What happens when a client (buyer) returns goods bought on credit
Q: If a customer pays with a credit card and the service has been provided, which of the following…
A: When a customer pays at a shop by Credit card, there incur Credit Card Expenses. The company of the…
Q: Identify if the two statements are either true or false. 1. The bill of lading is a document…
A: The given statement answer is given in the below step.
Q: Some business transactions purchase goods and services from the seller, on credit. The buyer of…
A: Purchase of Merchandise on Account - Purchases on Accounts means Inventory purchase without paying…
Q: If merchandise purchased on account is returned, the buyer may inform the seller of the details by…
A: Given, Goods are purchased by-merchandise is returned.
Q: types of discounts is given to the buyer if the buyer makes a bulk purchase ?
A: The amount that is a fixed rate and deductable from the invoice price is known to be discount. This…
Q: A credit memorandum is prepared when * an employee does a good job goods are sold on credit O goods…
A: Solution: A credit memorandum is prepared when "goods that were sold on credit are returned".
Q: Sales made to Ahmed on credit should be debited to.
A: The phrase "credit sales" alludes to the exchange of possession of products and services to a…
Q: Manufacturers, distributors, wholesalers, and retailers usually sell goods on credit rather than for…
A: Discount is given by seller to the buyer of goods and services. Discount reduces the amount of…
Q: In the revenue cycle (for sales on credit), a customer places an order for a certain product. Which…
A: Every time an order is received by an organisation, there is whole set of process that needs to be…
Q: Accounts receivable arise from credit sales to customers by both retailers and wholesalers. True or…
A: Accounts Receivables includes Debtors and Bills Receivables.
Q: Owner wants to purchase larger percentage of goods on credit. what advice would you give?
A: Goods purchase on credit: Goods are purchased by the company to sell by adding profit margin. Or…
Q: How are sales to customers using credit cards recorded?
A: Net sales means the amount of revenue earned and cost of goods sold means the cost of goods which…
Q: Sales Returns and Sales Allowances. What are Sales Discounts? What are their respective normal…
A:
Q: What are the ways that payments by a seller to a customer is done?
A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…
Q: A credit balance to a client’s accounts payable account representing right to receive payment for…
A: Accounts payable accounts are consisting of those supplier accounts from whom business has made…
Q: What is the nature of (a) a credit memo issued by the seller of merchandise, (b) a debit memo issued…
A: (a) A credit memo issued by the seller of merchandise.A credit memo is a commercial document that is…
Q: It is used to show who is responsible for paying for shipping and when the title of the goods passes…
A: Payment term used to show who is responsible for paying for shipping and when the title of the goods…
Q: Which of the following documents is issued by a customer to provide information about the nature of…
A: Every transaction that takes place in a business should be recorded appropriately in the books of…
Q: A company that provides a service or product to a customer on credit has an __________ from that…
A: A goods or service sold on credit is treated as assets of the business as these are customer…
Q: What is another name for the bill that the seller sends to the buyer when the buyer purchases…
A: Solution: Purchase order is prepared and sent by buyer to seller while placing an order. Receiving…
Q: The arrangements between buyer and seller as to when payments for merchandise are to be made are…
A: Solution The arrangement between the buyer and the seller as to when payment for merchendise are to…
Q: If merchandise sold on account is returned to the seller, the seller may inform the customer of the…
A: Solution:- If merchandise sold on account is returned to the seller, the seller may inform the…
Q: If you are the seller will you provide discount for customers? Why or why not? What type of discount…
A: solution concept In the trade transaction ,the practice of giving and taking…
Q: How would you find the invoice amount of merchandise that was returned in
A: When the merchandise is returned, The invoice amount of return will be credited to the customer's…
Q: What do you call to a document issued when you purchase or sold on account (credit basis)? 2. It is…
A: The accounting is a process to identify the business transactions, record the transactions and…
Q: When a cxompany extends credit directly to a customer for a purchase, the sale is recorded as a…
A: Sales can be in cash or credit. Cash sales amount is received immediately and credit sales amount is…
Q: Which of the following accounts is used in merchandising but not in service type of business?…
A: Service company deals with the intangible product whereas merchandise company buys tangible product…
Q: If a customer purchases merchandise on credit and return the defective merchandise before payment,…
A: Perpetual inventory system: The perpetual inventory system records and updates the inventory after…
Q: When a customer returns merchandise previously purchased on credit, the entry for the seller to…
A: Journal entry:- Customer Ac Dr to Sales A/C
Q: Goods returned by customer will be debited to which account?
A: When a customer returns the goods sold to him it is called sales return i.e. it reduces the income…
Q: the discount that is being acquired
A: First option is wrong because the cash discount is the discount given by the seller to the buyer for…
Q: Why do businesses often offer "Sales Discounts" to their customers?
A: Sales Discounts - Sales Discounts are the discounts given by the company to the customers. This…
Q: For a Credit Invoice Received, which entry should be made? debit to sales returns and…
A: Journal entry is the process of recording the business transactions in the books of accounts for the…
Q: If merchandise sold on account is returned to the seller the seller may inform the customer of the…
A: Concept introduction: An organization can be manufacturing, servicing of merchandising type. For a…
Q: Why do you think businesses extend credit to customers thereby creating accounts receivable?
A: Account receivable means where goods has been sold on credit and amount has not been received.…
Q: credit terms are terms for a. when the payments for merchandise are to be made b. when inventory is…
A: Credit terms refers to the agreement made between the seller and the buyer which defines the timing…
Q: How do you determine the invoice of merchandise returned?
A: Merchandise return refers to the inventory that is returned by the customer to the seller for their…
Q: When should revenue from the sale of merchandise normally be recognized? A)When the customer takes…
A: Revenue recognition concept says that when all the risk and reward has been passed on to the buyer…
Q: It is used to who is responsible for paying shipping and when the title of the goods passes from…
A: The goods and services are usually exchanged between two parties. One is seller and the other is…
Q: Which of the following journal entry is correct for the transactions of goods returned by a…
A: When we make a sales to customer, we pass the following entry:- Trade receivables Dr To…
Q: What is the primary reason why most businesses want to sell on a credit basis if it is preferable…
A: Businesses can sell on a cash-only basis or collect advance payments from customers to manufacture…
Q: If a customer purchases merchandise on credit and returns the defective merchandise beforepayment,…
A: When customer made purchases on credit from the business, then one side it will generate accounts…
Q: What is the purpose of the Purchase Returns and Allowances account? Why not just record a purchase…
A: Purchase accounts are used in periodic inventory system as a general ledger account in which…
Q: The journal entry to record a credit sale ignoring cost of goods sold is ANSWER: Accounts…
A: Journal Entry for Credit sale : Account Name Debit Credit Accounts…
Q: Manufacturers, distributors, wholesalers, and retailers usually sell goods on credit rather than for…
A: Discount:- It is a rebate which one party gives to another party to encourage his own benefit. It is…
Q: Explain in detail different types of documentation that the business would expect to change hands in…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: Manufacturers, distributors, wholesalers, and retailers usually sell goods on credit rather than for…
A: The invoice of a transaction includes the terms of payments and the amount of the transaction.…
What happens when a client (buyer) returns goods bought on credit?
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- If a customer purchases merchandise on credit and returns the defective merchandise before payment, what accounts would recognize this transaction? A. sales discount, cash B. sales returns and allowances, cash C. accounts receivable, sales discount D. accounts receivable, sales returns and allowancesIf a customer pays with a credit card and the service has been provided, which of the following accounts will be used to record the sales entry for this transaction? A. Cost of Goods Sold, Merchandise Inventory, Sales Revenue B. Sales Revenue, Credit Card Expense, Accounts Receivable C. Accounts Receivable, Merchandise Inventory, Credit Card Expense D. Cost of Goods Sold, Credit Card Expense, Sales RevenueWhat accounts are used to recognize a retailers purchase from a manufacturer on credit? A. accounts receivable, merchandise inventory B. accounts payable, merchandise inventory C. accounts payable, cash D. sales, accounts receivable
- Which of the following is not a characteristic of FOB Shipping Point? A. The buyer pays for shipping. B. The buyer owns goods in transit. C. The point of transfer is when the goods leave the sellers place of business. D. The point of transfer is when the goods arrive at the buyers place of business.Which of the following is not a characteristic of FOB Destination? A. The seller pays for shipping. B. The seller owns goods in transit. C. The point of transfer is when the goods leave the sellers place of business. D. The point of transfer is when the goods arrive at the buyers place of business.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.
- What are some benefits to a retailer for offering a discount to a customer?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 soldCan a sales journal be used to record sales on account and a cash sale? Why or why not?
