In-class work Chapter 13

6. Freight designation is F.O.B. Destination. Who is responsible for paying the shipper? 7. Explain what the terms of sale 2/10, n/30 represents? 8. If the merchandiser pays within 10 days of the invoice date how much will they actually pay? Explain your answer. 9. Explain why the merchandiser is not paying sales tax. 10. What information from this invoice would be entered in the Source Document column of the journal? 11.Let's assume the merchandiser (buyer) pays after the discount period expires, how will the vendor (seller) journalize the payment? Add the appropriate amount to the appropriate accounts provided below. Use the picture below to answer the following questions.

Problem 1-20 (AICPA Adapted) Marr Company sells products with reusable and expensive containers. The customer is charged a deposit for each container delivered and receives a refund for each container returned within two years after the year of delivery. Containers held by customers on January 1, 2022 from deliveries in: 2020 2021 Containers delivered in 2022 Containers returned in 2022 from deliveries in: 2020 2021 2022 a. 494,000 b. 584,000 150,000 430,000 c. 674,000 d. 734,000 90,000 250,000 286,000 What amount should be reported as liability for container deposits on December 31, 2022? 580,000 780,000 626,000 Problem 1-21 (IAA) Diversified Company sells perishable electronic products that are shipped in reusable containers. Customers pay a deposit for each container. The deposit is equal to the container cost. Customers receive a refund when the container is returned. a. 595,000 b. 620,000 c. 645,000 d. 290,000 During the current year, deposits collected on containers shipped…

Assuming that Muscat Trading LLC is a furniture trader in Nizwa. The business wants to raise a Credit note. Which of the following statement is correct in regards to a Credit note? a. It will be raised by Muscat Trading LLC to the Suppliers at the time returning the goods due to partial damage of goods b. It will be raised by Muscat Trading LLC at the time of selling the goods to Customers under the credit terms of 2/10 n/60 c. It will be raised by Muscat trading LLC at the time of receiving the goods returned by customers due to damage of goods d. It will be raised by Muscat Trading LLC at the time of Purchase of Merchandise from Suppliers under the credit terms of 2/10 n/30

SOPP of XYZ LimitedThe sales department receives the unstandardised sales order since customer orders are mailed, e-mailed or faxed to the sales department. The sales clerk first converts the unstandardised sales order into the standardised sales order. For this purpose, the sales representative requests the missing information, if any. When the order is received, the sales clerk checks the customer’s creditworthiness of the customer from his computer terminal. Three years ago, the sales clerk requested the accounting department to provide him with a list of customers whose account receivables are written off. The sales clerk is still using this information to check the creditworthiness of the customers. The sales clerk is using the same procedure to check the creditworthiness of the new customers.The customer’s order is rejected if the customer’s credit is not verified. The sales order processing is started after the credit verification. In particular, the sales clerk records the…

SOPP of XYZ LimitedThe sales department receives the unstandardised sales order since customer orders are mailed, e-mailed or faxed to the sales department. The sales clerk first converts the unstandardised sales order into the standardised sales order. For this purpose, the sales representative requests the missing information, if any. When the order is received, the sales clerk checks the customer’s creditworthiness of the customer from his computer terminal. Three years ago, the sales clerk requested the accounting department to provide him with a list of customers whose account receivables are written off. The sales clerk is still using this information to check the creditworthiness of the customers. The sales clerk is using the same procedure to check the creditworthiness of the new customers.The customer’s order is rejected if the customer’s credit is not verified. The sales order processing is started after the credit verification. In particular, the sales clerk records the…

10. In Exhibit 3.6, you see a credit sale to G. H. Allen that is recorded in a paper-based accounting system. On July 28, 2021, Aca Pool Co. received check number 6311 from G. H. Allen in payment of his outstanding invoice. Required: a. Record the receipt of Allen's check on the cash receipts prelist, document number CR645. Your instructor will provide you a blank form. b. Use the prelist as your source document to record this cash receipts transaction in the appropriate 14

Beta Company has incurred the following costs during the current year: Cost of purchases based on vendor's invoices.. Trade discounts on purchases already deducted from the vendor's invoices. • Importation duties and taxes.. • Freight and insurance on purchases. • Other handling costs relating to imports. Salaries of accounting department. • Fees paid to customs broker who processed the importation documents.. • Sales commission paid to sales agents. P 5,000,000 500,000 400,000 1,000,000 100,000 600,000 200,000 300,000 After-sales warranty costs. What is the total cost of purchases? 250,000 A. P5,700,000 В. Р6,100,000 С. Р6,700,000 D. P6,500,000

Brief Exercise 8-4 (Part Level Submission) At the end of 2019, Sheffield Corp. has accounts receivable of $739,200 and an allowance for doubtful accounts of $67,900. On January 24, 2020, the company learns that its receivable from Megan Gray is not collectible, and managernent authorizes a write-off of $6,500. > (a) v (b) X Your answer is incorrect. Try again. What is the cash realizable value of the accounts receivable (1) before the write-off and (2) after the write-off? Before Write-Off After WWrite-Off Cash realizable value 671100 671100 SHOW LIST OF ACCOUNTS

Oriole Company sells merchandise on account for $7800 to Sunland Company with credit terms of 2/13, n/30. Sunland Company returns $1200 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check? $6468 $7668 $7644 $6600

7 Your answer is partially correct. Try again. On January 10, 2019, Swifty Corporation sold merchandise on account to Swifty Co. for $22,000, n/30. On February 9, Swifty Co. gave Swifty Corporation a 12% promissory note in settlement of this account. Prepare the journal entry to record the sale and the settlement of the account receivable. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Jan. 10 v Accounts Receivable 22000 Sales Revenue 22000 Feb. 9 v cash 21560 Sales Discounts 440 SHOW LIST OF ACCOUNTS

PA6. LO 6.3 Review the following transactions for Dish Mart and record any required journal entries. Note that all purchase transactions are with the same supplier. Nov. 5 Dish Mart purchases 26 sets of dishes for $460 per set with cash. Dish Mart purchases 30 sets of dishes for $430 per set on credit. Terms of the purchase are 10/15, n/60, invoice date November 9. Dish Mart discovers 5 of the dish sets are damaged from the November 9 purchase and returns them to the supplier for a full refund. Dish Mart purchases 10 sets of dishes for $450 per set, on credit. Terms of the purchase are 10/10, n/60, invoice date November 14. Dish Mart discovers that 2 of the dish sets from the November 14 purchase and 4 of the dish sets from the November 5 purchase are missing a few dishes but keeps them since the supplier granted an allowance of $50 per set for the November 14 dish sets and $75 per set for the November 5 dish sets. Dish Mart and the supplier have agreed to reduce the amount Dish Mart…

Cobb Company sells gift certificates redeemable only when merchandise is purchased. Upon redemption, Cobb Company Problem 1-16 (AICPA Adapted) recognizes the unearned revenue as realized. Information for the current year: Unearned revenue, January 1 Gift certificates sold Gift certificates redeemed 650,000 2,250,000 1,950,000 100,000 60% Gift certificates unredeemed for a long time Cost of goods sold What amount should be reported as unearned revenue at year-end? а. 510,000 b. 570,000 c. 850,000 d. 950,000

June 14 A debit memo was issued for $6,880.00 to Kawaski USA, for the return of one AU150 ULTRA 150 jet-ski. The body of the jet-ski was damaged during shipping. Kawasaki has agreed to accept the return. There are no freight charges. The AU150 was part of the June 6 purchase on account. Only one entry is required to properly record this transaction. Invoice Number: K4461. Debit Memo Number: DM601. Vendor Number: 24500.

April showers sells goods on credit to most of it's customers. In order to control it's debtor collection system the company maintains a sale ledger control account. In preparing the accounts for the year to 31 October 2019 the accountant discovers that the total of all  the personal accounts in the sales ledger account to sh.12,802 whereas the balance on the sales ledger control account is sh.12,550  Upon investigating the matter, the following  errors were discovered. - sales for the week ending 27 March 2019 amounting to sh 850 had been ommited from the control account. - A debtor account balance of sh 300 had not been included in the list of balance . - Cash received of sh. 750 had been entered in a personal account as sh. 570. - Discounts allowed totalling sh.100 had not been entered in the control account. - A personal account balance had been undercast by sh.200. - A contra item of sh.400 with the purchase ledger had not been entered in the control account. - A bad debt of…

April showers sells goods on credit to most of it's customers. In order to control it's debtor collection system the company maintains a sale ledger control account. In preparing the accounts for the year to 31 October 2019 the accountant discovers that the total of all  the personal accounts in the sales ledger account to sh.12,802 whereas the balance on the sales ledger control account is sh.12,550 Upon investigating the matter, the following  errors were discovered.- sales for the week ending 27 March 2019 amounting to sh 850 had been ommited from the control account.- A debtor account balance of sh 300 had not been included in the list of balance .- Cash received of sh. 750 had been entered in a personal account as sh. 570.- Discounts allowed totalling sh.100 had not been entered in the control account.- A personal account balance had been undercast by sh.200.- A contra item of sh.400 with the purchase ledger had not been entered in the control account.- A bad debt of sh.500 had…

system. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Jan. 2 5 e to search 6 11 Sarasota sold $39,000 of goods to Xtra Inc., terms n/45, FOB destination. The cost of the goods sold was $21,840. Sarasota expected a return rate of 15%. The appropriate company paid freight costs of $780. Xtra returned $5,100 of the merchandise purchased from Sarasota on January 2, because it was not needed. The cost of the merchandise returned was $2,856, and it was restored to inventory. Sarasota received the balance due from Xtra. Date Account Titles and Explanation Jan. 2 Accounts Receivable (To record credit cale) JU! Debit 39000 Credit 22°C Sunny AGE

Provided below is a list of several companies' revenue recognition policies. Revenue Recognition Policy A The performance obligation is satisfied with the passage of time. Interest is earned with the passage of time. Each period, income is accrued on loans even if customers have not yet paid the interest. B The performance obligation occurs when the customer takes the merchandise (for in-store sales) or when the goods are delivered (for online sales). The company estimates product returns and reports an allowance at time of sale. C The performance obligation is fulfilled when the customer takes the completed equipment. Revenues for financial or insurance services are recognized when the services are provided. D The performance obligation is satisfied as the company builds and completes projects for customers. Revenue is recognized for long-term construction contracts based on the percentage of completion. E The performance obligation occurs when the customer takes delivery of the…

PA6. Review the following transactions for Dish Mart and record any required journal entries. Note that all purchase transactions are with the same supplier. Nov. 5            Dish Mart purchases 26 sets of dishes for $460 per set with cash. Nov. 9 Dish Mart purchases 30 sets of dishes for $430 per set on credit. Terms of the purchase are 10/15, n/60, invoice date November 9. Nov. 13           Dish Mart discovers 5 of the dish sets are damaged from the November 9 purchase and returns them to the supplier for a full refund. Nov. 14           Dish Mart purchases 10 sets of dishes for $450 per set, on credit. Terms of the purchase are 10/10, n/60, invoice date November 14. Nov. 15           Dish Mart discovers that 2 of the dish sets from the November 14 purchase and 4 of the dish sets from the November 5 purchase are missing a few dishes but keeps them since the supplier granted an allowance of $50 per set for the November 14 dish sets and $75 per set for the November 5 dish sets. Dish…

Cobb Department Store sells gift certificates redeemable only when merchandise is purchased. These gift certificates have no expiration date. Upon redemption or expiration, the entity recognizes the unearned revenue as realized. Information for the current year is as follows: Unearned revenue, January 1, 2013 Gift certificates sold 650,000 2,250,000 1,950,000 100,000 Gift certificates redeemed Gift certificates expected not to be redeemed Cost of goods sold 60% On December 31, 2013, what amount should be reported as unearned revenue?

Bramble Company sells merchandise on account for $4800 to Cullumber Company with credit terms of 1/10, n/30. Cullumber Company returns $1100 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check? O $4663 O $4752 O $3700 O $3663 Save for Later Attempts: 0 of 1 used Submit Answer

An entity offering products with an offer to refund the cost of the purchase within 30 days after the sale if the customer is not satisfied with the products. Revenues should be recognized at the time of sale with an offset to revenue for possibility of returned items.   TRUE OR FALSE

11 Motor Sales Inc. signs an instrument that promises to pay National Parts Company a certain price, with interest, for a shipment of auto parts. It is necessary to know when the instrument is due in order to   a. know when the interest will accrue.     b. all of the choices.     c. determine the value of the instrument.     d. calculate when a statute of limitations may apply. 12 To operate practically as a substitute for cash or a credit device, a negotiable instrument must be   a.  conditional without the risk of being collectable.     b.  qualified with a promise to set aside the qualification.     c.  payable without recourse.     d.  transferable without the danger of being uncollectable     Sport Souvenir LLC orders a gross of printed shirts from T-Shirt Company. To finance the purchase, the buyer signs a note to pay the seller from the funds paid to the buyer on the sale of the…