Citron Mechanical Systems makes all sales on credit, with terms 1/15, n/30. During 2019, the list price (prediscount) of services provided was $687,500. Customers paid $482,000 (list price) of these sales within the discount period and the remaining $205,500 (list price) after the discount period. Citron uses the gross method of recording sales. Required: 1. Compute the amount of sales that Citron recorded for 2019. $ 687,500 2. Compute the amount of cash that Citron collected from these sales. 682,680 Feedback 3. Assuming the net method was used for all sales, prepare a summary journal entry to record these sales and a second summary entry to record the cash collected. If an amount box does not require an entry, leave it blank. Accounts Receivable v 680,625 Sales Revenue v 680,625 Record sale Cash v 682,680 Sales Discounts X 4,200 Accounts Receivable v 482,000

Citron Mechanical Systems makes all sales on credit, with terms 1/15, n/30. During 2019, the list price (prediscount) of services provided was $687,500. Customers paid $482,000 (list price) of these sales within the discount period and the remaining $205,500 (list price) after the discount period. Citron uses the gross method of recording sales. Required: 1. Compute the amount of sales that Citron recorded for 2019. $ 687,500 2. Compute the amount of cash that Citron collected from these sales. 682,680 Feedback 3. Assuming the net method was used for all sales, prepare a summary journal entry to record these sales and a second summary entry to record the cash collected. If an amount box does not require an entry, leave it blank. Accounts Receivable v 680,625 Sales Revenue v 680,625 Record sale Cash v 682,680 Sales Discounts X 4,200 Accounts Receivable v 482,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 63E

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The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before any necessary year-end adjustment relating to the following: Goods were in transit from a vendor to Ashwood on December 31, 2019. The invoice cost was 85,000, and the goods were shipped FOB shipping point on December 29, 2019. The goods were received on January 2, 2020. Goods shipped FOB shipping point on December 20, 2019, from a vendor to Ashwood were lost in transit. The invoice cost was 40,000. On January 5, 2020, Ashwood filed a 40,000 claim against the common carrier. Goods shipped FOB destination on December 22, 2019, from a vendor to Ashwood were received on January 6, 2020. The invoice cost was 20,000, What amount should Ashwood report as accounts payable on its December 31,2019, balance sheet? a. 1,260,000 b. 1,285,000 c. 1,325,000 d. 1,345,000
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Smith Company is required to charge customers an 8% sales tax on all goods it sells. At the time of sale, Smith includes the combined amount of both sales and sales tax in the sales account. At the end of May, Smiths sales account for May has a credit balance of 540,000. Prepare the sales tax adjusting journal entry for the end of May.
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