A credit sale of $4,000 is made on April 25, terms 2/10, n/30, on which a return of $250 is granted on April 28. What amount is received as payment in full on May 4? O a) $3,920 O b) $4,000 O c) $3,750 O d) $3,675

A credit sale of $4,000 is made on April 25, terms 2/10, n/30, on which a return of $250 is granted on April 28. What amount is received as payment in full on May 4? O a) $3,920 O b) $4,000 O c) $3,750 O d) $3,675

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter8: Liabilities And Stockholders' Equity

Section: Chapter Questions

Problem 1SEQ: A business issued a $5,000, 60-day, 12% note to the hank. The amount due at maturity is: A. $4,900...

See similar textbooks

Related questions

Q: nY Feported the following shareholders equity vis Com Reacquired 10,000 shares at P30 per share to b...

A: Retained earnings (RE) are those earnings or amount of money which is kept aside by business from th...

Q: 20. The statement of changes in equity discloses the withdrawals during the period. O True O False

A: Solution Explanation- Statement of changes of equity represents the share capital ,retained earning ...

Q: When debt investment was sold, total cash received is always equals to the sum of the selling price,...

A: Debt Investment: Assumption that the borrower will repay the investment with interest (debt investme...

Q: 3) Misnap is a manufacturing firm. In April, it had a beginning inventory balance in its raw materia...

A: Lets understand the basics. For calculating raw material used, we need to use below formula. Raw mat...

Q: nning Medical Clinic has budgeted the following cash flows. January $105,000 February $111,000 March...

A: Cash budget is the budget which represent cash inflows and disbursements during a particular period ...

Q: rovide the missing data in the following table for a distributor of martial arts products: A...

A: By applying this 3 formula Sales Formula = Turnover x Average operating asset Net operating incom...

Q: Identify false statement(s) about estimating ending inventory using the retail inventory method. 1...

A: As per FIFO method, it is assumed that inventory purchased first is sold out first and ending invent...

Q: A VAT-registered entity is engaged in the business of construction. For each construction project, t...

A: VAT is charged at 12% on the amount received by the clients.

Q: On January 2, 2021 PAMIGAY CORP paid P380,000 cash and issued 120,000 new shares of its P5 par value...

A: Calculation of Total Cash to be shown in the Consolidated Balance Sheet Cash Balance of Pamigay Corp...

Q: Crane Ltd. incurs these expenditures in purchasing a truck: invoice price $42,860; installation of a...

A: Note: Cost of Accident insurance and Motor vehicle license is not added to the cost of the assets. T...

Q: amounted to P126,700. The foods and drinks b nightclub are being served by Tiberio, a non-VA uring t...

A: Amusement tax refers to the form of tax levied on any source of commercial entertainment services pr...

Q: GH Environmental provides cost-effective solutions for managing regulatory requirements and environm...

A: Interest Expense=Amount of Note×Interest Rate

Q: Which of the following is liable for the 3% percentage tax under section 116 of the NIRC?

A: Percentage Tax is a form of Sales Tax in Philippines computed on the basis of gross sales, receipts ...

Q: Tweedle Jackets make and sell Tweed Jackets, which never go out of style. Tweedle Jackets uses a pro...

A: The reason why the company is determining the actual cost for the month and the budgeted cost for th...

Q: May 21st Transaction: Bought a laptop, paying $15751 cash as a down payment and signed a 8 month $52...

Q: Question #2 Gloria's a food manufacturer is trying to make an assessment of its operations for the p...

A: As Given in the question, Gloria's, a food company, is attempting to review its activities over the ...

Q: Explain differential analysis

A: Differential Analysis involves understanding the purpose of different costs that may arise from diff...

Q: The following are several transactions for Halpin Advertising Company.a. Purchased $1,000 of supplie...

A: Revenue and costs are recognized and documented as they occur under accrual accounting, but cash bas...

Q: XYZ Group, Inc. has two companies – X Ltd, which is operating at just above 50% capacity, and Y Ltd,...

A: Transfer Price can be defined as the price at which one department transfers the product to another ...

Q: Elle Woods is trying to figure out what combination of bags of M&Ms and bags of Cheetos she should b...

A: Marginal Utility- Marginal utility is the additional satisfaction a customer gets from having one ad...

Q: Diana acquires, for $65,000, and places in service a 5-year class asset on December 19, 2021. It is ...

A: Cost recovery refers to the deduction of cost of an asset, used in business or for production to gen...

Q: Cash collections for Wax On Candles found that 60% of sales were collected in the month of the sale,...

A: Solution: Cash collection is done on the basis of percentages of collection in the respective months...

Q: Fundamentals in Accountancy, Business and Management 1 Journalizing Entries INSTRUCTION: Journalize ...

A: Journals: Journal entries refer to the primary books of accounts in which used to record business ...

Q: Walmart Inc. is an American multinational retail corporation that operates a chain of hypermarkets, ...

A: Note: As per the norms of Bartleby, in case of questions with multiple sub parts, the first 3 subpar...

Q: On July 19, 2021, SUNOB acquired 60% of the outstanding shares of YSAE. The business combination res...

A: When Non controlling interest is measured at fair value them the resulting goodwill or gain on barga...

Q: This project covers general partnership basis issues including computation of partners' adjusted bas...

A: The significant tax implication for the year are summarized by calculating the Adjusted tax basis of...

Q: Debt investments with an objective of collecting contractual cash flows is classified as: Group of a...

A: Debt investments are those instruments which have a specified time period and interest is paid by th...

Q: Example 4-12 GROSSING-UP. Cotter Company wants to award a $4,000 bonus to Donna D'Amico. In additio...

A: In this question, we have to find out the gross Bonus and net bonus amount and the blanks given to ...

Q: (a) Briefly explain TWO (2) methods of payment for the issuance of share. (b) MOLLY Berhad decided t...

A: Since you have asked multiple questions, we will solve the first question for you. If you want any s...

Q: Drake Company produces a single product. Last year's income statement is as follows: Sales (21,000 ...

A: Break even point : It refers to that point where total cost is equal to total revenue, i e. It is ...

Q: Trotman Company had three intangible assets at the end of 2019 (end of the accounting year): Comp...

A: 1. Amortization of Intangible assets have been correctly stated based On straight line method. 2. ...

Q: On April 1, 2017 the Reba Company purchased 10%, $800,000 bonds of the Trading Up Company at par plu...

A: investment in trading securities are to be accounted as per Fair value through profit or loss accoun...

Q: Enter the following transactions, completing the double entry in the books for the month of May 20

A: These are the accounting transactions that are having a monetary impact on the financial statement o...

Q: On 30 June 2019, Swan Ltd acquired a machine for $180 000 cash, with an expected useful life of 9 ye...

A: When a company revaluates the value of its fixed assets on the basis of Fair Market Value, the diffe...

Q: QUESTION: if Chiz is non-VAT registered, how much is the business tax payable?

A: Non Vat Register For the Non Vat register whose gross sales / gross receipts which are not crossed o...

Q: Determine the treatment of a loss on rental property under the following facts: Basis $650,000 FMV b...

A: Calculation of loss amount Particulars Amount FMV before the loss 800000 FMV after the loss 2...

Q: Determine the amount to be paid in full settlement of each invoice, assuming that credit for returns...

A: FOB Shipping Point-indicating that the buyer must pay to get the goods delivered. FOB (Freight on Bo...

Q: 2. The following items were deduced from the accounting records of JC Company's income statement for...

A: Administrative expenses are those business expenses which are used in office and by the administrati...

Q: 39 In accounting for debt investments that are classified as FV through profit or loss: Group of ...

A: As per IFRS 9 financial instrument, following is the correct option.

Q: The allowance for doubtful accounts of Beta Care Limited had a credit balance of $1,500 at December...

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for y...

Q: Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Inco...

A: A common size income statement is an income statement in which each line item is expressed as a perc...

Q: Which of the following statements pertaining to Accounting is correct? A. Accounting is a fixed scie...

A: Accounting is the way of collecting, recording, processing and communicating the effect of various b...

Q: As of December 31, 2015, the books of Ton Partnership showed capital balances of: TP40,000; O, P25,0...

A: Solution Partnership is an agreement between two or more peoples who agree to share business profit ...

Q: Blue Mountain Masterpieces produces pictures, paintings, and other home decor. The Printing and Fram...

A: The complete amount of money spent on a product is its total cost. Because overhead expenditures mus...

Q: You decide to borrow money from your parents for down payment without interest. Decide on your down ...

A: Down payment is the payment of money which are required at the time of making any purchases like the...

Q: Question 6 What should be the initial markup percent in a department having these planned figures? N...

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any ...

Q: Quantitative information is found А. В. С. D. only in the face of the financial statements. Yes No Y...

A: Financial Statements Financial statements provide the actual performance of a corporation. The balan...

Q: Service firms trace only direct-labour costs to jobs. All other costs are applied as a percentage of...

A: Service firms trace only direct-labor costs to jobs. All other costs are applied as a percentage of ...

Q: Assume an investor purchases bonds at a premium the bonds are to be held as a long-term investment w...

A: When a Bond is issued at premium, the interest revenue is always less than periodic amount of cash r...

Q: A family friend has asked your help in analyzing the operations of three anonymous companies operati...

A: The question is related to Ratio Analysis. The Retun on Investment is calculated with the help of fo...

Question

A credit sale of $4,000 is made on April 25, terms 2/10, n/30, on which a return of
$250 is granted on April 28. What amount is received as payment in full on May 4?
O a) $3,920
O b) $4,000
O c) $3,750
d) $3,675

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Everglades Consultants takes out a loan in the amount of $375,000 on April 1. The terms of the loan include a repayment of principal in eight, equal installments, paid annually from the April 1 date. The annual interest rate on the loan is 5%, recognized on December 31. (Round answers to the nearest cent, if needed.) A. Compute the interest recognized as of December 31 in year 1. B. Compute the principal due in year 1.
Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $500,000. The terms of the loan are 2.9% annual interest rate and payable in 8 months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. Round to the nearest cent if required.
Sub-Cinema Inc. borrowed $10,000 on Jan. 1 and will repay the loan with 12 equal payments made at the end of the month for 12 months. The interest rate is 12% annually. If the monthly payments are $888.49, what is the journal entry to record the cash received on Jan. 1 and the first payment made on Jan. 31?
On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
Review the following transactions and prepare any necessary journal entries for Lands Inc. A. On December 10, Lands Inc. contracts with a supplier to purchase 450 plants for its merchandise inventory, on credit, for $12.50 each. Credit terms are 4/15, n/30 from the invoice date of December 10. B. On December 28, Lands pays the amount due in cash to the supplier.
On January 1, Incredible Infants sold goods to Babies Inc. for $1,540, terms 30 days, and received payment on January 18. Which journal would the company use to record this transaction on the 18th? A. sales journal B. purchases journal C. cash receipts journal D. cash disbursements journal E. general journal
On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of 15,000 and a maturity value (principal plus interest) of 15,400. The discount is calculated to be 385, and the accrued interest income is 100. The recourse liability is estimated to be 1,000. Prepare the journal entry of Phillips to record the sale of the note receivable.
A business issued a $5,000, 60-day, 12% note to the hank. The amount due at maturity is: A. $4,900 B. $5,000 C. $5,100 D. $5,600
Whole Leaves wants to upgrade their equipment, and on January 24 the company takes out a loan from the bank in the amount of $310,000. The terms of the loan are 6.5% annual interest rate, payable in three months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on February 24, and the entry for payment of the short-term note and final interest payment on April 24. Round to the nearest cent if required.
Accounts Payable On May 18, Stanton Electronics purchased, on credit, 1,000 TV sets for $400 each. Stanton plans to resell these TVs in its store. Stanton paid the supplier on June 30. Required: Prepare the necessary journal entry (or entries) on May 18 and June 30.
Sold goods for $650, credit terms net 30 days. Which journal would the company use to record this transaction? A. sales journal B. purchases journal C. cash receipts journal D. cash disbursements journal E. general journal
If a customer owed your company $100 on the first day of the month, then purchased $200 of goods on credit on the fifth and paid you $50 on fifteenth, the customers ending balance for the month would show a (debit or credit) of how much?