* Buying goods for 30,000 dinars and paying its value in cash. This will lead toIncrease cash and increase merchandise ODecrease in cash and increase in merchandise OIncrease in cash and decrease in merchandise OShortage of cash and decrease of merchandise O

Merchandise means the stock or inventory in the form of goods. It is kept by the entities for the…

* Buying goods for 30,000 dinars and paying its value in cash. This will lead to Increase cash and increase merchandise Decrease in cash and increase in merchandise Increase in cash and decrease in merchandise Shortage of cash and decrease of merchandise O

* Buying goods for 30,000 dinars and paying its value in cash. This will lead to Increase cash and increase merchandise Decrease in cash and increase in merchandise Increase in cash and decrease in merchandise Shortage of cash and decrease of merchandise O

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter10: Accounting For Sales And Cash Receipts

Section: Chapter Questions

Problem 2CE: Prepare journal entries for the following sales and cash receipts transactions. (a) Merchandise is...

See similar textbooks

Related questions

Q: f K40, 000 is deposited at the end of each half year in an account that earns 6.2% compounded…

A: Comment - Multiple Questions Asked Interest It is the amount that the borrower must pay in order to…

Q: Give the consolidation entry or entries needed to prepare a consolidated balance sheet immediately…

A: It has been given in the question that on the date of acquisition which is on December 31, 20X2 the…

Q: Capital accounts: Balance at Changes in contribution Balance at Current Accounts: Balance at Profit…

A: Partnership Firm :— When Two or More Person are come together to form a Business, Having Agreement…

Q: Norton Company received a 90-day, 6% note for $300,000, dated May 12 from a customer on account.…

A: Norton Company A 90-day, 6% note for $300,000, dated May 12 from a customer on account (A) the…

Q: Calculate ABM Ltd's tax payable or refundable

A: It has been given in the question that the ABM Ltd is the Australian resident company. For the year…

Q: [Determination of Selling Price] Question 18: The following data are obtained from the records of a…

A: Hi student, Since there are multiple subparts, we will answer only first three subparts. If you want…

Q: 5. Prepare a Statement of Financial Position using the ff. accounts (one in account form and one in…

A: Financial Statements of The Company :— Financial statement of the Company Provide the Financial…

Q: Part Three: Management would like you to make a recommendation to either continue operating in the…

A: Cost volume profit analysis refers to the analysis which shows the relationship between sales and…

Q: Cost of Direct Materials Used in Production for a Manufacturing Company Walker Manufacturing Company…

A: Direct material consumed is calculated for assessing the cost of material used. It is used in…

Q: Kerr Co.'s accounts payable balance at December 31, 2010 was $1,500,000 before considering the…

A: Accounts Payable balance at December 31, 2010 before adjustments: $1,500,000 Goods were shipped to…

Q: Print Item Transactions and T Accounts The following selected transactions were completed during…

A: When transaction occurs then it is recorded as journal entry in book of accounts. After recording…

Q: Murphy Company purchased a new machine for $120,000 on December 31, 2020. They obtained a loan

A: In this problem loan amount is $ 120,000 tobe repaid in 5 equal installments…

Q: Capital, 1 February 2019 Drawings Fixtures and fittings Equipment Accumulated depreciation of…

A: A statement of financial performance is a statement that indicates how much profit or loss the firm…

Q: Explains the three methods of accounting for investments that are recognized under GAAP and what…

A: GAAP stands for Generally Accepted Accounting Principles, which are the accounting principles or the…

Q: I need all blanks with blue arrows filled please and thank you.

A: Since, this is the follow-up question and you have asked the requirement of your question which is…

Q: Madison Park Co-op, a whole foods grocery and gift shop, has provided the following data to be used…

A: Cost allocation is the process of allocating the costs of one department (a service department) to…

Q: Richards Company manufactures a single product. All raw materials used were direct materials.…

A: Cost of materials used :— It is cost of direct raw materials used in the manufacturing of product.…

Q: All of the following are determinants of cap rates in the property asset market, except: Select…

A: Factors of Determination Of CAP Rates :— Cap Rates are Determined in three Major Factors :—…

Q: 2.- An air conditioning system product sells the industrial model for $175 each. Production costs…

A: BEP :— Break even point means Sales on which no Profit no gain. = Fixed Cost ÷ Contributions Margin…

Q: Question 8.4 Pepper Potts Pottery manufactures ceramic products. All direct materials are…

A: Given Information Direct Material Cost = $155,000 Total No. of units Introduced = 2,500 tons…

Q: If actual current sales are 80 and actual sales are 100, what will the budget current assets be, if…

A: Introduction: The exchange of products and services in exchange for money is referred to as sales.…

Q: Dash (Pty) Ltd provided the following information that was extracted from the financial records for…

A: The cash flow statement shows the cash inflow and cash outflow which include the cash flow from…

Q: For the following treasury bill bought in 2007, find (a) the price of the T-bill, and (b) the actual…

A: (a) Price of T-bill P = $21000 r = 3.04% = 0.0396 t = 9/12 = 0.75 Discount = P x r x t = 21000 x…

Q: Rooney, Incorporated is considering the purchase of a new machine costing $700,000. The machine's…

A: Rooney is considering the purchase of new machine. The decision as to whether the machine should be…

Q: (Present value of a complex stream) Don Draper has signed a contract that will pay him $55,000 at…

A: Present Value :— Present value is the Current Value of Future value amount or money or a series of…

Q: The sales, income from operations, and invested assets for each division of Jackson Corporation are…

A: The ratio analysis helps to analyze the financial statements of the business on the basis of various…

Q: How did you get $12,974.50 for the Marginal tax rate part?

A: Marginal tax rate is the percentage tax paid on each additional dollar of income earned. In other…

Q: On October 31, Pidgeon Stones Inc., a marble contractor, issued for cash 320,000 shares of $5 par…

A: Total paid in capital is the amount of capital which includes the common stock, preferred stock,…

Q: Dames has a mortgage of $88,500 at 4% for 20 years. The property taxes are $3,900 per year, and the…

A: Total monthly payment :— It is the sum of monthly mortgage payment and other monthly expenses.…

Q: A bank pays 6% interest, compounded semiannually. Use the appropriate formula to find how much…

A: Time Value of money :— According to this concept, value of money in present day is more than the…

Q: Dana Point Company Balance Sheet % Change Yr 2 Balance Sheet Common Size Yr 2 Yr 1 Balance Sheet…

A: A balance sheet is a representation of an individual's personal or corporation's financial balances…

Q: PROMPT: Restful Sleep Mattress company is planning to expand into selling bedroom furniture. This…

A: Business expansion refers to the process whereby an organization will open a new branch or add a new…

Q: -S The Stilton Company has the following inventory and credit purchases during the fiscal year ended…

A: FIFO Method :— It is one of the method of inventory valuation in which beginning Inventory and first…

Q: Janelle Carter deposited $9,590 in the bank on January 1, 2000, at an interest rate of 10%…

A: Lets understand the basics. For calculating accumulated amount at particular sum of amount at…

Q: Anita Hayes, who owns a travel agency, bought an old house to use as her business office. She found…

A: The fair value of the project or asset would be the present value of its future cash flows. This…

Q: Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and…

A: The variable cost changes with change in level of production. The fixed cost remains constant at…

Q: The following information is available for the year ended December 31: Beginning raw materials…

A: Raw Material Consumed :— It means How much of Raw material Used in Manufacturing of Product During…

Q: Allocated to Production Allocated to Sales Sales Overheads Sales Overheads Absorbed Finished Goods…

A: Cost ledger accounts are the accounts managed in the cost system where transactions are posted…

Q: Hofnim, Inc. had the following account balances on September 30, 2016. What is Hofnim's net income…

A: The income statement shows the net income or net loss calculated by deducting the expenses from the…

Q: In the liquidating process, any uncollectible deficiency becomes a loss to the partnership and is…

A: Dissolution of the Partnership Firm :— Whenever Reconstituted takes Place between the partners in…

Q: billing

A: Billing fraud- It aims to have a business make a payment to the employee and record that payment as…

Q: nt is true or false. Tax related fraud is a criminal offence in South Africa. Therefore, it can be…

A: Tax refers to the mandatory charge imposed by the authoritative government over the income gained by…

Q: Jane is a roofing contractor. Jane's friend needed a new roof but did not have the cash to pay.…

A: Lets understand the basics. When goods or services performed in exchange of asset then gross income…

Q: Which of the following statements relating to the tax treatment of an employee is FALSE? (i)…

A: Tax Exemption in Singapore for Both Resident and Non Resident To determine the tax residency is one…

Q: Scatter Diagrams and High-Low Cost Estimation Assume the local Pearle Vision has the following…

A: Lets understand the basics. High low method is a method using which variable costs and fixed costs…

Q: 7 8 9 Cash 10 Accounts Receivable 11 Cleaning Supplies 12 Prepaid Insurance 13 Office Equipment 14…

A: Preparation of closing entries is a method used by the business entity to close its temporary…

Q: 5. What is the significance of the value $10,000? How was this value calculated? 6. What is the…

A: Marginal Tax rate :— The Amount of Additional Tax paid for every additional dollar earned as income.…

Q: Jordan Inc. manufactures Product B, incurring variable product costs of $15.00 per unit and fixed…

A: Mark-Up % :— Mark Up cost is the Difference Between Sales - Total Product Cost. Markup % as per…

Q: Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2018. The chart of…

A: The journal is the first step of accounting to record the transactions of the business. The journal…

Q: * ?Goods were sold for 500,000 dinars in cash. Which account is credited Cash Purchases Capital…

A: The sale of goods means to sell off the products by the company in the market in order to earn…

Question

* Buying goods for 30,000 dinars and paying its value in cash. This will lead to
Increase cash and increase merchandise O
Decrease in cash and increase in merchandise O
Increase in cash and decrease in merchandise O
Shortage of cash and decrease of merchandise O

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

Sold merchandise costing $ 10800 for 48000 cash . what is merchandise inventory entry?
Make the cost of goods sold and balance sheet Cash ₱ 5,596.00 Account Recievable 20,760.00Equipment 9,000.00Supplies 6,500.00Notes Payable ₱ 20,000.00Capital 52,000.00Personal 2,050.00Purchases 73,020.00purchase Return 1,200.00Purchase Discount 302.00Frienght In 275.00Sales 54,960.00Sales Return 753.00Sales Discount 558.00Freight Out 225.00General Expenses 950.00Miscellenous Exp. 750.00Salary Expense 4,500.00Rent Expense 3,000.00Selling Expense 350.00Tax Expense 175.00Totals ₱ 128,462.00
Use the following information to determine the amount of cash paid for merchandise. Show calculations. Cost of merchandise sold per income statement 262,000 Accounts payable balance change during period (19,000) Inventory balance change during period 5,000
During February 1, 2018 Royal Company sold merchandise with a price of P100,000 towards Dew enterprise. Terms: 2/10, n/30. • How much is the sale? • How much is cash paid if within the discount period? • Who is the buyer?
A customer pays on credit for $1,250 worth of merchandise, terms 4/15, n/30. If the customer pays within the discount window, how much will they remit in cash to the retailer? Assume the perpetual inventory system is used. A.$1,200 B.$500 C.$50 D.$1,250
Cherry Co. Purchased merchandise for cash with an invoice price of 13000. How much is the vatable amount?
A sales invoice include the following information: merchandise price, $12,000: terms 1/10, n/oem;FOB shipping point with prepaid freight of $900, added to tlhe invoice. Assuming that a credit for merchandise returned of $500 is granted prior to payment and that the invoice is paid within the discount period, what is the amount of cash that should be received by the seller? How do you solve this?
Put this transaction on the accounting equation: bought goods for R7000 less 10% discount
Use the given information about XYZ Pty Ltd to answer the questions that follow: Sales P10, 000,000 Average inventories P2, 000,000 Cost of goods sold P8, 000,000 Receivables P666, 667 Average Accounts payable P666, 667 Required: a. Define the cash conversion cycle. b. Calculate XYZ’s Average Age of Inventory. c. Calculate XYZ’s Average Collection Period. d. Calculate the Accounts Payable Period. e. Calculate the XYZ’s cash conversion cycle. f. Advise XYZ on what they should do to reduce their cash conversion cycle. g. Explain two strategies that XYZ can use to fund its cash conversion cycle requirements.
A sales invoice included the following information: merchandise price, $9,000; terms 1/10, n/eom, FOB shipping point with prepaid freight of $800 added to the invoice. Assuming that a credit for merchandise returned of $1,000 is granted prior to payment and the invoice is paid within the discount period, what is the amount of cash that should be received by the seller? a.$9,710 b.$10,700 c.$990 d.$8,720
need help with this ASAP, thanks. A sales invoice included the following information: merchandise price, P12,000; transportation, P500; terms 2/10, n/30, FOB shipping point. Assuming that a credit for merchandise returned of P600 is granted prior to payment, that the transportation is prepaid by the seller, and that the invoice is paid within the discount period, what is the amount of cash received by the seller?
Prepare journal entries for the following sales and cash receipts transactions. (a) Merchandise is sold on account for 300 plus 3% sales tax, with 2/10, n/30 cash discount terms. (b) Part of the merchandise sold in transaction (a) for 70 plus sales tax is returned for credit. (c) The balance on account for the merchandise sold in transaction (a) is paid in cash within the discount period.