ratio for each year. What happened to the company’s liquidity from 2010 to2011?
Post your question