Required information [The following information applies to the questions displayed below.] At the beginning of 2018, the Redd Company had the following balances in its accounts: $16,900 25,000 30,000 Cash Inventory Common stock Retained earnings 11,900 During 2018, the company experienced the following events: 1. Purchased inventory that cost $15,200 on account from Ross Company under terms 1/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $200 were paid in cash. 2. Returned $800 of the inventory that it had purchased because the inventory was damaged in transit. The seller agreed to pay the return freight cost. 3. Paid the amount due on its account payable to Ross Company within the cash discount period. 4. Sold inventory that had cost $18,000 for $32,000 on account, under terms 2/10, n/45. 5. Received merchandise returned from a customer. The merchandise originally cost $800 and was sold to the customer for $1,500 cash. The customer was paid $1,500 cash for the returned merchandise. 6. Delivered goods FOB destination in Event 4. Freight costs of $140 were paid in cash. 7. Collected the amount due on the account receivable within the discount period. 8. Took a physical count indicating that $21,100 of inventory was on hand at the end of the accounting period.
Required information [The following information applies to the questions displayed below.] At the beginning of 2018, the Redd Company had the following balances in its accounts: $16,900 25,000 30,000 Cash Inventory Common stock Retained earnings 11,900 During 2018, the company experienced the following events: 1. Purchased inventory that cost $15,200 on account from Ross Company under terms 1/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $200 were paid in cash. 2. Returned $800 of the inventory that it had purchased because the inventory was damaged in transit. The seller agreed to pay the return freight cost. 3. Paid the amount due on its account payable to Ross Company within the cash discount period. 4. Sold inventory that had cost $18,000 for $32,000 on account, under terms 2/10, n/45. 5. Received merchandise returned from a customer. The merchandise originally cost $800 and was sold to the customer for $1,500 cash. The customer was paid $1,500 cash for the returned merchandise. 6. Delivered goods FOB destination in Event 4. Freight costs of $140 were paid in cash. 7. Collected the amount due on the account receivable within the discount period. 8. Took a physical count indicating that $21,100 of inventory was on hand at the end of the accounting period.
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Accounting For Merchandising Businesses
Section: Chapter Questions
Problem 9PB: On June 30, 2019, the balances of the accounts appearing in the ledger of Simkins Company are as...
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how does one calucluate revenues from the question (see image attached )
answer is C
![Required information
[The following information applies to the questions displayed below.]
At the beginning of 2018, the Redd Company had the following balances in its accounts:
$16,900
25,000
30,000
Cash
Inventory
Common stock
Retained earnings
11,900
During 2018, the company experienced the following events:
1. Purchased inventory that cost $15,200 on account from Ross Company under terms 1/10, n/30. The merchandise was
delivered FOB shipping point. Freight costs of $200 were paid in cash.
2. Returned $800 of the inventory that it had purchased because the inventory was damaged in transit. The seller agreed
to pay the return freight cost.
3. Paid the amount due on its account payable to Ross Company within the cash discount period.
4. Sold inventory that had cost $18,000 for $32,000 on account, under terms 2/10, n/45.
5. Received merchandise returned from a customer. The merchandise originally cost $800 and was sold to the customer
for $1,500 cash. The customer was paid $1,500 cash for the returned merchandise.
6. Delivered goods FOB destination in Event 4. Freight costs of $140 were paid in cash.
7. Collected the amount due on the account receivable within the discount period.
8. Took a physical count indicating that $21,100 of inventory was on hand at the end of the accounting period.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F770204ec-0a4f-4e72-b92b-edfc2393e278%2F0ab08584-a847-4ab2-9dce-ed1b0e34fa1e%2Fbn8pkj.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
At the beginning of 2018, the Redd Company had the following balances in its accounts:
$16,900
25,000
30,000
Cash
Inventory
Common stock
Retained earnings
11,900
During 2018, the company experienced the following events:
1. Purchased inventory that cost $15,200 on account from Ross Company under terms 1/10, n/30. The merchandise was
delivered FOB shipping point. Freight costs of $200 were paid in cash.
2. Returned $800 of the inventory that it had purchased because the inventory was damaged in transit. The seller agreed
to pay the return freight cost.
3. Paid the amount due on its account payable to Ross Company within the cash discount period.
4. Sold inventory that had cost $18,000 for $32,000 on account, under terms 2/10, n/45.
5. Received merchandise returned from a customer. The merchandise originally cost $800 and was sold to the customer
for $1,500 cash. The customer was paid $1,500 cash for the returned merchandise.
6. Delivered goods FOB destination in Event 4. Freight costs of $140 were paid in cash.
7. Collected the amount due on the account receivable within the discount period.
8. Took a physical count indicating that $21,100 of inventory was on hand at the end of the accounting period.
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