E6-4 (Algo) Determining the Effects of Credit Sales, Sales Discounts, Credit Card Sales, and Sales Returns and Allowances on Income Statement Categories LO6-1 Griffin Shoe Company records Sales Returns and Allowances, Sales Discounts, and Credit Card Discounts as contra-revenues. July 12 Sold merchandise to customer at factory store who charged the $600 purchase on her American Express card. American Express charges a 2 percent credit card fee. Cost of goods sold was $475. Sold merchandise to Customer T at an invoice price of $4,600; terms 1/10, n/30. Cost of goods sold was $2,300. July 15 July 20 Collected cash due from Customer T. July 21 Before paying for the order, a customer returned shoes with an invoice price of $1,100; cost of goods sold was $660. Complete the following table by entering the amounts of the effects of each transaction, including the related cost of goods sold. Note: Indicate decreases with a minus sign. Transaction July 12 July 15 July 20 July 21 Answer is complete but not entirely correct. Cost of Goods Sold Net Sales 588✔ 4,554 X 0x (1.100) 475✔ 2,300 0✔ (660)✓ Gross Profit 113 2,254 X 0x (440)
E6-4 (Algo) Determining the Effects of Credit Sales, Sales Discounts, Credit Card Sales, and Sales Returns and Allowances on Income Statement Categories LO6-1 Griffin Shoe Company records Sales Returns and Allowances, Sales Discounts, and Credit Card Discounts as contra-revenues. July 12 Sold merchandise to customer at factory store who charged the $600 purchase on her American Express card. American Express charges a 2 percent credit card fee. Cost of goods sold was $475. Sold merchandise to Customer T at an invoice price of $4,600; terms 1/10, n/30. Cost of goods sold was $2,300. July 15 July 20 Collected cash due from Customer T. July 21 Before paying for the order, a customer returned shoes with an invoice price of $1,100; cost of goods sold was $660. Complete the following table by entering the amounts of the effects of each transaction, including the related cost of goods sold. Note: Indicate decreases with a minus sign. Transaction July 12 July 15 July 20 July 21 Answer is complete but not entirely correct. Cost of Goods Sold Net Sales 588✔ 4,554 X 0x (1.100) 475✔ 2,300 0✔ (660)✓ Gross Profit 113 2,254 X 0x (440)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter4: Accounting For Retail Operations
Section: Chapter Questions
Problem 4.2P: Sales-related transactions The- following selected transactions were completed by Affordable...
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