FDN Trading recorded the following events involving a recent purchase merchandise: Received goods for P44,000, terms 3/10, n/30. Returned P400 of the shipment for credit. Paid P100 freight on the shipment on terms FOB Shipping Point.

FDN Trading recorded the following events involving a recent purchase merchandise: Received goods for P44,000, terms 3/10, n/30. Returned P400 of the shipment for credit. Paid P100 freight on the shipment on terms FOB Shipping Point.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 37E: Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following...

See similar textbooks

Related questions

Q: Determine the amount to be paid in full settlement of each invoice, assuming that credit for returns…

A: Inventory: It refers to the items held by an organization which were in various forms like raw…

Q: he entry to record the receipt of payment within the discount period on a sale of $2400 with terms…

A: Terms 2/8, n/30 indicate that if the payment is made within 8 days discount shall be allowed at the…

Q: A sales invoice included the following information: merchandise price, P4,200; transportation, P320;…

A: Discount on payment = (sales - sales return) x discount rate = (4200-600)*1% = P36

Q: On September 1, Dayne Ltd. purchased $9,500 of inventory items on credit with the terms 1/15, net…

A: Given that Dayne Ltd. purchased $9,500 of inventory items on credit

Q: A sales invoice included the following information: merchandise price, $4,200; terms 1/10, r/eom;…

A: Introduction:- Cost of merchandise includes as follows:- merchandise purchase price - purchase…

Q: Determine the amount to be paid in full settlement of the invoice assuming that credit for returns…

A: FOB destination sale: In FOB destination sale freight costs are paid by the seller and ownership is…

Q: Based on the following information, what would be recorded as purchases discount if the invoice is…

A: Purchase discount is calculated on the net value and does not include the fright paid and purchase…

Q: ACE Manufacturing pays a freight bill of $54 to united trucking company for merchandise purchased…

A: Periodic inventory system is an inventory system in which all transactions relates to inventory like…

Q: Determine the amount to be paid in full settlement of each of two invoices (a) and (b), assuming…

A: Introduction: Purchase discount: Goods are purchased on credit. If payment is made within discount…

Q: Determine the amount to be paid in full settlement of each invoice, assuming that credit for returns…

A: Determination of Amount to be paid in full settlement is as follows: Answer a)

Q: What is the net cost of the goods if Marigold Company pays within the discount period?

A: If payment is made within discount period, then Marigold would receive the discount offered by…

Q: Winter Company received quotations from two entities for an item of merchandise as follows: From…

A: Trade discount is that discount which is given on list price of product to all the customers. Under…

Q: Determine the amount to be paid in full settlement of each of two invoices (a) and (b), assuming…

Q: MAKE THE NECESSARY JOURNAL ENTRIES FOR THE FOLLOWING TRANSACTIOn: 1)Merchandise acquired cost is…

A: Journal Entries are primary records maintained by the entity in the books of account, on the…

Q: FN Trading recorded the following events involving a recent purchase of merchandise: Received goods…

A: SOLUTION- NET COST OF PURCHASE = (GROSS PURCHASE - PURCHASE RETURN) * (1-CASH DISCOUNT RATE) +…

Q: Calexico trading recorded the following events involving a recent purchase of merchandise:…

A: Solution: Net cost of purchase = (Gross purchase - Purchase returns) * (1-cash discount rate) +…

Q: Merchandise with an invoice price of $10,000 is purchased subject to terms of 2/10, n/30, FOB…

A: Formula to Calculate net cost of Merchandise (Paid within the period):Net cost of merchandise =…

Q: The debits and credits from four related transactions, (1) through (4), are presented in the…

A: Transaction 1 shows that the purchase has been recorded by considering the discount. And the case…

Q: Kingbird, Inc. purchased merchandise inventory with an invoice price of $13100 and credit terms of…

A: Given, Invoice price = $13,100 Terms = 2/10, n/30

Q: Merchandise with a list price of $4,700 is purchased on account, terms FOB shipping point, 1/10,…

A: 1/10, n/30 means 1% discount is offered is payment is made within 10 days of a 30-day payment…

Q: Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming…

A: FOB DESTINATION POINT means the seller is liable to deliver goods at the destination point of the…

Q: The transactions that follow took place under the perpetual inventory system. Record each…

A: Ledgers are the accounts prepared by a business to prepare the financial statements and contains as…

Q: The following data was taken from ledger account balances and supplementary data for ABM Company.…

A: Closing entries are those entry of a company that are recorded at the end of each accounting period…

Q: A sales invoice included the following information: merchandise price, $8,100; terms 1/10, n/eom,…

A: Sales invoice: Sales invoice refers to the document which is used to inform the customer the amount…

Q: Merchandise is sold on account to a customer for $14,100, terms FOB shipping point, 2/10, n/30. The…

A: FOB: FOB stands for free on board. FOB is term that determines the person who is liable for damage…

Q: Shell Company purchased merchandise inventory with an invoice price of $4,000 and credit terms of…

A: Given Information : Invoice price of merchandise inventory purchased = $4,000 Credit terms = 2/10,…

Q: Kingbird, Inc. purchased merchandise inventory with an invoice price of $13100 and credit terms of…

A: SOLUTION 1- GIVEN, PURCHASED AMOUNT = 13100 DISCOUNT RATE = 2%

Q: Winter Company received quotations from two entities for an item of merchandise as follows: From…

A: Credit terms 2/10, n/30 means that customer will get a discount of 2%, if payment is being made in…

Q: A sales invoice included the following information: merchandise price, $3,100; terms 1/10, n/eom;…

A: Solution: Particulars Amount ($) Merchandise Price 3,100 Less: Merchandise Returns 600 Net…

Q: A sales invoice included the following information: merchandise price, P4,100; transportation, P320;…

A: • FOB ( Destination)shipping point : Its the responsibility of buyer to pay the shipping charges .…

Q: Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming…

A: (a)

Q: Determine the amount to be paid in full settlement of each of the following invoices, assuming that…

A: n/20 invoice should be settled in 20 days 1/10, n/30. Invoice should be settled in 30 days, if it is…

Q: Merchandise with a list price of $4,700 is purchased on account, terms FOB shipping point, 1/10,…

A: FOB shipping point: Under FOB shipping point the possession of goods are with the seller until the…

Q: Merchandise is sold on account to a customer for $18,300, terms FOB shipping point, 1/10, n/30. The…

A: Accounts receivable: It is a current asset of an organization. It is the amount due from customers…

Q: Jake's Market recorded the following events involving a recent purchase of merchandise: Received…

A: Formula: Discount amount = Invoice amount x discount rate

Q: reight Terms Determine the amount to be paid in full settlement of each of two invoices, (a) and…

A: a. Computation is represented as below: Hence, the amount to be paid in full settlement is $75,250.…

Q: Merchandise is purchased for $3,300 on September 2 subject to terms of 2/10, n/30, FOB destination.…

A: Cost of goods sold: It refers to the overall cost incurred by a company for the production of the…

Q: A sales invoice included the following information: merchandise price, $10,100; terms 1/10, n/eom;…

A: 1. MERCHANDISE PRICE = $10,100 2. SALES RETURN = $2,000 3. TOTAL SALES = $8,100 4. INVOICE…

Q: Affectionate Company sold merchandise on account for P500,000. The terms are 3/10, n/30.…

A: Freight out:- Freight out is defined as the transportation cost that incurred at the time of…

Q: Freight Terms Determine the amount to be paid in full settlement of each of two invoices, (a) and…

A: Answer - Part a.- Purchase $36,000…

Q: Details of invoices for purchases of merchandise are as follows: Invoice Merchandise Freight…

A: Invoice: When the buyer sells his goods in credit or cash to a seller. He then sends the details of…

Q: Determine the amount to be paid in full settlement of each of the following invoices, assuming that…

A: Under FOB shipping point, buyer will be treated as owner of the goods from the time goods are…

Q: Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming…

A: FOB (Free on Board) Destination means that the buyer pays all costs incurred for the delivery of…

Q: Freight terms Determine the amount to be paid in full settlement of each of twoinvoices, (a) and…

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

Q: Affectionate Company sold merchandise on account for P500,000. The terms are 3/10, n/30. The related…

A: Journal:- These are prepared by the companies with debit and credit sides in order to match the…

Q: Entity J sold merchandise to Entity X on account, P23,000, terms 3/15, net 45. The cost of the…

A: Sales discount = (sales - sales return) * discount rate = (23000-2500) *3% = P615

Q: Freight terms Determine the amount to be paid in full settlement of each of the two invoices (a) and…

A: FOB shipping point: Under FOB shipping point the possession of goods are with the seller until the…

Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

Please answer the question correctly. Thank you.

FDN Trading recorded the following events involving a recent purchase of
merchandise:
Received goods for P44,000, terms 3/10, n/30.
Returned P400 of the shipment for credit.
Paid P100 freight on the shipment on terms FOB Shipping Point.
Paid the invoice within the discount period.
How much is the net cost of purchases?

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

Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following transactions: a. Made credit sales of $825,000. The cost of the merchandise sold was $560,000. b. Collected accounts receivable in the amount of $752,600. c. Purchased goods on credit in the amount of $574,300. d. Paid accounts payable in the amount of $536,200. Required: Prepare the journal entries necessary to record the transactions. Indicate whether each transaction increased cash, decreased cash, or had no effect on cash.
Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc. A. On October 3, Sewing Masters Inc. purchases 800 yards of fabric (Fabric Inventory) at $9.00 per yard from a supplier, on credit. Terms of the purchase are 1/5, n/40 from the invoice date of October 3. B. On October 8, Sewing Masters Inc. purchases 300 more yards of fabric from the same supplier at an increased price of $9.25 per yard, on credit. Terms of the purchase are 5/10, n/20 from the invoice date of October 8. C. On October 18, Sewing Masters pays cash for the amount due to the fabric supplier from the October 8 transaction. D. On October 23, Sewing Masters pays cash for the amount due to the fabric supplier from the October 3 transaction.
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.
Toby Company had the following sales transactions for March: Mar. 6Sold merchandise on account to Osbourne, Inc., invoice no. 1128, 563.17. 14Sold merchandise on account to Ortiz Company, invoice no. 1129, 823.50. 20Sold merchandise on account to Bailey Corporation, invoice no. 1130, 2,350.98. 24Sold merchandise on account to Shannon Corporation, invoice no. 1131, 1,547.07. Assume that Toby Company had beginning balances on March 1 of 3,569.80 (Sales 411) and 2,450.39 (Accounts Receivable 113). Record the sales of merchandise on account in the sales journal (page 24) and then post to the general ledger.
If a customer purchased merchandise in the amount of $340, terms 3/10, n/30, returned $70 of the inventory for a full refund, and received an allowance for $65, how much discount would be applied if the customer remitted payment within the discount window?
A retailer returns $400 worth of inventory to a manufacturer and receives a full refund. What accounts recognize this return before the retailer remits payment to the manufacturer? A. accounts payable, merchandise inventory B. accounts payable, cash C. cash, merchandise inventory D. merchandise inventory, cost of goods sold
The following transactions were completed by Nelsons Hardware, a retailer, during September. Terms on sales on account are 1/10, n/30, FOB shipping point. Sept. 4Received cash from M. Alex in payment of August 25 invoice of 275, less cash discount. 7Issued Ck. No. 8175, 915.75, to Top Tools, Inc., for invoice. no. 2256, recorded previously for 925, less cash discount of 9.25. 10Sold merchandise in the amount of 175 on a credit card. Sales tax on this sale is 8%. The credit card fee the bank deducted for this transaction is 5. 11Issued Ck. No. 8176, 653.40, to Snap Tools, Inc. for invoice no. 726, recorded previously on account for 660. A trade discount of 15% was applied at the time of purchase, and Snap Tools, Inc.s credit terms are 1/10, n/45. 15Received 95 cash in payment of August 20 invoice from N. Johnson. No cash discount applied. 19Received 1,165 cash in payment of a 1,100 note receivable and interest of 65. 22Voided Ck. No. 8177 due to error. 26Received and paid telephone bill, 62; Ck. No. 8178, payable to Southern Telephone Company. 30Paid wages recorded previously for the month, 3,266, Ck. No. 8179. Required 1. Journalize the transactions for September in the cash receipts journal, the general journal (for the transaction on Sept. 10th), or the cash payments journal as appropriate. Assume the periodic inventory method is used. 2. If you are using Working Papers, total and rule the journals. Prove the equality of debit and credit totals.
The following transactions were completed by Nelsons Boutique, a retailer, during July. Terms of sales on account are 2/10, n/30, FOB shipping point. July 3Received cash from J. Smith in payment of June 29 invoice of 350, less cash discount. 6Issued Ck. No. 1718, 742.50, to Designer, Inc., for invoice. no. 2256, recorded previously for 750, less cash discount of 7.50. July 9Sold merchandise in the amount of 250 on a credit card. Sales tax on this sale is 6%. The credit card fee the bank deducted for this transaction is 5. 10Issued Ck. No. 1719, 764.40, to Smart Style, Inc., for invoice no. 1825, recorded previously on account for 780. A trade discount of 25% was applied at the time of purchase, and Smart Style, Inc.s credit terms are 2/10, n/30. 12Received 180 cash in payment of June 20 invoice from R. Matthews. No cash discount applied. 18Received 1,575 cash in payment of a 1,500 note receivable and interest of 75. 21Voided Ck. No. 1720 due to error. 25Received and paid utility bill, 152; Ck. No. 1721, payable to City Utilities Company. 31Paid wages recorded previously for the month, 2,586, Ck. No. 1722. Required 1. Journalize the transactions for July in the cash receipts journal, the general journal (for the transaction on July 9th), or the cash payments journal as appropriate. Assume the periodic inventory method is used. 2. If you are using Working Papers, total and rule the journals. Prove the equality of debit and credit totals.