Debit Card: It is a type of card issued for making payments and the amount gets deducted from the payer’s account itself, thus eliminates the use of cash as well as cheques in order to make payments and thus provides convenience to its holders. Also, a particular limit is specified for overdraft coverage to help customers when they fall short of funds apart from the amount they actually have in their account balances. In addition to this, they have daily limits for the amounts to be utilized through them. Credit Card: Credit card is issued to give option to the holders to borrow funds at a specified point-of-sale. These are used for financing in short term and charge interest. Generally, interest is charged after one month after purchase and borrowings limits are based upon individual credit ratings. To explain: The way of deriving benefits from customers in lieu of allowing them to use credit cards

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Answer 1

Question

Chapter 9, Problem 1DQ

To determine

Debit Card:

It is a type of card issued for making payments and the amount gets deducted from the payer’s account itself, thus eliminates the use of cash as well as cheques in order to make payments and thus provides convenience to its holders. Also, a particular limit is specified for overdraft coverage to help customers when they fall short of funds apart from the amount they actually have in their account balances. In addition to this, they have daily limits for the amounts to be utilized through them.

Credit Card:

Credit card is issued to give option to the holders to borrow funds at a specified point-of-sale. These are used for financing in short term and charge interest. Generally, interest is charged after one month after purchase and borrowings limits are based upon individual credit ratings.

To explain: The way of deriving benefits from customers in lieu of allowing them to use credit cards

Expert Solution & Answer

Explanation of Solution

The credit card issuers earn profits by allowing the customers to use it in the following manner:

• Whenever the holder makes payment by using his or her credit card a certain percentage of purchases made through the card gets accumulated in interchange fees and most of the amount goes to the issuing bank and the other part is for the party managing the credit card account.

• The fees collected by the credit card issuers including annual fees, late fees, and balance transfer fees and other similar services.

• Interest payments pool in lot of revenue for the credit card issuers especially in the cases of non-payment.

• The issuers also earn profits as sales commission on account of selling customer data to other business entities.

Hence, the credit card issuers earn many benefits by allowing the customers to utilize the credit card facilities.

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Carla Vista Manufacturing Company uses a job order cost system and keeps perpetual inventory records. June 1 Purchased raw materials for $23,600 on account. 8 Raw materials requisitioned by production: $9,440 Direct materials Indirect materials 1,180 Paid factory utilities, $2,478 and repairs for factory equipment, $9,440. 15 25 Incurred $122,000 of factory labor. 25 Time tickets indicated the following: Direct Labor (7,000 hrs x $14 per hr) $98,000 Indirect Labor (3,000 hrs x $8 per hr) 24,000 $122,000 45 25 Applied manufacturing overhead to production based on a predetermined overhead rate of $7 per direct labor hour worked. 28 30 Goods costing $18,020 were completed in the factory and were transferred to finished goods inventory. Goods costing $15,020 were sold for $20,020 on account. Prepare journal entries to record the above transactions during the month of June. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit…

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Cline Manufacturing Company uses a job order system and maintains perpetual inventory records. Indicate the the appropriate account(s) to be debited and credited for the transactions listed below. (On multiple entries enter answers in alphabetical order.) Transactions 1. Raw materials were purchased on account. 2. Issued a check to Dixon Machine Shop for repair work on factory equipment. 3. Direct materials were requisitioned for Job 280. 4. Factory labor was paid as incurred. 5. Recognized direct labor and indirect labor used. 6. The production department requisitioned 7. indirect materials for use in the factory. Manufacturing overhead was applied to production based on a predetermined overhead rate of $8 per labor hour. 8. Goods that were completed were transferred to finished goods inventory. 9. Goods costing $80,000 were sold for $105,000 on account. 10. Paid for raw materials purchased previously on account. Account(s) Debited

Answer 2

Question

Chapter 9, Problem 1DQ

To determine

Debit Card:

It is a type of card issued for making payments and the amount gets deducted from the payer’s account itself, thus eliminates the use of cash as well as cheques in order to make payments and thus provides convenience to its holders. Also, a particular limit is specified for overdraft coverage to help customers when they fall short of funds apart from the amount they actually have in their account balances. In addition to this, they have daily limits for the amounts to be utilized through them.

Credit Card:

Credit card is issued to give option to the holders to borrow funds at a specified point-of-sale. These are used for financing in short term and charge interest. Generally, interest is charged after one month after purchase and borrowings limits are based upon individual credit ratings.

To explain: The way of deriving benefits from customers in lieu of allowing them to use credit cards

Expert Solution & Answer

Explanation of Solution

The credit card issuers earn profits by allowing the customers to use it in the following manner:

• Whenever the holder makes payment by using his or her credit card a certain percentage of purchases made through the card gets accumulated in interchange fees and most of the amount goes to the issuing bank and the other part is for the party managing the credit card account.

• The fees collected by the credit card issuers including annual fees, late fees, and balance transfer fees and other similar services.

• Interest payments pool in lot of revenue for the credit card issuers especially in the cases of non-payment.

• The issuers also earn profits as sales commission on account of selling customer data to other business entities.

Hence, the credit card issuers earn many benefits by allowing the customers to utilize the credit card facilities.

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Answer 3

Question

Chapter 9, Problem 1DQ

To determine

Debit Card:

It is a type of card issued for making payments and the amount gets deducted from the payer’s account itself, thus eliminates the use of cash as well as cheques in order to make payments and thus provides convenience to its holders. Also, a particular limit is specified for overdraft coverage to help customers when they fall short of funds apart from the amount they actually have in their account balances. In addition to this, they have daily limits for the amounts to be utilized through them.

Credit Card:

Credit card is issued to give option to the holders to borrow funds at a specified point-of-sale. These are used for financing in short term and charge interest. Generally, interest is charged after one month after purchase and borrowings limits are based upon individual credit ratings.

To explain: The way of deriving benefits from customers in lieu of allowing them to use credit cards

Expert Solution & Answer

Explanation of Solution

The credit card issuers earn profits by allowing the customers to use it in the following manner:

• Whenever the holder makes payment by using his or her credit card a certain percentage of purchases made through the card gets accumulated in interchange fees and most of the amount goes to the issuing bank and the other part is for the party managing the credit card account.

• The fees collected by the credit card issuers including annual fees, late fees, and balance transfer fees and other similar services.

• Interest payments pool in lot of revenue for the credit card issuers especially in the cases of non-payment.

• The issuers also earn profits as sales commission on account of selling customer data to other business entities.

Hence, the credit card issuers earn many benefits by allowing the customers to utilize the credit card facilities.

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Answer 4

Question

Chapter 9, Problem 1DQ

To determine

Debit Card:

It is a type of card issued for making payments and the amount gets deducted from the payer’s account itself, thus eliminates the use of cash as well as cheques in order to make payments and thus provides convenience to its holders. Also, a particular limit is specified for overdraft coverage to help customers when they fall short of funds apart from the amount they actually have in their account balances. In addition to this, they have daily limits for the amounts to be utilized through them.

Credit Card:

Credit card is issued to give option to the holders to borrow funds at a specified point-of-sale. These are used for financing in short term and charge interest. Generally, interest is charged after one month after purchase and borrowings limits are based upon individual credit ratings.

To explain: The way of deriving benefits from customers in lieu of allowing them to use credit cards

Expert Solution & Answer

Explanation of Solution

The credit card issuers earn profits by allowing the customers to use it in the following manner:

• Whenever the holder makes payment by using his or her credit card a certain percentage of purchases made through the card gets accumulated in interchange fees and most of the amount goes to the issuing bank and the other part is for the party managing the credit card account.

• The fees collected by the credit card issuers including annual fees, late fees, and balance transfer fees and other similar services.

• Interest payments pool in lot of revenue for the credit card issuers especially in the cases of non-payment.

• The issuers also earn profits as sales commission on account of selling customer data to other business entities.

Hence, the credit card issuers earn many benefits by allowing the customers to utilize the credit card facilities.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 9, Problem 1DQ

To determine

Debit Card:

It is a type of card issued for making payments and the amount gets deducted from the payer’s account itself, thus eliminates the use of cash as well as cheques in order to make payments and thus provides convenience to its holders. Also, a particular limit is specified for overdraft coverage to help customers when they fall short of funds apart from the amount they actually have in their account balances. In addition to this, they have daily limits for the amounts to be utilized through them.

Credit Card:

Credit card is issued to give option to the holders to borrow funds at a specified point-of-sale. These are used for financing in short term and charge interest. Generally, interest is charged after one month after purchase and borrowings limits are based upon individual credit ratings.

To explain: The way of deriving benefits from customers in lieu of allowing them to use credit cards

Expert Solution & Answer

Explanation of Solution

The credit card issuers earn profits by allowing the customers to use it in the following manner:

• Whenever the holder makes payment by using his or her credit card a certain percentage of purchases made through the card gets accumulated in interchange fees and most of the amount goes to the issuing bank and the other part is for the party managing the credit card account.

• The fees collected by the credit card issuers including annual fees, late fees, and balance transfer fees and other similar services.

• Interest payments pool in lot of revenue for the credit card issuers especially in the cases of non-payment.

• The issuers also earn profits as sales commission on account of selling customer data to other business entities.

Hence, the credit card issuers earn many benefits by allowing the customers to utilize the credit card facilities.

Answer 6

Chapter 9, Problem 1DQ

To determine

Debit Card:

It is a type of card issued for making payments and the amount gets deducted from the payer’s account itself, thus eliminates the use of cash as well as cheques in order to make payments and thus provides convenience to its holders. Also, a particular limit is specified for overdraft coverage to help customers when they fall short of funds apart from the amount they actually have in their account balances. In addition to this, they have daily limits for the amounts to be utilized through them.

Credit Card:

Credit card is issued to give option to the holders to borrow funds at a specified point-of-sale. These are used for financing in short term and charge interest. Generally, interest is charged after one month after purchase and borrowings limits are based upon individual credit ratings.

To explain: The way of deriving benefits from customers in lieu of allowing them to use credit cards

Expert Solution & Answer

Explanation of Solution

The credit card issuers earn profits by allowing the customers to use it in the following manner:

• Whenever the holder makes payment by using his or her credit card a certain percentage of purchases made through the card gets accumulated in interchange fees and most of the amount goes to the issuing bank and the other part is for the party managing the credit card account.

• The fees collected by the credit card issuers including annual fees, late fees, and balance transfer fees and other similar services.

• Interest payments pool in lot of revenue for the credit card issuers especially in the cases of non-payment.

• The issuers also earn profits as sales commission on account of selling customer data to other business entities.

Hence, the credit card issuers earn many benefits by allowing the customers to utilize the credit card facilities.

Answer 7

Chapter 9, Problem 1DQ

To determine

Debit Card:

It is a type of card issued for making payments and the amount gets deducted from the payer’s account itself, thus eliminates the use of cash as well as cheques in order to make payments and thus provides convenience to its holders. Also, a particular limit is specified for overdraft coverage to help customers when they fall short of funds apart from the amount they actually have in their account balances. In addition to this, they have daily limits for the amounts to be utilized through them.

Credit Card:

Credit card is issued to give option to the holders to borrow funds at a specified point-of-sale. These are used for financing in short term and charge interest. Generally, interest is charged after one month after purchase and borrowings limits are based upon individual credit ratings.

To explain: The way of deriving benefits from customers in lieu of allowing them to use credit cards

Answer 8

Expert Solution & Answer

Explanation of Solution

The credit card issuers earn profits by allowing the customers to use it in the following manner:

• Whenever the holder makes payment by using his or her credit card a certain percentage of purchases made through the card gets accumulated in interchange fees and most of the amount goes to the issuing bank and the other part is for the party managing the credit card account.

• The fees collected by the credit card issuers including annual fees, late fees, and balance transfer fees and other similar services.

• Interest payments pool in lot of revenue for the credit card issuers especially in the cases of non-payment.

• The issuers also earn profits as sales commission on account of selling customer data to other business entities.

Hence, the credit card issuers earn many benefits by allowing the customers to utilize the credit card facilities.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 9 - Prob. 1DQ Ch. 9 - Why does the direct write-off method of accounting...Ch. 9 - Prob. 3DQ Ch. 9 - Why might a business prefer a note receivable to...Ch. 9 - Prob. 5DQ Ch. 9 - Prob. 6DQ Ch. 9 - Prob. 7DQ Ch. 9 - Prob. 8DQ Ch. 9 - Prob. 9DQ Ch. 9 - Prob. 10DQ

Explanation of Solution

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Chapter 9 Solutions