ABC Company accepted a national credit card for a $3,000 purchase. The cost of the goods sold is $2,400. The credit card company charges a 3% fee. What is the impact of this transaction on net operating income?   Increase by $582     Increase by $2,910     Increase by $600     Increase by $510

Q: A cellular company purchased $27,800 in cell phones on June 25. The terms of sale were 4/20, 3/30,…

A: The terms of sale are written in a business language and hence we should read accordingly Net Amount…

Q: Elkhorn Company purchased merchandise on account from Springhill Company for $42,000, terms 2/10,…

A: Accounts payable are the suppliers from whom a company purchases its raw material or input stock. In…

Q: A cellular company purchased $25,800 in cell phones on June 25. The terms of sale were 4/20, 3/30,…

A: The given Discount terms are, 4/20, 3/30, n/60 This implies, that if Payment has been made within…

Q: On June 1, Compassion Company sold merchandise with a list price of P 1,000,000 to a customer. The…

A: Trade discount:- A trade discount is referred as the discount amount through which the manufacturer…

Q: e balance is P

A: Introduction Net Income: Total revenue less all other expenditures and costs (including any other…

Q: Presented here are selected transactions of Palmer Company. Palmer sells in large quantities to…

A: Working Note: Amount received from Grey Company = (Sales - sales return) x (1 - discount rate) =…

Q: On December 27, 20x1, ABC Co. received a sale order for a credit sale of goods with selling price of…

A: Note: Under FOB destination freight is the seller's expense but under FOB shipping point, freight is…

Q: FDN Company sold goods to a customer with terms 3/10, 2/20 n/30, FOB Shipping Point amounting to…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

Q: Lily Corp. Corp. sells on term 2/20, net 40. Total credit sale for the year are P180,000. 40% pays…

A: Accounts receivables refer to the legal claims or money a company will get after the customer pays…

Q: Bell Corporation sold merchandise on account with a list price of $18,000 and a cost of $10,000.…

A: Compute the Bell Corporation's net sales amount: Compute the value of discount:

Q: Cash.. Home Office Current. P 5,040 P 21,000 Purchases from outsiders. Shipments from Home Office…

A: Branches are opened with a view to expanding the business, improving sales, and earning more profit.…

Q: Boeing Truck Company received an invoice showing 12 tires at $114 each, 16 tires at $164 each, and…

A:

Q: A cellular company purchased $27,800 in cell phones on June 25. The terms of sale were 4/20, 3/30,…

A: Part (a) Purchase Price of Cellular Company = $27,800   Date of Purchase = June 25 Purchase Return /…

Q: Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after…

A: Adjustment entries are those that are made after the trial balance is made by taking balances from…

Q: ABC Company operates a number of branches. On December 31, 2022, its Mindanao branch showed a Home…

A: The investment account is the account that shows the amount of the investment-related to a…

Q: Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after…

A: Journal entry refers to the recording made by the business in the books of accounts, of all the…

Q: On June 1, Compassion Company sold merchandise with a list price of P1,000,000 to a customer. The…

A: A trade discount is offered to the customer to encourage him to purchase the products in bulk…

Q: If Nico Corporation has annual purchases of $300,000 and accounts payable of $30,000, then average…

A: Average purchase per day is the total annual purchase dividend by the no of days in a year. Average…

Q: The home office ships merchandise to the branch at 25 percent above cost. At what amount should the…

A: As per question: home office ships merchandise to the branch at 25 percent above cost i.e selling…

Q: On 10/1/2020, Al-Salam stores purchased goods from Al-Hamid stores for the amount of 800,000 dinars…

A: Required  Journal enrty for payment made.

Q: On June 1, Compassion Company sold merchandise with a list price of P1,000,000 to a customer. The…

A: The shipping charges are to be paid by the buyer for FOB shipping sale .

Q: Flyer Company has provided the following information • Cash sales, $325,000 • Credit sales, $850.000…

A: Gross Profit is excess of Net Revenue over cost of manufacturing including all direct costs whereas…

Q: Carson's Bakery had Gross Sales of $200,000. The company was charged $1,000 in credit card fees,…

A: Net sales are the resulted amount of deducting Sales return, allowance, and credit card fee from the…

Q: On April 6, Year 1, Home Furnishings purchased $43,000 of merchandise from Una Imports, terms 2/10…

A: The discount is provided on purchase if payment is made within the discount period.

Q: A cellular company purchased $28,800 in cell phones on September 25. The terms of sale were 4/20,…

A: Invoice price is the price which is charged by the manufacturer from dealer. This is the money…

Q: Barans Company purchased merchandise on account from a supplier for $9,200, terms 1/10, n/30. Barans…

A: 1/10 net 30 means 1% discount will be there if payment is made with in 10 days and no discount after…

Q: Record these business transactions in debit and credit format a) The Company purchased Inventory on…

A: Allowance for doubtful account is created to record bad debt under allowance method, and it is a…

Q: On January 1, 20x1 Plaka Co. acquired goods for sale in the ordinary course of business for…

A: Given information, Purchase price = P250,000 Refundable purchase taxes included in above = 5000…

Q: A cellular company purchased $27,800 in cell phones on June 25. The terms of sale were 4/20, 3/30,…

A: Freight charge is the amount paid for the transportation of goods from one place to another. These…

Q: Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after…

A: Estimated Sales return are deducted from the sales of the year to arrive at the net sales as per the…

Q: On October 12, Equipment Incorporated sells $53,000 worth of equipment on account to a credit…

A:

Q: Piedmont Company purchased merchandise on account from a supplier for $30000, terms 1/10, n/30.…

A: Given,  Purchases = $30,000 Purchase returns = $8,000 Cash discount = 1%

Q: GINKGO-NUTS Enterprises' purchases per purchase invoice is ₱150,000. The purchase discount is 2/10,…

A: Purchase discount=Purchase value×2%=₱ 150,000×2%= ₱ 3,000

Q: On June 1 of the current year, Pitt Company sold merchandise with a list price of P 5,000,000 to…

A: Trade discount means discount offered on list price of the products. Under FOB shipping point…

Q: Sheridan Company accepted a national credit card for a $4500 purchase. The cost of the goods sold is…

A: Credit Card Sales are the sales made to customers on receipts by way of credit cards. Credit Cards…

Q: Swisher Company sold inventory with a selling price of $5,000 to customers for cash.It also…

A: To record Sales Tax received from customer,  Debit cash account account Credit sales revenue account…

Q: Main Corporation has operated a branch in Cavite for one year. Shipments are billed to the branch at…

A: The question is related to Branch Accounting. In this head office billed the branch at cost. The…

Q: Dawn Co. purchased goods with invoice price of ₱3,000 on account on December 27, 20x1. The related…

A: FOB is a term generally used when the goods are imported or exported. FOB stands for free on board…

Q: AG Inc, made a €10,000 sale on account with the following terms: 1/15, n/30If the company uses the…

A: 1/15 net 30 means 1% discount will be there if payment is made with in 15 days and no discount after…

Q: Flounder Company purchased merchandise on account from a supplier for $32,100, terms 2/10, n/30.…

A: a)  Net purchases = $32,100 - $8,600 = $23,500 Discount on purchases = $23,500 * 2% = $470 Cash…

Q: On December 27, 20x1, YGS Co. received a sale order for a credit sale of goods with selling price of…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

Q: Barans Company purchased merchandise on account from Springhill Company for $13,900, terms 2/10,…

A: A. Calculate the amount of cash required for the payment.

Q: A home office ships merchandise to the branch at 30% above cost. The allowance for overvaluation at…

A: The shipments to branch account during the year Particulars Amount Allowance for Overvaluation…

Q: Rangling Company, buys goods from A.J. Stop Company that gives sales terms of 2.5/10, net 30 days.…

A: Please see the next step for the solution

Q: The following is a series of related transactions between Texas Wholesale Corp. and Boot Hill, a…

A: Problem 5.7 : a. Texas Wholesale Corp. On February 9, Texas Wholesale Corp. sold Boot Hill Sold =…

Q: Delta Company sold goods to wholesalers on terms 2/15, net 30. The entity had no cash sales but 50%…

A: The ageing of receivables are givem with the terms of credit 2/15 net 30.  Required  What amount…

Q: Halibut Company purchased merchandise on account from a supplier for $18,600, terms 2/10, n/30.…

A: a.Calculate the cash required.

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is