Toronto Company decided to write off Chris account on November 1, 2020 using the direct write off method. Chris had previously purchased merchandise on account and worth $10,000 from Toronto Company. The journal entry to record November 1 transaction will include: Debit Accounts Receivable $10,000. O Credit Accounts Receivable $10,000. Credit Sales Revenue $10,000. O Credit Bad Debt Expense $10,000. O None of the above

Toronto Company decided to write off Chris account on November 1, 2020 using the direct write off method. Chris had previously purchased merchandise on account and worth $10,000 from Toronto Company. The journal entry to record November 1 transaction will include: Debit Accounts Receivable $10,000. O Credit Accounts Receivable $10,000. Credit Sales Revenue $10,000. O Credit Bad Debt Expense $10,000. O None of the above

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter4: Accounting For Retail Operations

Section: Chapter Questions

Problem 4.1P: Purchase-related transactions The following selected transactions were completed by Epic Co. during...

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Purchase-related transactions The following selected transactions were completed by Epic Co. during August of the curr ent year: Aug. 3. Purchased merchandise on account for $33400, terms FOB destination. 2/10. n/30. 9. Issued debit memorandum for $2500 ($2450 net of 2% discount) for merchandise from the August 3 purchase that was damaged in shipment. 10. Purchased merchandise on account, $25,000, terms FOB shipping point, n/com. Paid $600 cash to the freight company for delivery of the merchandise. 13. Paid for invoice of August 3, less debit memorandum of August 9 31. Paid for invoice of August 10. Instructions Illustrate the effects of each of the preceding transactions on the accounts and financial statements of Epic Co. Identify each transaction by date.
Serene Company purchases fountains for its inventory from Kirkland Inc. The following transactions take place during the current year. A. On July 3, the company purchases thirty fountains for $1,200 per fountain, on credit. Terms of the purchase are 2/10, n/30, invoice dated July 3. B. On August 3, Serene does not pay the amount due and renegotiates with Kirkland. Kirkland agrees to convert the debt owed into a short-term note, with an 8% annual interest rate, payable in two months from August 3. C. On October 3, Serene Company pays its account in full. Record the journal entries to recognize the initial purchase, the conversion, and the payment.
Goods in Transit Gravais Company made two purchases on December 29, 2019. One purchase for 3,000 was shipped FOB destination, and the second for 4,000 was shipped FOB shipping point. Neither purchase had been received nor paid for on December 31, 2019. Required: Which of these purchases, if either, does Gravais include in inventory on December 31, 2019? What is the cost?
company A issues an invoice upon selling its product to company bBelow is the information extracted from the invoiceprice : $ 100quantity: 50Term: n/3; 2/10date : 2022-oct-10 find the discount amount? and discount period?
Kristopher Company sold $40,500 of goods to Evan Company on credit on March 1, 2022. Terms were 3/10, n/30. Required: Prepare the journal entry on Kristopher’s books to record the sale. Prepare the journal entries to record collection, if the customer paid on April 8, 2021. Prepare the journal entry to record collection, if the customer paid on March 8, 2021.
26) th March 2019, Max business purchased RO 60,000 with credit terms of 2/10, n30 and shipping terms FOB shipping point. What is the journal entry to record the above in the books of buyer under Perpetual inventory system? a. Account payable RO 60,000 Dr / Merchandise inventory RO 60,000 Cr b. Purchases RO 60,000 Dr / Account payable RO 60,000 Cr c. Account payable RO 60,000 Dr / Purchases RO 60,000 Cr d. Merchandise inventory RO 60,000 Dr / Account payable RO 60,000 Cr
27) On 7th April,2019, Apple mart sold RO 84,000 with credit terms of 3/10, n30 and the Original cost amounted to RO 69,000. What is the journal entry to record the Cost of goods sold in the books of seller under Perpetual inventory system? a. Cost of goods sold RO 84,000 Dr / Merchandise inventory RO 84,000 Cr b. Cost of goods sold RO 69,000 Dr / Merchandise inventory RO 69,000 Cr c. Account receivable RO 84,000 Dr / Sales revenue RO 84,000 Cr d. Account receivable RO 69,000 Dr / Sales revenue RO 69,000 Cr
first sale! They sold $100,000 worth of goods on credit, with terms 3/10, n/20, on 2/1/2021. Record this journal entry using both the net and gross methods. Record the journal entry if the customer pays off this account on 2/5/2021. Record the journal entry if the customer pays off this account on 3/1/2021.
Golden Furniture in Muscat follows periodic inventory method. The business Purchased Merchandise 100 study table at a cost of OMR 70 each under the terms of 3/20 n/60 on 1st March 2019. Golden Furniture discovers that 40 study table are office table. Therefore the business returns to the supplier for a full refund on 12th March 2019. Which of the following double entry will be correct assuming that the business paid to the supplier on 31st March 2019? a. Debit : Accounts payable RO 4200 Credit: Cash RO 4200 b. Debit : Accounts payable RO 4200 Credit: Cash RO 4074 Credit Purchase discount RO 126 c. Debit : Merchandise inventory RO 7000 Credit: Accounts payable RO 7000 d. Debit : Accounts payable RO 2800 Credit: Merchandise inventory RO 2800
Golden Furniture in Muscat follows periodic inventory method. The business Purchased Merchandise 100 study table at a cost of OMR 70 each under the terms of 3/20 n/60 on 1st March 2019. Golden Furniture discovers that 40 study table are office table. Therefore the business returns to the supplier for a full refund on 12th March 2019. Which of the following double entry will be correct assuming that the business paid to the supplier on 31st March 2019? a. Debit : Merchandise inventory RO 7000 Credit: Accounts payable RO 7000 b. Debit : Accounts payable RO 4200 Credit: Cash RO 4200 c. Debit : Accounts payable RO 4200 Credit: Cash RO 4074 Credit Purchase discount RO 126 d. Debit : Accounts payable RO 2800 Credit: Merchandise inventory RO 2800 Clear my choice
Jungkook Co. purchased goods with invoice price of P3,000 on account on December 27, 2021. The related shipping costs amounted to P50. The seller shipped the goods on December 31, 2021. Jungkook Co. received the goods on January 2, 2022 and settled the account on January 5, 2022. How much is the capitalizable cost of the inventory purchased if the terms of the shipment are FOB shipping point, freight prepaid? A. 0 B. 2,950 C. 3,050 D. 3,000
2. On April 18, 2020, C Company purchased merchandise from Z Company amounting to P80,000 under the terms; 2/15, n/45 FOB Shipping Point freight Prepaid. Z Company paid freight amounting to P3,000. On April 20, 2020, C Company returned defective goods to Z Company amounting to P6,000. C Company paid the account within the discount period to avail of a discount. The accountant of C Company when he computed the cost of merchandise purchased told the manager that the total cost was P 72,520. On the other side, the accountant of Z Company reported a net sales of P69,520. In this situation, there might be one or the 2 companies are wrong. Who do you think is not reporting the correct value C or Z? Explain. Using the data in no. 4, in case both of them are wrong, what is the correct cost of merchandise purchased for C Company and the correct net sales for Z Company?. Present your answer with an explanation why such answer is correct.