The following information relates to a business for a period.
Selling price per unit: 100; Variable costs per unit: 60; Total fixed costs: 90,000; Net profit: 15,000. How many units were sold in the period?
(Please see attachment for full question)
<br>I The following information relates to a business for a period.
<br>selling price per unit
<br>100 ($100 - $60)X - $90,000 = $15,000
<br>variable costs per unit
<br>60 Where X equals the number sold.
<br>total fixed costs
<br>90 000 You can plug in the 4 answers to find which one is right.
<br>How many units were sold in the period?
<br>A 1500 B 1750 C 2250 D 2625
<br>2 A customer paid a deposit in advance for goods to be supplied at a later date. How should this be recorded in the seller's books?
<br> Debit Credit
<br>A Cash Customer
<br>B Cash Sales
<br>C Customer Prepayment
<br>D Customer Sales
<br>I would answer D because you would debit (increase) the customers account and credit (reduce) sales.
<br>Once the product is shipped, you would do the opposite and thereby increase sales.
<br>3 A trial balance at 30 April 2003, before making end of year adjustments, showed:
<br> debit Credit
<br>Trade debtors $17,800
<br>Provision for doubtful debts $580
<br>Provision of 2% of trade debtors $360
<br>- ($800) $940 Total Answer is C
<br>At 30 April 2003 it was decided to write off a bad debt of $800 and to make a ...