Crossings Company regularly buys merchandise from Best Company and is allowed trade discounts of 20% and 10% from the list price. Crossings made a purchase on March 20, 2019, and received an invoice with a list price of P150,000, a freight charge of P2,500, and payment terms of net 30 days. REQUIRED: What is the total cost of merchandise purchases

Q: Zell Company had sales of $1,800,000 and related cost of merchandise sold of $1,150,000 for its…

A: a.

Q: Dean Company regularly buys sweaters from Mill Company and is allowed a trade discount of 20% and…

A: Solution: Dean should report purchase at = Net price + Freight Net price = P900,000 * (1-0.20)…

Q: An invoice for accessories is dated December 27 and this paid on January 10. The trade discount is…

A: The following Free on board agreements is given to the trader as per the quantity purchased.

Q: Determine (1) the transaction price for the sale of shredders for January 2020, and (2) the refund…

A: Given information is: In January 2020, a retailer sells 500 paper shredders to customers for $100…

Q: On June 3, 2020, Hunt Company sold to Ann Mount merchandise having a sales price of $8,000 (cost…

A: Cost of goods return = (Cost of goods sold / Total sales)*Sales value of goods return =…

Q: Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on November 17,…

A: ANSWER (3 - a)   DATE PARTICULARS DEBIT ($) CREDIT ($) 17 NOV , 2021 ACCOUNTS RECEIVABLE…

Q: Upsilon Inc. began operations in the fourth quarter of 2019. For the first quarter ended March 31,…

A: Cost of Merchandise inventory on January 1, 2020 = Selling price of Merchandise inventory on January…

Q: On 12th January 2018, Megamart company grants an allowance to a Max traders, a customer of RO 2,600…

A: Sales allowance is reduction of price when customer keep the product but he is not satisfied with…

Q: On June 3, 2020, Nash Company sold to Ann Mount merchandise having a sales price of $7,200 (cost…

A: Journal entry is a process of recording the business transactions in the books of accounts for the…

Q: On May 9, 2021. Papa Corporation sold merchandise with a list price of P 150,000 to Mama Company on…

A: Purchases are always recorded net of trade discounts. When more than one trade discount is applied…

Q: Rea Company regularly buys sweaters from Litton Company and is allowed a trade discount of 20% and…

A: First trade discount = List price x 20% = P1,800,000 x 20% = P360,000

Q: On October 1, 2020, Brosnan Company sells (factors) $800,000 of receivables to Nation Factors, Inc.…

A: Account receivable means the amount to be received from the market because of goods sold. If we sell…

Q: Bakers’ Pal regularly buys sacks of flour from Mill Company and is allowed trade discounts of 20%…

A: When the raw material or goods for sale purpose are taken from the wholesaler or the manufacturer is…

Q: On January 1, 2021, The Barrett Company purchased merchandise from a supplier. Payment was a…

A: Present value:   The value of today’s amount to be paid or received in the future at a compound…

Q: WALNUT Department Store sells gift certificates, redeemable for store merchandise that expires one…

A: Unearned revenues are those revenues which are received in advance by the business but that will be…

Q: Eastman Corporation sells merchandise with a list price of $13,000 on February 1, 2019, with terms…

A: SOLUTION- A JOURNAL  IS THE COMPANY'S OFFICIAL BOOK IN WHICH ALL TRANSACTIONS ARE RECORDED IN…

Q: Lambert Corporation sells merchandise at a list price of $70,000 with accompanying terms of 2/10,…

A: Gross Method & Net Method Sales are recorded at full value under gross method  where as  the…

Q: 1. Riverbed Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2020.…

A: PLEASE LIKE THE ANSWER  Note:   “Since you have asked multiple question, we will solve the first…

Q: Jupiter Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2020. The…

A: a. Date Account Titles and Explanation Debit Credit January 2, 2020 Notes Receivable…

Q: 1-year advanced rent of P30,000 to apply for 2020 was received from a sublease contract. P40,000…

A: Net Sales = 20,00,000 Purchases = 12,00,000 Opening Inventory = 2,00,000 Closing Inventory =…

Q: GJ Office Supplies offers the following discounts: Trade discounts of 10% at list price and another…

A: Trade Discount=List price×Trade Discount=P 62,000×10%=P 6,200

Q: ABC Department Store sells gift certificates that are redeemable only when the merchandise is…

A: Solution: Liability for outstanding gift certificates on Dec 31, 2019 = Gift certificates…

Q: On June 3, 2020, Hunt Company sold to Ann Mount merchandise having a sales price of $8,000 (cost…

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on November 17,…

A: Gross method of accounting  In case of gross method of accounting for purchase discount, purchase is…

Q: Resin Milling issued a $420,000 note on January 1, 2018 to a customer in exchange for merchandise.…

A: Journal Entries: are the first recording of any transaction in the books of accounts. These entries…

Q: racy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on November 17,…

A: Journal entry is a primary entry entry that records the financial transactions nitially.

Q: Lambert Corporation sells merchandise at a list price of $70,000 with accompanying terms of 2/10,…

A: Solution: According to data - Lambert Corporation sells merchandise at a list price of $70,000 with…

Q: Cruise Industries purchased $10,800 of merchandise on February 1, 2020, subject to a trade discount…

A: Journal entry is a process of recording the business transactions in the books of accounts for the…

Q: On December 1, 2019, Insto Photo Company purchased merchandise, invoice price $25,000, and issued a…

A: Notes payables: Notes payable are the liabilities. When there is a promise to pay later in future,…

Q: On June 30, 2018, the Esquire Company sold some merchandise to a customer for $30,000 and agreed…

A: Given, Esquire Company sold some merchandise to a customer for $30,000 Noninterest-bearing discount…

Q: On June 15, 2019, Robinson Company received a shipment of merchandise from Taytay Company with a…

A: Consignment means where consignor send goods to consignee to be sold by later on the behalf of…

Q: If Guijo used the gross method in recording its purchases, how much is the net amount of Accounts…

A: The gross price method involves recording a purchase at its gross price when it is first recorded in…

Q: . Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and…

A: Trade discounts Trade discounts are discounts given on the invoice value. Trade discounts are given…

Q: Marc Company sold merchandise to Jacobs Company on July 7, 2020 at a list price of P150,000, trade…

A: Note: 2/EOM, n/60: Here, 2 represents the discount rate if payment is made within two days after the…

Q: Sage Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2020. The goods…

A: Journal entry records every transaction by using the double-entry system. Sales as per net basis are…

Q: On March 24, 2021, blue Company purchased merchandise with an invoice price of 48,000 and terms of…

A: There is two methods to record discount which are, (1) Net method (2) Gross method We will talk…

Q: In January 2020, a retailer sells 200 paper shredders to customers for $100 each. The terms of the…

A:

Q: Prepare the journal entry(ies) to record the sale and related cost of goods sold for Riverbed…

A:

Q: On June 15, 2019, Robinson Company received a shipment of merchandise from Taytay Company with a…

A: Consignment means where consignor send goods to consignee to be sold by later on the behalf of…

Q: Required: 1. Prepare the journal entries to record the sale on November 17 (ignore cost of goods)…

A: Journal entry for trade discount is not recorded in the books of accounts

Q: On June 1, 2019 Ela Company sold merchandise with a list price of P1,000,000 to XYZ Company. Ela…

A: Solution: Net price = List price - Trade discount = P1,000,000 *(1-0.20) (1-0.10) = P720,000

Q: Berlin Corp. reported the following data for 2019: Total net sales made to customers were P2,000,000…

A: Introduction:- Earned money that is subject to federal or state taxation is referred to as taxable…

Q: Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on November 17,…

A:

Q: Castro Industries purchased $21,600 of merchandise on February 1, 2020, subject to a trade discount…

A: The periodic system does not maintain the record for cost of goods sold with every transaction in…

Q: Grouper Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2020. The…

A: 1. Net Method - Under the net method of recording accounts receivables when a company makes sales,…

Q: Wildhorse Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2017. The…

A: Transaction on 02.01.17. The credit salees made for $ 569900 with the passt histiry of allowing…

Q: Ward Company’s usual sales terms are net 60 days, FOB shipping point. Sales, net of returns and…

A: Net sales are calculated by deducting the returns or allowance from the total sales.

Q: On 3 January 2019 Zandile's Boutique bought trade goods on credit from Nom's Wholesalers for R22…

A:

Q: Riverbed Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2020. The…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.