On June 1 of the current year, Pitt Company sold merchandise with a list price of P 5,000,000 to Bull company. Pitt allowed trade discounts of 30% and 20%. Credit terms were 2/10, n/30 and the sale was made FOB shipping point. Pitt prepaid P 200,000 of delivery costs. What will be the remittance to be received by Pitt from Bull?      a. P 2,744,000 b. P 2,940,000 c. P 2,944,000 d. P 3,140,000

Q: On November 15, 20x1, Lemon Co. ordered merchandise, on an FOB Shipping point term, from a foreign…

A: FOB states Fee on board. Here FOB shipping point term indicates that all expenses on transit after…

Q: ALS & Co. sold goods with an invoice price of P5,700,000 on January 1, 2021. Trade discounts were…

A: Solution 1: Total trade discount = (P5,700,000*25%) + (P5,700,000*75%*5%) = P1,425,000 + P213,750 =…

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: What is the net amount due (in $) on the order if the bill is paid by the 20th day?

A: Here is the answer for the above question.

Q: a. The amount of recorded sale b. The amount of cash received upon payment

A: Trade Discount - Trade Discount is given on the list price of the goods and the same is not recorded…

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: Boeing Truck Company received an invoice showing 12 tires at $114 each, 16 tires at $164 each, and…

A:

Q: Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after…

A: Adjustment entries are those that are made after the trial balance is made by taking balances from…

Q: On March 19, 2022, FDN Company purchased merchandise from ABC Company for P90,000 invoice price, on…

A: Cash payment as of March 31, will be calculated by considering all the payments and the return. The…

Q: Brimstone Co. purchased 1,865 items at $8.24 each less trade discounts of 26%, 12%. On August 27,…

A: Trade discount is the discount offered to encourage the buyer to purchase the item in bulk quantity.…

Q: Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after…

A: Refund Liability account represents the amount of revenue that an organization does not expects to…

Q: Oliver Valenzuela Traders purchased merchandise from San Jose suppliers for P3,600 list price,…

A: Amount of Payment to seller = Cost of goods purchased- Trade discount- cash discount- a cost paid on…

Q: ABC Company sold merchandise with P10,000 list price, subject to trade discount of 25%, and is paid…

A: 2/10 net 30 means 2% discount will be there if payment is made with in 10 days and no discount after…

Q: On May 15, 2010, the R. Luzon Book Distributors acquired for resale books on account with a list…

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

Q: Mel's Furniture received an invoice dated September 27 for 5 bedroom sets at $3,000 each. The…

A: The net payment made by the buyer to the seller is the invoice amount after reducing all the returns…

Q: On June 1, 2022, Pitt Corp. sold merchandise with a list price of Php 5,000 to Burr on account. Pitt…

A: Trade discount is providing in series of discount at the time of sale.  Cash discount will be 2℅ if…

Q: On January 2, Alfredo Corporation sold merchandise with a gross price of $100,000 to a customer with…

A: Formula: Sales discount = Net sales x Discount rate

Q: 2. On June 1, 2020, Pitt Company sold merchandise with a list price of P5,000,000 to Burr on…

A: 2/10 net 30 means 2% discount will be there if payment is made with in 10 days and no discount after…

Q: Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Thinkwell Enterprises Co pays the amount of $ 200,000 of merchandise owed to Al Bhaja Trading…

A: Discount on payment = amount payable x discount rate = 200000 x 3% = $6000

Q: On December 27, 20x1, XYZ received a sales order for a credit sale of goods with selling price of…

A: given that, Selling price of goods = P45,000  Shippment cost = P4,500 Goods received by buyer = 2…

Q: Silver Co. sold merchandise to Bronze Co. on account, P23,000, terms 2/15, ne 45. The cost of the…

A: The amount of a company's gross sales minus returns, allowances, and discounts is known as net…

Q: n November 15, 20x1, Lemon Co. ordered merchandise, on an FOB Shipping point term, from a foreign…

A: FOB states Fee on board. Here FOB shipping point term indicates that all expenses on transit after…

Q: Barans Company purchased merchandise on account from a supplier for $9,200, terms 1/10, n/30. Barans…

A: 1/10 net 30 means 1% discount will be there if payment is made with in 10 days and no discount after…

Q: On March 1, ZCX company made a sale of $87,500, on credit. If the credit terms were 2/10, n/30, what…

A: Lets discus basic things. Seller for the purpose of getting early payment from the buyer, gives the…

Q: Sara Company sold merchandise on credit with a list price of P105,000 and a trade discount of 10%.…

A: Trade discount = list price x trade discount rate = P105,000 x 10% = P10,500 Net sales = list price…

Q: On January 1, 2021, Paul Corp sold merchandise with a list price of P100,000 to James on account.…

A: Trade discount is the discount which is available to all customers whether made cash payment or not.…

Q: On December  1, BCX company made a sale of $87,500, on credit. If the credit terms were 2/10, n/30,…

A: The discount is given to the customers so as to receive payment from customers on the early basis.

Q: SumOne Limited is a retail store with a 30 June year-end. The company recorded the following: 2021…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: 22. On June 1, 2020, Penny Corp. sold merchandise with a list price of $40,000 to Linn on account.…

A: Invoice value of merchandise = $40,000 (1-0.30) (1-0.20) = $22,400

Q: On January 1, 20x1 Plaka Co. acquired goods for sale in the ordinary course of business for…

A: Given information, Purchase price = P250,000 Refundable purchase taxes included in above = 5000…

Q: On November 3, FDN Trading sold merchandise for P180,000 less 15-10 on terms 3/10 2/20 n/30. Two…

A: Gross purchase = List price x (1 - trade discount rate) x (1 - trade discount rate) =…

Q: Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after…

A: Estimated Sales return are deducted from the sales of the year to arrive at the net sales as per the…

Q: On June 1, 2020, ABC Company sold merchandise with a list price of P50,000 to XYZ Company on…

A: Under FOB destination, Goods are taken into inventory costing when goods are delivered to the buyer…

Q: Willy Company sold on credit merchandise having a list price of P200,000 with the following terms:…

A: Solution: Price after trade discount = 200000*90%*95% = 171,000 Sales discount = 171000*3% = 5130…

Q: SumOne Limited is a retail store with a 30 June year-end. The company recorded the following: 2021…

A: The short-term provisions are referred to as the current liability which is expected to be settled…

Q: FDN Trading sold merchandise on credit to ABC Co in the amount of P64,000. The invoice is dated on…

A: The question is based on the concept of Financial Management. As per the Bartleby guidelines we are…

Q: A company purchases merchandise for $23,000. The seller also offers credit terms of 2/10, n/30.…

A: Cost of purchase = 23000 Credit Terms = 2/10, n/30

Q: On May 1, RVQ Company sold goods for P6,000 on terms of 2/10, 1/15, n/30. Customer made a partial…

A: Introduction: Credit sales: Goods are sold on credit base to the customers called as Credit sales.…

Q: n January 4, JC sells merchandise costing $2,000 for $8,000 to RM with terms of 3/12, n30.   On…

A: Solution Concept Credit term 3/12, n30 means that if the amount is paid within 12 days of the…

Q: Invoice amount of $28,700 on June 25 Partial Payment made on July 20th of 6,000 Return goods of…

A: The Term 4/20 means if payment is made within a period of 20 days then a 4% discount is given to the…

Q: Problem: On December 31, Mr. Adrian sold equipment amounting to P640,000 with a trade discount of…

A: Purchase and sales are the major activities of every business operation. Goods and services have to…

Q: Vanessa company purchases merchandise with a list price of P25,000. The company receives a 35% trade…

A: Trade discount = List price x trade discount rate = P25000 x 35% = P8,750

Q: On June 1, 2021, Pitt Company sold merchandise with a list price of P5,000,000 to Burr on account.…

A: The gross profit is calculated as difference between sales and cost of goods sold.  Net sales is…

Q: A company makes a credit sale of $1,000 on June 13 according to the payment terms 5/10, n/30. On…

A: Payment terms of 5/10, n/30 states that if the payment is made within 10 days then the buyer is…

Q: ounting to Php 4,000. March 5 Returned Php 3,000 of the merchandise purchased on March 2 because…

A: Journal entry is the practice of recording commercial transactions for the first time in the books…

Q: Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after…

A: Journal entry refers to the process of recording commercial transactions for the first time in the…

Q: 1.On June 1, P8,000 of goods are sold with credit terms of 1/10, n/30. On June 3 the customer…

A: When goods are sold on discount with credit terms of 1/10, n/30, the discount allowed will be 1% of…

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is