Humble Co. sells merchandise on credit to Wise Co in the amount of P9,600. The invoice is dated on April 15 with terms of 1/15, net 45. What is the amount of the discount and up to what date must the invoice be paid in order for the buyer to take advantage of the discount?Required to answer. Single choice.
Q: Apple Co sells merchandise on credit to Zea Co in the amount of P8,000. The invoice is dated on…
A: Cash Discount Customers are rewarded with cash savings if they pay their bills within a particular…
Q: Kaden Co. sells merchandise on credit to Jase Co. for $9,600. The invoice is dated July 15 with…
A: Discount: It refers to a percentage that is deducted from the normal selling price of a product.
Q: On January 15, Nifty Company sells merchandise on account to Martinez Associates for $5,000 with…
A: COncept - The term 3/10, n/30 Indicates that, If the payment is made within 10days then the…
Q: Journalize the entries to record the sale on December 31. B. Journalize the entries to record the…
A: Given information is: Scheduled Co. Sold merchandise on account to Bernard Retail Inc. for $15,000,…
Q: Assume that a company records purchases net of discount. If the company bought merchandise valued at…
A: Accounts payable will be recorded as net of discount as purchases are recorded net of discount. The…
Q: On June 1, 2018, JULLIES, Inc. sold merchandise with a list price of ₱40,000 to JELLY Corp. on…
A: Net purchase price = List price - trade discount = ₱40,000 - ₱40,000*(1-0.30)*(1-0.20) = ₱17,600
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: Abbey Co. sold merchandise to Gomez Co. on account, $42000, terms 2/15, net 45. The cost of the…
A: Net sales = Total sales - Sales return = $42000 - $4000 = $38000 Cost of goods sold =Original cost…
Q: Love Co. sold merchandise to Kind Co. on account, P35,000, terms 2/15, net 45. The cost of the…
A: Cost of goods sold less return=Cost of goods sold-Return=P 24,500-P1,700=P 22,800
Q: Emma Co. sold to Isabella Co. merchandise on account FOB shipping point, 2/10, net 30, for $15,000.…
A: FOB shipping point is when the title of goods purchased passes to the buyer when the goods are…
Q: Schofield Co. sold merchandise on account to Bernard Retail Inc. for $15,000, terms 2/10, n/30. The…
A: Merchandise inventory refers to the cost of goods that are readily available for sale at some random…
Q: On June 1, Compassion Company sold merchandise with a list price of P1,000,000 to a customer. The…
A: A trade discount is offered to the customer to encourage him to purchase the products in bulk…
Q: On June 1, Compassion Company sold merchandise with a list price of P1,000,000 to a customer. The…
A: The shipping charges are to be paid by the buyer for FOB shipping sale .
Q: After the amount due on a sale of $29,200, terms 1/10, n/eom, is received from a customer within the…
A: Merchandising businesses: Merchandising companies which buy goods from suppliers, or manufacturers,…
Q: Abbey Co. sold merchandise to Gomez Co. on account, $37000, terms 2/15, net 45. The cost of the…
A: As posted multiple independent questions we are answering only first question kindly repost the…
Q: Kaden Co. sells merchandise on credit to Jase Co. for $9,600. The invoice is dated July 15 with…
A: Given information is: Kaden Co. sells merchandise on credit to Jase Co. for $9,600. The invoice is…
Q: Pharoah Company sells merchandise on account for $3500 to Riverbed Company with credit terms of…
A: Calculate the amount of check.
Q: isaac co.sells merchandise on credit to sonar co. in the amount of9,600 the invoice is dated on…
A: Formula: Sales discount amount = Invoice amount x Discount rate
Q: Sampson Co. sold merchandise to Batson Co. on account, $22,900, terms 2/15, net 45. The cost of the…
A: Cash discount = $22,900*2% Cash discount = $458 Sales after cash discount = $22,900 - $458 Sales…
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: Pierce Company sold to Stanton Company merchandise on account FOB shipping point, 2/10, net 30, for…
A: A Journal entry is a primary entry that records the financial transactions initially. The…
Q: Jacob Co. sells merchandise on credit to Isaiah Co. for $9,700. The invoice is dated on May 1 with…
A: 1/15 means 1% discount will be there if payment is made with in 15 days and no discount after 15…
Q: Abbey Co. sold merchandise to Gomez Co. on account, $35,100, terms 2/15, net 45. The cost of the…
A: Gross profit margin is the profit arrived after considering all direct costs relating to the sale of…
Q: Apple Co sells merchandise on credit to Zea Co in the amount of 8,000. The invoice is dated on…
A: The term 1/15, net 45 means 1% discount till 15 days of date of invoice.
Q: Pierce Company sold merchandise to Stanton Company on account FOB shipping point, 2/10, net 30, for…
A: Under the FOB shipping point, shipping charges are borne by the buyer. So if Pierce paid the…
Q: Barans Company purchased merchandise on account from a supplier for $9,200, terms 2/10, n/30. Barans…
A: Sales are the revenues generated by the business from its day to day operations. The sales revenue…
Q: Corinto Co. sold merchandise to Genesis Co. on account, P18,000, terms 2/15, net 45. The cost of the…
A: Solution:- Calculation of net sales:-
Q: Emma Co. sold to Isabella Co. merchandise on account FOB shipping point, 1/10, net 30, for $11,700.…
A: Solution) Date Particulars Debt Credit Accounts Payable. Emma Co. A/c 11,700 Fright in…
Q: Jacob Co. sells merchandise on credit to Isaiah Co. for $10,400. The invoice is dated on May 1 with…
A: Discount: It refers to a percentage that is deducted from the normal selling price of a product.
Q: A sales invoice included the following information: merchandise price, $6,000; terms 2/10, n/eom.…
A: Formula to calculate cash received by the seller:Cash received by seller = Merchandise price -…
Q: On September 1, Jerry's Lighting purchased merchandise with a list price of $12,500 with credit…
A: Total amount paid = Net Purchase - discount amount where, Net Purchase = list price - purchase…
Q: er 1, Jerry's Lighting purchased merchandise with a list price of $4,100 with credit terms of 3/10,…
A: Solution: Amount of discount will be computed on the list price reduced by returns of merchandise if…
Q: On February 3, Smart Company sold merchandise in the amount of $2,400 to Truman Company, with credit…
A: Journal entries are used to keep financial transactions organized. You enter transaction data into…
Q: Pierce Company sold merchandise to Stanton Company on account FOB shipping point, 2/10, net 30, for…
A: Accounts receivable = Selling price- discount = $11300-($11300×2%) =$ 11300 -$226 =$11074
Q: Blossom Company sells merchandise on account for $3300 to Morton Company with credit terms of 2/7,…
A: Journal entries are the basic method for recording financial transactions in the books of accounts.…
Q: Sandra’s Store purchased merchandise from a manufacturer with an invoice price of $11,000 and credit…
A: Journal: Journal is the primary book of accounts. Transactions are recorded on it day-to-day basis.…
Q: A sales invoice included the following information: merchandise price, $6,000; terms 2/10, n/30.…
A: Payment terms 2/10, n/30 means discount of 2% is valid till 10 days from the date of purchase.…
Q: Caterpillar purchased merchandise from Alpha Technologies as follows: Invoice date: March 12th…
A: Given that, Invoice date = 12 March Invoice amount = $4000 Discount = 2%
Q: Avocado Company regularly buys merchandise from Ukraine Company and is allowed trade discounts of…
A: Note: Under FOB destination freight is the seller's expense but under FOB shipping point, freight is…
Q: On September 12, Ryan Company sold merchandise in the amount of $8,000 to Johnson Company, with…
A: Ryan company is using net method of accounting. The entry at the time of receipt of payment will be:…
Q: A wholesaler sold merchandise inventory with in invoice price RO 16,000 to the customer of business…
A: Credit terms 3/10, n/60 means customer will get a discount of 3% if payment is made within 10 days,…
Q: Provisions Grocery Store purchased merchandise on account from Federal Grocers for $500.00 on April…
A: Total amount paid = Net Purchase - discount amount + freight charges where, Discount amount = Net…
Q: Schofield Co. sold merchandise on account to Bernard Retail Inc. for $15,000, terms 2/10, n/30. The…
A: Discount amount (if payment is made within discount period) = Sales x rate of discount
Q: Brightstone Company sold P1,800 of merchandise on account to Light Saver, Inc. on September 1 with…
A: In the given case the sales returns must be deducted from the accounts receivable balance and the…
Q: Assume the following information: merchandise is sold on account to customer for P120,000, FOB…
A: Under FOB Shipping arrangement, the responsibility of seller is to deliver the goods to the shipping…
Q: Bramble Corporation sells merchandise on account for $4800 to Kingbird Corporation with credit terms…
A: Discount terms 2/10 net 30 indicates that A discount of 2% on net sales That is total sales less…
Q: Emma Co. sold to Isabella Co. merchandise on account FOB shipping point, 2/10, net 30, for $8,100.…
A: Discount on payment = Purchase value x discount rate = 8100*2% = 162
Q: Cruise Industries purchased $10,800 of merchandise on February 1, 2020, subject to a trade discount…
A: a. Assuming that Cruise uses the perpetual method for recording merchandise transactions, record…
Humble Co. sells merchandise on credit to Wise Co in the amount of P9,600. The invoice is dated on April 15 with terms of 1/15, net 45. What is the amount of the discount and up to what date must the invoice be paid in order for the buyer to take advantage of the discount?Required to answer. Single choice.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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.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?Review the following transactions and prepare any necessary journal entries for Tolbert Enterprises. A. On April 7, Tolbert Enterprises contracts with a supplier to purchase 300 water bottles for their merchandise inventory, on credit, for $10 each. Credit terms are 2/10, n/60 from the invoice date of April 7. B. On April 15, Tolbert pays the amount due in cash to the supplier.
- Record the following transactions in general journal form. a. Sold merchandise on account to A. Bauer, 680 plus 54.40 sales tax (invoice no. D446). b. Bauer returned 105.50 of the merchandise. Issued credit memo no. 114 for 113.94 (105.50 for the amount of the sale plus 8.44 for the amount of the sales tax).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.If a retailer purchased inventory in the amount of $750, terms 2/10, n/60, returned $30 of the inventory for a full refund, and received an allowance for $95, how much would the discount be if the retailer remitted payment within the discount window?
- A seller sells $800 worth of goods on credit to a customer, with a cost to the seller of $300. Shipping charges are $100. The terms of the sale are 2/10, n/30, FOB Destination. What, if any, journal entry or entries will the seller record for these transactions?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.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.
- Gomez Company sells electrical supplies on a wholesale basis. The balances of the accounts as of April 1 have been recorded in the general ledger in your Working Papers and CengageNow. The following transactions took place during April of this year: Apr. 1 Sold merchandise on account to Myers Company, invoice no. 761, 570.40. 5 Sold merchandise on account to L. R. Foster Company, invoice no. 762, 486.10. 6 Issued credit memo no. 50 to Myers Company for merchandise returned, 40.70. 10 Sold merchandise on account to Diaz Hardware, invoice no. 763, 293.35. 14 Sold merchandise on account to Brooks and Bennett, invoice no. 764, 640.16. 17 Sold merchandise on account to Powell and Reyes, invoice no. 765, 582.12. 21 Issued credit memo no. 51 to Brooks and Bennett for merchandise returned, 68.44. 24 Sold merchandise on account to Ortiz Company, invoice no. 766, 652.87. 26 Sold merchandise on account to Diaz Hardware, invoice no. 767, 832.19. 30 Issued credit memo no. 52 to Diaz Hardware for damage to merchandise, 98.50. Required 1. Record these sales of merchandise on account in the sales journal. If using Working Papers, use page 39. Record the sales returns and allowances in the general journal. If using Working Papers, use page 74. 2. Immediately after recording each transaction, post to the accounts receivable ledger. 3. Post the amounts from the general journal daily. Post the sales journal amount as a total at the end of the month: Accounts Receivable 113, Sales 411, Sales Returns and Allowances 412. 4. Prepare a schedule of accounts receivable. Compare the balance of the Accounts Receivable controlling account with the total of the schedule of accounts receivable.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.A customer returns $690 worth of merchandise and receives a full refund. What accounts recognize this sales return, assuming the customer has not yet remitted payment to the retailer? A. accounts receivable, sales returns and allowances B. accounts receivable, cash C. sales returns and allowances, purchases D. sales discounts, cost of goods sold