Indicate how much income Ayayai should recognize in January, February, March, and April.
Q: Thorne Estates Limited advertises and sells residential property on behalf of its customers. The…
A: Question pertains to preparation of cash budget.
Q: Telephone Sellers Inc. sells prepaid telephone cards to customers. Telephone Sellers then pays the…
A: workings: Given values: Telephone sellers sells $ 4000 of prepaid cards in January 2017.
Q: zar Plc, which imports optical equipment from Germany for sale to UK providers of ophthalmic…
A: (i). Forward Purchase Buy 375,000 Euro three months forward. The cost in pounds at the forward…
Q: Teal Company sells goods to Flint Company during 2020. It offers Flint the following rebates based…
A: As per the IFRS, Revenue should be booked only when it is highly probable that the amount will be…
Q: On February 1, 2020, the Telecommunications Company sold cellular telephones and unlimited calls…
A: Revenue recognition can be done using several methods like sales basis method, cost recoverability…
Q: Hard Company placed orders to DIFFICULT for the year 2021 that will result to the following amount…
A: First Quarter Details: Tax rate = 32% Sales = P13,000,000 Rebate = 10% * 1,100,000 = P110,000 Cost…
Q: If a firm have contract with customer, they will deliver their goods in one year after every three…
A: Following is the answer to the given question
Q: During 2020, Maine Company Sold 50,000 boxes of hotcakes under a new sales promotional program. Each…
A: Total estimated coupons that should be redeemed = 50,000 boxes ×80% = 40,000
Q: On February 1, 2020, the telecommunications company sold cellular phones and unlimited calls service…
A: Revenue Recognition Principle states that the sales revenue is recognized in the books of accounts…
Q: Dream Big Pillow Co., pays 65% of its purchases in the month of purchase, 30% the month after the…
A: Answer
Q: In August 2020, Atlantic Corp, commits to selling 100 of its merchandise to Boy Co. for P30,000…
A: As per IAS 15 Revenue recognition , When distinct goods or services are provided at standalone…
Q: Cainhurst Inc. had sales last year totaling $530,000, and its year-end Accounts Receivable were…
A: Days Sales outstanding refers to the number of days a company/firm takes to collect payment from its…
Q: ABC made the following supplies for sale in January 2020: ABC Juice Limited manufactures and sells…
A: The computation of VAT Payable/Refundable is shown below -
Q: Dream Big Pillow Co., pays 65% of its purchases in the month of purchase, 30% the month after the…
A: Total payment made for the month of january , february , march has been calculated.
Q: ed to take 6 months. Prepare the journal entry to record the sales. How much sales revenue should be…
A: journal entry to record the sales Date General Ledger Debit Credit (a) Accounts receivable…
Q: a. How does the company recognize its revenue to Customer A and Customer B? b. Make a journal on…
A: a.
Q: Sephora offers its customers a traveller's gift set as a premium in exchange for $ 40 if the…
A: Journal entry is the first step in the process of accounting, which is recording of financial data…
Q: Gerard Appliances, Inc., is a small manufacturer of washing machines and dryers. It sells its…
A: Accounts receivables and note receivables both are considered as asset for a firm and reported on…
Q: Manual Company sells goods to Nolan Company during 2020. It offers Nolan the following rebates based…
A: Sales revenue = Total sales - Rebate = $110,000 - $110,000*2% = $110,000 - $2,200 = $107,800
Q: Assume the following scenarios.Scenario 1: During 2021, IBM provides consulting services on its…
A: The revenue recognition principle also knows as the Revenue recognition concept states that revenues…
Q: In January 2020, a retailer sells 100 paper shredders to customers for $100 each. The terms of the…
A: Refund liability: When a company sells its products with a right of return to customers it has to…
Q: Orange, Inc., sells a LearnIt-Plus software package that consists of their normal LearnIt math…
A:
Q: In January, Cigaro Corp. agrees to a contract to sell 14,000 sports caps for $140,000 to Dilly, Inc.…
A: Calculate the price of 5,000 caps delivered in the month of March.
Q: Martz Inc. has a customer loyalty program that rewards a customer with 1 customer loyalty point for…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: Larkspur Inc. sells prepaid telephone cards to customers. Larkspur then pays the telecommunications…
A: As per revenue recognition concept, a revenue has to be recognized by a entity when it is earned and…
Q: An agent sells tickets for airlines to customers. In 2021, The total price the customers pay to the…
A: Revenue recognized in 2021 = Total amount received from the customers - Amount paid to the airlines
Q: Splish Company sells goods to Blossom Company during 2020. It offers Blossom the following rebates…
A: Past experience shows that the 37,600 units are sold to Blossom in the third quarter, hence a rebate…
Q: In August 2020, Atlantic Corp, commits to selling 100 of its merchandise to Boy Co. for P30,000…
A: As per IAS 15 Revenue recognition When distinct goods or services are provided at standalone…
Q: whereby a customer who purchases three boxes of chocolates at P200 per box in a single transaction…
A: A.4,000,000 B.7,20,000 3x +.75x =60,000 x = 16,000 So .75 x 16,000 = 12,000 ×200
Q: Starlight, a Kingston based production company, shipped a truck-load of lighting equipment to a…
A: Cash Discount: Invoices that are paid in full before the planned due date are entitled to a monetary…
Q: ABC made the following supplies for sale in January 2020: ABC Juice Limited manufactures and sells…
A: VAT refers to a type of tax which is levied or imposed upon the goods or services at every stage of…
Q: Good-Deal Inc. developed a new sales gimmick to help sell its inventory of new automobiles. Because…
A: “Hey, since there are multiple questions posted, we will answer first three questions. If you want…
Q: BM Motors, Inc. employs 40 sales personnel to market its line of luxury automobiles. The average car…
A: An indifference point is a point where both proposals provide the same results.it is also known by…
Q: Dream Big Pillow Co., pays 65% of its purchases in the month of purchase, 30% the month after the…
A: The cash payment to suppliers is recorded in the cash disbursement schedule.
Q: luna Company sold 700,000 boxes of “puto” mix under a new sales promotional program. Each box…
A: Liability is the obligation for the owner of the entity in which certain amounts are to be paid back…
Q: ABC Company runs a department store and grants loyalty awards to its customers. For every P 100…
A: Points earned on ₹ 100,00,000 @ 5 points on every P100= [(100,00,000/100) x 5] = 5,00,000 points.…
Q: Thorne Estates Limited advertises and sells residential property on behalf of its customers. The…
A: The question is based on the concept of time based cash analysis. A cash budget is a analysis cash…
Q: What amount of liability must be presented in the statement of financial position relating to…
A: Amount of liability must be presented in the statement of financial position relating to customer…
Q: Cigaro recognize for the month of April?
A: Step 1 Revenue is recognized, the following conditions must be met: Persuasive evidence of an…
Q: Indicate how much income Sunland should recognize in January, February, March, and April.
A: As per IFRS 15, principal has to recognise revenue on a gross basis where as agent has to recognise…
Q: During 2020, Day Company sold 500,000 boxes of cake mix under a new sales promotional program. Each…
A: Premium (Gift) means the product given free of cost to the customer on fulfilling the certain…
Q: Dream Big Pillow Co., pays 65% of its purchases in the month of purchase, 30% the month after the…
A: Introduction:- 65% of the purchase is paid in the month of purchase, 30% in the month after…
Q: On February 1, 2019, the telecommunications company sold cellular phones and unlimited calls service…
A: Revenue is the amount which is realized by the firm when it sells goods to the customers or provides…
Q: Pasti Berhad values, advertises and sells residential property on behalf of its customers. The…
A: Cash budget refers to an estimation of cash inflows and outflows in a business over a specified…
Q: On December 28, 2021, Tristar Communications sold 10 units of its new satellite uplink system to…
A: SOLUTION- A sales discount is a reduction in the price of a product or service that is offered by…
Q: For January, February, and March 2021, Mr. Santos plans to sell Chemical A in the following…
A: Budget is prepared to estimate or plan expenses and revenue to be incurred or generate in a…
Q: Cash & Credit Supermarket Inc. currently asks its credit customers to pay by the end of the month…
A: Net cost/benefit Analysis: It analyses the benefits of a decision and the costs associated with the…
Q: (a) How might Gerard Appliances use its accounts receivable and notes receivable to raise the cash…
A: The answers for the questions on raising the needed cash for Gerard Appliances Inc. are discussed…
Q: In late November 2014, a car dealership in southern Wisconsin was offering a new 2014 Toyota Corolla…
A: Monthly payments represent those outflows, which have an equal value to maturity value when paid…
Ayayai Inc. sells prepaid telephone cards to customers. Ayayai then pays the telecommunications company, TeleExpress, for the actual use of its telephone lines related to the prepaid telephone cards. Assume that Ayayai sells $4,100 of prepaid cards in January 2020. It then pays TeleExpress based on usage, which turns out to be 55% in February, 25% in March, and 20% in April. The total payment by Ayayai for TeleExpress lines over the 3 months is $3,000.
Indicate how much income Ayayai should recognize in January, February, March, and April. (If answer is 0, please enter 0. Do not leave any fields blank.)
January income
|
|
|
---|---|---|
February income
|
||
March income
|
||
April income
|
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase, and 5% in the second month following the purchase. What are the cash payments if it made the following purchases in 2018?Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is collected in the month of sale, 25% is collected the month after the sale, and 5% is collected the second month after the sale. How much cash will be collected in August if sales are estimated as $75,000 in June, $65,000 in July, and $90,000 in August?Now assume that it is several years later. The brothers are concerned about the firm’s current credit terms of net 30, which means that contractors buying building products from the firm are not offered a discount and are supposed to pay the full amount in 30 days. Gross sales are now running $1,000,000 a year, and 80% (by dollar volume) of the firm’s paying customers generally pay the full amount on Day 30; the other 20% pay, on average, on Day 40. Of the firm’s gross sales, 2% ends up as bad-debt losses. The brothers are now considering a change in the firm’s credit policy. The change would entail: (1) changing the credit terms to 2/10, net 20, (2) employing stricter credit standards before granting credit, and (3) enforcing collections with greater vigor than in the past. Thus, cash customers and those paying within 10 days would receive a 2% discount, but all others would have to pay the full amount after only 20 days. The brothers believe the discount would both attract additional customers and encourage some existing customers to purchase more from the firm—after all, the discount amounts to a price reduction. Of course, these customers would take the discount and hence would pay in only 10 days. The net expected result is for sales to increase to $1,100,000; for 60% of the paying customers to take the discount and pay on the 10th day; for 30% to pay the full amount on Day 20; for 10% to pay late on Day 30; and for bad-debt losses to fall from 2% to 1% of gross sales. The firm’s operating cost ratio will remain unchanged at 75%, and its cost of carrying receivables will remain unchanged at 12%. To begin the analysis, describe the four variables that make up a firm’s credit policy and explain how each of them affects sales and collections.
- Telephone Sellers Inc. sells prepaid telephone cards to customers. Telephone Sellers then pays the telecommunications company, TeleExpress, for the actual use of its telephone lines related to the prepaid telephone cards. Assume that Telephone Sellers sells $4,000 of prepaid cards in January 2020. It then pays TeleExpress based on usage, which turns out to be 50% in February, 30% in March, and 20% in April. The total payment by Telephone Sellers for TeleExpress lines over the 3 months is $3,000. January Income $ 0 February Income ( $ 0 x .0 x .0 ) $_____ March Income ( $ 0 x .0 x .0 ) $_____ April Income ($ 0 x .0 x .0) $______ Please I need the values that go inside the parenthesis. Thank youTelephone Sellers Inc. sells prepaid telephone cards to customers. Telephone Sellers then pays the telecommunications company, TeleExpress, for the actual use of its telephone lines related to the prepaid telephone cards. Assume that Telephone Sellers sells $4,000 of prepaid cards in January 2020. It then pays TeleExpress based on usage, which turns out to be 50% in February, 30% in March, and 20% in April. The total payment by Telephone Sellers for TeleExpress lines over the 3 months is $3,000. Indicate how much income Telephone Sellers should recognize in January, February, March, and April.Sunland, Inc. is a distributor of prepaid telephone cards to customers in its convenience stores. When Sunland sells the cards, it then pays the telecommunications company, TeleExpress, less a commission of 20 percent of the selling price to customers. Sunland receives $4,200 in cards in January 2020. Sunland sold 45% of the cards in February, 30% in March, and 25% in April. It costs TeleExpress $3,000 to provide the telephone service on the cards sold by Sunland.Indicate how much income Sunland should recognize in January, February, March, and April.
- Manual Company sells goods to Nolan Company during 2020. It offers Nolan the following rebates based on total sales to Nolan. If total sales to Nolan are 10,000 units, it will grant a rebate of 2%. If it sells up to 20,000 units, it will grant a rebate of 4%. If it sells up to 30,000 units, it will grant a rebate of 6%. In the first quarter of the year, Manual sells 11,000 units to Nolan at a sales price of $110,000. Manual, based on past experience, has sold over 40,000 units to Nolan, and these sales normally take place in the third quarter of the year. What amount of revenue should Manual report for the sale of the 11,000 units in the first quarter of the year?ABC Corp supplies laptops to large businesses. On July 1, 2018, ABC Corp entered into a contract with XYZ Co., under which XYZ Co, was to purchase laptops at P10,000 per unit. The contract states that if XYZ Co purchases more than 500 units in a year, the price per unit is reduced respectively to P9,000 per unit. ABC Corp’s year end is June 30. a.As at Sept. 30, 2018, XYZ Co had bought 70 laptops from ABC Corp. The latter estimated that XYZ Co purchases would not exceed 500 in the year to June 30, 2019 and XYZ Co would therefore not be entitled to the volume discount. b.During the quarter ended Dec. 31, 2018, XYZ Co expanded rapidly as a result of a substantial acquisition, and purchased an additional 250 laptops from ABC Corp. ABC Corp then estimated that XYZ Co’s purchases would exceed the threshold for the volume discount in the year to June 30, 2019. Required: Calculate the revenue ABC Corp would recognize in: a. Quarter ended Sept. 30, 2018Carla Vista Company sells goods to Pearl Company during 2020. It offers Pearl the following rebates based on total sales to Pearl. If total sales to Pearl are 11,200 units, it will grant a rebate of 2%. If it sells up to 19,600 units, it will grant a rebate of 4%. It if sells up to 29,200 units, it will grant a rebate of 6%. In the first quarter of the year, Carla Vista sells 9,000 units to Pearl at a sales price of $90,000. Based on past experience, Carla Vista has sold over 40,000 units to Pearl, and these sales normally take place in the third quarter of the year.
- Cainhurst Inc. had sales last year totaling $530,000, and its year-end Accounts Receivable were $62,750. The firm sells on terms that call for customers to pay within 30 days after the purchase, but some customers delay payment beyond this deadline (meaning they pay late). On average, how many days LATE do customers pay? Base your answer on a 365-day year when calculating the DSO.Thorne Estates Limited advertises and sells residential property on behalf of its customers. The company has been in business for only a short time and is preparing a cash budget for the first four months of 2021. Expected sales of residential properties are as follows: 2020 Dec - 10 Units sold 2021 Jan - 10 Units sold 2021 Feb - 15 Units sold 2021 March - 25 Units sold 2021 Apr - 30 Units sold The average price of each property is £180,000 and Thorne Estates charges a fee of 3% of the value of each property sold. Thorne Estates receives a 1% in the month of sale and the remaining 2% in the month after sale. The company has nine employees who are paid on a monthly basis. The average salary per employee is £35,000 per year. If more than 20 properties are sold in a given month, each employee is paid in that month a bonus of £140 for each additional property sold. Variable expenses are incurred at the rate of 0.5% of the value of each property sold and these expenses are paid in the month…Thorne Estates Limited advertises and sells residential property on behalf of its customers. The company has been in business for only a short time and is preparing a cash budget for the first four months of 2021. Expected sales of residential properties are as follows: 2020 Dec - 10 Units sold 2021 Jan - 10 Units sold 2021 Feb - 15 Units sold 2021 March - 25 Units sold 2021 Apr - 30 Units sold The average price of each property is £180,000 and Thorne Estates charges a fee of 3% of the value of each property sold. Thorne Estates receives a 1% in the month of sale and the remaining 2% in the month after sale. The company has nine employees who are paid on a monthly basis. The average salary per employee is £35,000 per year. If more than 20 properties are sold in a given month, each employee is paid in that month a bonus of £140 for each additional property sold. Variable expenses are incurred at the rate of 0.5% of the value of each property sold and these expenses are paid in the month…