Rasheed Company uses net method to record the sales made on credit. On June 30, 2019, it made sales of $45,000 with term 2/15, n/45. Prepare the required journal entries, if: On July 22 Rasheed company received full payment.

Rasheed Company uses net method to record the sales made on credit. On June 30, 2019, it made sales of $45,000 with term 2/15, n/45. Prepare the required journal entries, if: On July 22 Rasheed company received full payment.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 3MCQ

See similar textbooks

Related questions

Q: Record the journal entries for Bank’s Hardware Store for the following transactions. If an amount…

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

Q: A firm uses the gross method to record sales made on credit. On June 1, 2020, it made sales of…

A: Sales discount = Sales x discount rate = $45,000 x 4% = $1,800

Q: On December 5, 2019, Super Circuit Store sold gift certificates totalling $12,000. By December 31,…

A: Unearned revenue is summarised as follows: Unearned revenue is a prepayment made by the individuals…

Q: Upsilon Inc. began operations in the fourth quarter of 2019. For the first quarter ended March 31,…

A: Cost of Merchandise inventory on January 1, 2020 = Selling price of Merchandise inventory on January…

Q: Arvan Patel is a customer of Bank's Hardware Store. For Mr. Patel's latest purchase on January 1,…

A: Definition: Liabilities: The claims creditors have over assets or resources of a company are…

Q: Rasheed Company uses net method to record the sales made on credit. On June 30, 2019, it made a…

A: As per net method, the payment is made net of the discount amount if the payment is made within 15…

Q: Perfect Pet Company gave a creditor a 90-day, 6% note payable for $28,000 on December 1, 2019. What…

A: Principal amount = $ 28000 Coupon rate = 6% Time frame = 1 month period

Q: On January 1, 2022, Skysong, Inc. had Accounts Receivable of $52,500 and Allowance for Doubtful…

A: A Journal entry is a primary entry that records the financial transactions initially. The…

Q: Bramble Co. uses the net method to account for cash discounts. On June 1, 2020, it made sales of…

A: As the questions aksed has more than 1 question, the first question is answered. If you want the…

Q: Evergreen Company sells lawn and garden products to wholesalers. The company's fiscal year-end is…

A: A Journal entry is a primary entry that records the financial transaction initially. The…

Q: On December 1, 2019, Lynch Incorporated sold $17,000 of merchandise with terms 2/10, n/EOM. On…

A: Journal is the book of original entry in which all the financial transactions of the business are…

Q: On December 12, 2018, Pace Electronics received $24,000 from a customer toward a cash sale of…

A: Deferred revenues: Collection of cash in advance to render service or to deliver goods in future is…

Q: I. Record journal entries for the following transactions of Telesco Enterprises. Jan 1, 2018 Issued…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

Q: Eastman Corporation sells merchandise with a list price of $13,000 on February 1, 2019, with terms…

A: SOLUTION- A JOURNAL IS THE COMPANY'S OFFICIAL BOOK IN WHICH ALL TRANSACTIONS ARE RECORDED IN…

Q: Lambert Corporation sells merchandise at a list price of $70,000 with accompanying terms of 2/10,…

A: Gross Method & Net Method Sales are recorded at full value under gross method where as the…

Q: The following amounts appeared on the Mendelsteln Company's adjusted trial balance as of October 31,…

A: Net Sales = Sales - Sales return and allowances - Sales discount = 103400 - 8200 - 1195 = 94005

Q: On December 1, 2019, Lynch Incorporated sold $21,000 of merchandise with terms 2/10, n/EOM. On…

A: Cash Discounts: Some sellers allow deductions to their customers so that they can motivate their…

Q: The Bronxville Company has a Dec 31st year-end. On Nov 1, 2020, the Bronxville company sold…

A: Face value of notes receivable on November 1, 2020 $92,000 Rate of interest 5% Interest Revenue…

Q: Sheffield Co. uses the gross method to record sales made on credit. On June 1, 2020, it made sales…

A: gross method of recording sales - the sales transaction is recorded at its gross price without…

Q: Arvan Patel is a customer of Bank's Hardware Store. For Mr. Patel's latest purchase on January 1,…

A: Journal entry is the process of documenting commercial transactions for the first time in the books…

Q: The following amounts appeared on Davison Company's adjusted trial balance as of October 31, 2020,…

A: Income Statement:-It consists of expenses and revenue which results in Net income or loss. It is a…

Q: The balances at the end of each year are as follows: December 31, 2019 December 31,2020 $ $…

A: Debit card receivable account is a company's asset, therefore, it is to be shown on the asset side…

Q: Huhu Company and Hihi Company engaged in the following transactions during the month of July 2021.…

A: The question is related to the goos sold om credit. The credit policy os 2/10, net 30. It means that…

Q: Triton Publishing completed the following transactions during 2018. Journalize the transactions (…

A: Single Compound entry: It is the entry which involve more than one debit or credit entry and it is…

Q: Sheridan Co. uses the gross method to record sales made on credit. On June 1, 2020, it made sales of…

A: Discount=Sale×4%=$45,000×4%=$1,800

Q: On January 1, 2022, Nash's Trading Post, LLC had Accounts Receivable of $57,300 and Allowance for…

A: Journal entries are those entires which are used to record the transactions of the business in the…

Q: Lambert Corporation sells merchandise at a list price of $70,000 with accompanying terms of 2/10,…

A: Solution: According to data - Lambert Corporation sells merchandise at a list price of $70,000 with…

Q: On June 30, 2019, the balances of the accounts appearing in the ledger of Simkins Company are as…

A: Company S uses the periodic system as it records the accounts for purchases, freight-in-charge,…

Q: chapter 8

A: Required journal entry on March 31, 2021:

Q: On June 1, 2019, Cooper Company purchased inventory costing $93,000 by signing a 6%, nine-month,…

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

Q: Citron Mechanical Systems makes all sales on credit, with terms 1/15, n/30. During 2019, the list…

A: Net method: Under the net method, the sales are initially recorded with the net amount i.e., after…

Q: Tucker Ltd uses the gross method to record sales made on credit. On June 1, 2020, it made sales of…

A: Introduction: Journal: Recording of business transactions in a chronological order. First step in…

Q: Evergreen Company sells lawn and garden products to wholesalers. The company's fiscal year-end is…

A: Introduction Adjustment entries are recorded at the end of accounting period to properly ascertain…

Q: Arvan Patel is a customer of Bank's Hardware Store. For Mr. Patel's latest purchase on January 1,…

A: Annual Interest revenue = $490,000*11% Annual Interest revenue = $53,900

Q: The merchandise business had earned sales revenue of OMR 50,000 and Interest revenue of OMR 25,000…

A: Journal entry Accounts…

Q: ergreen Company sells lawn and garden products to wholesalers. The company's fiscal year-end is…

A: Date Account's title and explanation Debit ($) Credit ($) Feb. 28 Notes Receivable 20,000…

Q: the Outlets at Mill Lake, Inc., purchased inventory costing $42,000 by signing a 7%, six-month,…

A: Inventory: Inventories are the items of raw materials, WIP, and Finished goods which are used for…

Q: Restin Co. uses the gross method to record sales made on credit. On June 1, 2020, it made sales of…

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

Q: Following are the transactions of PQR Company in year 2019 and 2020: 2019 July 1 October 1 Borrowed…

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

Q: On January 1, 2022, Kingbird, Inc. had Accounts Receivable of $49,900 and Allowance for Doubtful…

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

Q: The following amounts appeared on Davison Company's adjusted trial balance as of October 31, 2020,…

A: Income statement: It presents a company’s total income and expenditure and whether the company is…

Q: On 5 December 2020, Manal Trading company sold goods to a customer on account for 37800 OMR. Which…

A: Accounts receivables: Accounts receivables can be defined as the account that hold up the amount due…

Q: Evergreen Company sells lawn and garden products to wholesalers. The company's fiscal year-end is…

A: It is the first step of recording financial transactions in the books of accounts that have two…

Q: On June 30, 2021, the Esquire Company sold some merchandise to a customer for $30,000. In payment,…

Q: Ward Company’s usual sales terms are net 60 days, FOB shipping point. Sales, net of returns and…

A: Net sales are calculated by deducting the returns or allowance from the total sales.

Q: On June 30, 2021, the Esquire Company sold some merchandise to a customer for $30,000. In payment,…

A: Journal is a place where accounting transactions are listed in the book keeping system before ledger…

Q: Arvan Patel is a customer of Bank's Hardware Store. For Mr. Patel's latest purchase on January 1,…

A: Journal entry is a process of recording the business transactions in the books of accounts for the…

Q: On January 1, 2022, Sunland Company had Accounts Receivable of $54,800 and Allowance for Doubtful…

A: Journal entry:-Way of recording any transaction of a company with debit and credit side. It works on…

Q: Evergreen Company sells lawn and garden products to wholesalers. The company's fiscal year-end is…

A: Since, you have asked for specific journal entry, so we will solve the same for you.

Q: Whispering Winds Corp. provides the following information for the month ended October 31, 2019;…

A: Net sales = Gross sales - Sales return and allowance and discount

Question

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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

Working:

VIEW

Step 2

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

Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120 in its accounts receivable. Additionally, Karras had a credit balance in its allowance for doubtful accounts of 4,350 and 9,420 at the beginning and end of the year, respectively. During the year, Karras made credit sales of 1,530,000, collected receivables in the amount of 1,445,700, and recorded bad debt expense of 83, 750. Required: Next Level Compute the amount of accounts receivable that Karras wrote off during the year and the amount of accounts receivable at the beginning of the year.
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2019: Instructions 1. Prepare a multiple-step income statement. 2. Prepare a statement of owners equity. 3. Prepare a balance sheet, assuming that the current portion of the note payable is 50,000. 4. Briefly explain how multiple-step and single-step income statements differ.
The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before any necessary year-end adjustment relating to the following: Goods were in transit from a vendor to Ashwood on December 31, 2019. The invoice cost was 85,000, and the goods were shipped FOB shipping point on December 29, 2019. The goods were received on January 2, 2020. Goods shipped FOB shipping point on December 20, 2019, from a vendor to Ashwood were lost in transit. The invoice cost was 40,000. On January 5, 2020, Ashwood filed a 40,000 claim against the common carrier. Goods shipped FOB destination on December 22, 2019, from a vendor to Ashwood were received on January 6, 2020. The invoice cost was 20,000, What amount should Ashwood report as accounts payable on its December 31,2019, balance sheet? a. 1,260,000 b. 1,285,000 c. 1,325,000 d. 1,345,000
Resin Milling issued a $390,500 note on January 1, 2018 to a customer in exchange for merchandise. The merchandise had a cost to Resin Milling of $170,000. The terms of the note are 24-month maturity date on December 31, 2019 at a 5% annual interest rate. The customer does not pay on its account and dishonors the note. Record the journal entries for Resin Milling for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on January 1, 2020, assuming interest has not been recognized before note maturity
Mark Industries issues a note in the amount of $45,000 on August 1, 2018 in exchange for the sale of merchandise. Which of the following is the correct journal entry for this sale? A. B. C. D.
Anderson Air is a customer of Handler Cleaning Operations. For Anderson Airs latest purchase on January 1, 2018, Handler Cleaning Operations issues a note with a principal amount of $1,255,000, 6% annual interest rate, and a 24-month maturity date on December 31, 2019. Record the journal entries for Handler Cleaning Operations for the following transactions. A. Entry for note issuance B. Subsequent interest entry on December 31, 2018 C. Honored note entry at maturity on December 31, 2019
On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan. Refer to RE6-10. On December 31, Jordan Inc. received 50,000 on assigned accounts. Prepare Jordans journal entries to record the cash receipt and the payment to McLaughlin.
Arvan Patel is a customer of Banks Hardware Store. For Mr. Patels latest purchase on January 1, 2018, Banks Hardware issues a note with a principal amount of $480,000, 13% annual interest rate, and a 24-month maturity date on December 31, 2019. Record the journal entries for Banks Hardware Store for the following transactions. A. Note issuance B. Subsequent interest entry on December 31, 2018 C. Honored note entry at maturity on December 31, 2019.
Refer to RE6-8. On April 23, 2020, McKinncy Co. receives a check, from Mangold Corporation for 8,500. Prepare the journal entry for McKinncy to record the collection of the account previously written off.
On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
On January 1, Incredible Infants sold goods to Babies Inc. for $1,540, terms 30 days, and received payment on January 18. Which journal would the company use to record this transaction on the 18th? A. sales journal B. purchases journal C. cash receipts journal D. cash disbursements journal E. general journal
Review the following transactions and prepare any necessary journal entries for Lands Inc. A. On December 10, Lands Inc. contracts with a supplier to purchase 450 plants for its merchandise inventory, on credit, for $12.50 each. Credit terms are 4/15, n/30 from the invoice date of December 10. B. On December 28, Lands pays the amount due in cash to the supplier.