castielwife4394
30.05.2020 •
Business
The Polishing Division purchases 27,000 handles from the Extruding Division and completes the hand tools. An outside supplier, Venture Steel, has offered to supply 27,000 units of the handle to the Polishing Division for $1.81 per unit. The Extruding Division currently has idle capacity that cannot be used. What is the cost impact to Martin Company as a whole of purchasing from Venture Steel? (CMA adapted)
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Ответ:
Interest amount: 8%
Months left in the year: 5
To solve:
Multiply the note amount by the percentage and the amount of months left out of the year.
$6,000 x 8% x 5/12 = $200
Journal Entry:
Interest Receivable $200
Interest Revenue $200