Prepa3the journal entry of the transaction below: Jan. 5 Purchased the following merchandise from Rebis Co.: • 300 reams of bond paper (P300 list price per ream) • 500 pieces of ballpen (P5 list price per piece) • 100 pieces of standard calculator (P400 list price per piece) Payment terms: Trade discount on total cost of 10%, cash discount of 2/10, n/30.

Prepa3the journal entry of the transaction below: Jan. 5 Purchased the following merchandise from Rebis Co.: • 300 reams of bond paper (P300 list price per ream) • 500 pieces of ballpen (P5 list price per piece) • 100 pieces of standard calculator (P400 list price per piece) Payment terms: Trade discount on total cost of 10%, cash discount of 2/10, n/30.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money

Section: Chapter Questions

Problem 9.6E

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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?
On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of 15,000 and a maturity value (principal plus interest) of 15,400. The discount is calculated to be 385, and the accrued interest income is 100. The recourse liability is estimated to be 1,000. Prepare the journal entry of Phillips to record the sale of the note receivable.
Record the adjusting entry at the end of the momth based on the merchandise transaction below: Jan. 5 Purchased the following merchandise from Rebis Co.: 300 reams of bond paper (P300 list price per ream) 500 pieces of ballpen (P5 list price per piece) 100 pieces of standard calculator (P400 list price per piece) Payment terms: Trade discount on total cost of 10%, cash discount of 2/10, n/30. Jan. 6 Paid freight costs on January 5 purchase, P1,000. Jan. 9 Returned 5 pieces of standard calculator to Rebis Co. due to product defects. Credit memo made by Rebis were received that day. Jan. 15 Issued a 10% simple interest note payable to Bank of P.I. to finance the January 5 purchase made, which is to be paid on February 4, 2020. The amount received is equal to the balance to be paid to Rebis Co. (Note: see transactions related to Rebis Co. to determine the cash to be received, since the purpose of this note payable financing is to avail the cash discount). Jan. 15 Paid…
Pistons Company, a VAT-registered company, sold an item on credit for P5 000,000, exclusive of VAT, less multiple trade discounts of 20% and 5%. Question:8. The correct entry to record this sale is a. Accounts Receivable 5,600,000 Trade Discount 1,200,000 Sales 5,000,000 Output Tax Payable 600,000 Allowance for Sales Discounts 1,200,000 b. Accounts Receivable 5,600,000 Sales 5,000,000 Output Tax Payable 600,000 c. Accounts Receivable 3,800,000 Sales 3,800,000 d. Accounts Receivable 4,256,000 Sales 3,800,000 Output Tax Payable 456,000
1. Riverbed Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2020. The goods have a sales price of $630,700 (cost of $500,000). The terms are net 30. If Danone pays within 5 days, however, it receives a cash discount of $10,700. Past history indicates that the cash discount will be taken. On January 28, 2020, Danone makes payment to Riverbed for the full sales price. a)Prepare the journal entry(ies) to record the sale and related cost of goods sold for Riverbed Company on January 2, 2020, and the payment on January 28, 2020. Assume that Riverbed Company records the January 2, 2020, transaction using the net method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) b)Prepare the journal entry(ies) to record the sale and related cost of goods sold for Riverbed Company on January 2, 2020, and the payment on…
1. FDN Trading sold merchandise on credit to ABC Co in the amount of P64,000. The invoice is dated on November 1 with terms of 1/15, net 45. ABC Co returned defective goods worth P10,000. A partial payment of P16,000 was made by ABC Co. How much is the cash discount if the invoice is paid in order for ABC Co to take advantage of the discount? 2. During the period, FDN Trading issued another promissory note for an additional loan of P67,000 and made total payments of P72,000. At the end of the period, FDN Trading’s notes payable had a balance of P190,000. How much is the beginning balance of the notes payable? 3. FDN Accounting Services purchased office supplies for P31,000 on terms 20% down payment and the balance 2/10 n/30. How much is the increase in the total assets of the business?
1. Taking advantage of a 2/10, n/30 purchases discount is equal to a yearly savings rate of approximately a.20% b.2% c.24% d.36% 2. A sales invoice included the following information: merchandise price, $12,000; terms 1/10, n/eom, FOB shipping point with prepaid freight of $900 added to the invoice. Assuming that a credit for merchandise returned of $500 (before discount) is granted prior to payment and the invoice is paid within the discount period, what amount of cash should be received by the seller? a.$11,500 b.$12,285 c.$11,385 d.$10,480 3. Cumberland Co. sells $1,012 of merchandise to Hancock Co. for cash. Cumberland paid $730 for the merchandise. Under a perpetual inventory system, which of the following is the correct journal entry(ies)? a.debit Cash, $1,012; credit Merchandise Inventory, $730 b.debit Cash, $1,012; credit Sales, $1,012; and debit Cost of Merchandise Sold, $730; credit Merchandise Inventory, $730 c.debit Accounts Receivable, $1,012; credit Sales, $1,012; and…
In January, Lily Bhd sold goods at a quoted price of RM10,000 with a credit term of 2/10, net 90. Show the journal entries and amount to be measured in the receivables account; i）When cash discount of 2% is to be applied. ii）At initial measurement iii）During the year, a customer of Lily Bhd was deemed uncollectable. Give examples of any five situations where a debtor can be declared as Uncollectable Receivables.
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
16.Merchandise is sold for cash. The selling price of the merchandise is $6,000, and the sale is subject to a 7% state sales tax. The journal entry for the sale would include a credit to a.Sales Tax Payable for $420 b.Cash for $6,000 c.Sales for $5,580 d.Sales for $6,240 17. Dollar Co. sold merchandise to Pound Co. on account, $25,500, terms 2/15, net 45. Pound Co. paid the invoice within the discount period. What is the amount of sales from these transactions? a.$26,010 b.$24,990 c.$25,500 d.$16,000 18. When a buyer returns merchandise purchased for cash, the buyer will journalize the transaction as a….. a.debit to Cash and a credit to Sales b.debit to Cash and a credit to Merchandise Inventory c.debit to Merchandise Inventory and a credit to Cash d.debit to Sales and a credit to Accounts Payable 19. A sales invoice included the following information: merchandise price, $8,700; terms 1/10, n/eom, FOB shipping point with prepaid freight of $1,100 added to the invoice. Assuming that a…
McDowell Industries sells on terms of 3/10, net 30. All sales for the year are on credit amount to Ksh 912,500,000; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 40 days after their purchases. a. What is the days’ sales outstanding? b. What is the average amount of receivables? c. What is the percentage cost of trade credit to customers who take the discount? d. What is the percentage cost of trade credit to customers who do not take the discount and pay in 40 days? e. What would happen to McDowell’s accounts receivable if it toughened up on its collection policy with the result that all non-discount customers paid on the 30th day?
Presented below is information related to Lathorp Corp., which sells merchandise with terms 2/10, net 60. Lathorp records its sales and receivables net. Oct-1 Lathorp Corp. sold to Pittman Co. merchandise having a sales price of $15,000. 9 Specific accounts receivable of $11,000 (gross) are pledged to Aladin Credit Corp. as security for a loan of $7,000 at a finance charge of 7% of the amount of the loan. The finance company will make the collections. (All the accounts receivable are past the discount period.) Nov- Lathorp Corp. factors receivables with a carrying amount of $32,000 to Anderson 15 Inc. for $27,000 on a with recourse basis. The recourse provision has a fair value of $800. This transaction should be recorded as a sale. Dec- Pittman Co.. notifies Lathorp that it is bankrupt and will pay only 15% of its account. 31 Give the entry to write off the uncollectible balance using the allowance method. (Note: First record the increase in the receivable on Oct 11 when the discount…