Q-2: What is Gross Invoice Method and Net Invoice method? Record the transactional entries for the cash received by the seller within the discounting period. What would be the transactional entry for post discounting period?

Q-2: What is Gross Invoice Method and Net Invoice method? Record the transactional entries for the cash received by the seller within the discounting period. What would be the transactional entry for post discounting period?

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter10: Cash Receipts And Cash Payments

Section: Chapter Questions

Problem 2QY: What is the entry to record the cash received on a sale of 500, credit terms 1/15, n/30, if the...

See similar textbooks

Related questions

Q: Which of these transactions requires a debit entry to Cash?A. paid balance due to suppliersB. sold…

A: Cash is one of the asset held by the business, for which normal balance is debit balance. Any…

Q: Which of the following transaction will be correct in regards to Source document of a Business? O a.…

A: Source documents are sort of documents that are part of accounting and are created when any monetary…

Q: Describe each transaction. b. What was the invoice amount of the merchandise that was returned?

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

Q: Which one of the four methods of payments creates an accounts receivable? Select one: a.…

A: Accounts receivable: Accounts receivable refers to the amounts to be received within a short period…

Q: How much is the total net purchases to be recorded by the company using the net method of accounting…

A: In net method, the purchases would be recorded as net of discount. This means irrespective of…

Q: hen a company receives cash from customers before earning the revenue,----------------------will be…

A: As per revenue recognition principle a revenue is recognized only when the service has been provided…

Q: The time between cash disbursement and cash collection is which of the following? A- accounts…

A: Solution- The cash to cash cycle is the fundamental quantity between once a business…

Q: The entry to record collection of trade receivables under cash basis of accounting is* debit to…

A: Following is the answer to the given question

Q: True Or False? The entry to record a cash receipt from a customer when the service is to be…

A: The assets are debited and liabilities are credited.

Q: What do you call to the evidence of receipt of cash by the seller? 2. What do you call to the one…

A: 1. whatever evidence that you received by the seller for receiving the cash has formal format it is…

Q: Identify the correct journal entry when cash is received from customers - periodic inventory system…

Q: Aliability created for receiving cash for future services to be provided is termed a(n) O service…

A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…

Q: The entry to record collection of trade receivables under cash basis of accounting is A. debit to…

A: Under cash basis of accounting only cash transections are recorded such as cash collection, Cash…

Q: Which of the following statements about cash received prior to the recognition of revenue in the fi…

A: Cash received prior to the recognition of revenue in financial statement is prepaid income for which…

Q: Sales on account Cash purchases Credit purchases Expenses paid

A: In cash basis of accounting, only cash inflows and outflows are recorded. In accrual basis of…

Q: he purchase of supplies with cash would be recorded as a. Debit Cash; Credit Supplies Expense. b.…

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

Q: Discuss the conversion from cash basis to accrual basis of an increase in accounts or notes payable…

A: Under the cash basis of accounting, business transactions are only recorded when the cash related to…

Q: Under accrual-basis accounting,sales made on credit are usually reported as: A.liabilities…

A: There are two type of bases used in accounting purpose. One is cash basis of accounting and other is…

Q: I’m confused on how to enter these into the table. Specifically b & c. My table options are…

A: ACCOUNT RECEIVABLE; An account receivable is defined as it is money that has not been paid by…

Q: Classify the following activities as part of the identifying (I), recording (R), or communicating…

A: Identifying means identification of relevant transactions. Recording means recording the accounting…

Q: When company uses special journal , the transaction of settling company liabilities record in.. a.…

A: Journal is the recording of financial transactions according to the dual entity concept and it helps…

Q: Which of the following entries for goods sold by cash is correct? a) Cash Dr, AR Cr b) AR Dr,…

A: Goods or services provided by the business can be sold for cash or on account. Cash sales are sales…

Q: Which of the following balance sheet items are commonly associated with the purchases and cash…

A: The balance sheet is one of the financial statements of a company, that is, prepared at the end of…

Q: Under perpetual inventory system- what is the journal entry when payment is made on accounts payable…

A: Perpetual inventory system: It is a method of inventory management that records real-time…

Q: When converting from cash basis to accrual basis accounting, which of the following adjustments…

A: Cash receipts from customers under cash basis of accounting includes receipts collected from…

Q: The following source document is used to support the transactions related to returns outwards to…

A: The company is in constant interaction with its suppliers and customers and there are many…

Q: When the customer pays the money to the company after the discount period, which one of the…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: When posting the column totals of a cash payments journal, a debit should be posted to a.Unearned…

A: answer c Account Payable is right answer.

Q: which of the following account will be least likely involved in the purhasing sub-process of the…

A: The journal entries are prepared to keep the record of day to day transactions of the business. The…

Q: Which of the following transactions is credited? A) WHEN CHARGED B) PURCHASE OF COMMERCIAL GOODS…

A: Credit transaction: Any transaction by the terms of which the repayment of money loaned, or loan…

Q: Identify whether each of the following transactions, are accrual, deferral, or neither. Sold goods…

A: Sales made but payment not received is accrued revenue.

Q: he time between the acquisition of inventory and the collection of cash from receivables is which of…

A: The operating cycle(OC) is the time from the beginning of production process to collection of cash…

Q: Identify the correct journal entry when cash is received from customers - periodic inventory system…

A: Customers are accounts receivables which are decreased and cash is increased.

Q: cash disbursements for selling and administrative expenses on the

A: Non cash expense is an expense for which there will be no outflow of cash required to settle.…

Q: Transactions involved in the purchases and cash disbursements cycle include: A Debit inventory,…

A: Purchases and disbursements cycle is one of the important cycle used in accounting information…

Q: Calculate the cash discount and the net amount due the transaction (in $). Amount of Invoice Terms…

A: Credit terms includes terms & conditions related to discounts and interest or late fee…

Q: When converting accrual basis to cash basis of accounting, which of the following adjustments should…

A: Cash basis accounting: In cash basis accounting , revenue are recognized when payment is received…

Q: Which of the following document will be given by the supplier at the time of receipt of cash for the…

A: Receipts is issued when some party is paying cash and other is receiving cash . The party receiving…

Q: Which of the following entries records receiving the cash payment from a customer for previous…

A: When a service is performed and the cash is receivable on such service from customer then such…

Q: 6. Indicate whichjoumal would be used to record the following transactions. Select from the…

A: Sales Journal – For all credit sales of inventory Purchase Journal – For all credit purchase of…

Question

Q-2: What is Gross Invoice Method and Net Invoice method? Record the transactional
entries for the cash received by the seller within the discounting period. What would be
the transactional entry for post discounting period?

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

Sales

VIEW

Answer

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

Name two situations where cash would be remitted to a retailer from a manufacturer after purchase.
Name two situations where cash would be remitted to a customer from a retailer after purchase.
Which of the following accounts are used when recording a purchase? A. cash, merchandise inventory B. accounts payable, merchandise inventory C. A or B D. cash, accounts payable
Which two accounts are used to recognize shipping charges for a buyer, assuming the buyer purchases with cash and the terms are FOB Shipping Point? A. delivery expense, cash B. merchandise inventory, cash C. merchandise inventory, accounts payable D. The buyer does not record anything for shipping since it is FOB Shipping Point.
For each of the following transactions, state which special journal (Sales Journal, Cash Receipts Journal, Cash Disbursements Journal, Purchases Journal, or General Journal) and which subsidiary ledger (Accounts Receivable, Accounts Payable, neither) would be used in recording the transaction. A. Sold inventory for cash B. Issued common stock for cash C. Received and paid utility bill D. Bought office equipment on account E. Accrued interest on a loan at the end of the accounting period F. Paid a loan payment G. Bought inventory on account H. Paid employees I. Sold inventory on account J. Paid monthly insurance bill
Determining amounts to be paid on invoices Determine the amount to be paid in full settlement of each of the following invoices, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period.
From the following list, identify which items are considered original sources: A. accounts receivable B. receipt from post office for post office box C. purchase order D. general ledger E. adjusted trial balance F. statement of retained earnings G. electric bill H. packing slip I. company expense account J. statement of cash flows
Which of the following accounts are used when recording a purchase using a periodic inventory system? A. cash, purchases B. accounts payable, sales C. accounts payable, accounts receivable D. cash, merchandise inventory
We record purchases of inventory for cash in which journal(s)?
Which of the following accounts are used when recording the sales entry of a sale on credit? A. merchandise inventory, cash B. accounts receivable, merchandise inventory C. accounts receivable, sales D. sales, cost of goods sold
What is the entry to record the cash received on a sale of 500, credit terms 1/15, n/30, if the payment is received within the discount period? a. Accounts Receivable 500 DR; Cash 500 CR b. Cash 500 DR; Accounts Receivable 500 CR c. Cash 495 DR, Sales Discount 5 DR; Accounts Receivable 500 CR d. Accounts Receivable 500 DR; Cash 495 CR, Sales Discount 5 CR e. Cash 500 DR; Sales Discount 5 CR, Accounts Receivable 495 CR
When converting from cash basis to accrual basis accounting, which of the following adjustments should be made to cash receipts from customers to determine accrual basis service revenue. a. Subtract ending accounts receivable. b. Subtract beginning unearned service revenue. c. Add ending accounts receivable. d. Add cash sales.