To answer, "b. offer rebates and incentives for customers who purchase washing machines." Increasing a company's productivity must be strategically planned, ensuring there is demand in line with economic expectations. If a firm expands its capacity without sufficient demand, the outcome can be detrimental, especially during economic downturns. The described firm faces idle capacity and, thus, it is prudent to provide price incentives like discounts to encourage demand for washing machines, allowing the business to maintain operations until the economy rebounds.
$315,000 is required to settle the note payable. Upon signing the note, the accounting records would show: Cash of $300,000 recorded as a debit and Note Payable of $300,000 recorded as a credit. The interest accumulating over the note receivable during this period amounts to: Interest Expense $15,000 (debit) and Note Payable $15,000 (credit), calculated as: Interest Expense = $300,000 × 5% = $15,000. Therefore, on June 1, 2019, the total due including the Note Payable and Interest would be recorded as: Note Payable $315,000 (debit) and Cash $315,000 (credit).
