Wildhorse Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2017. The goods have a sales price of $569,900 (cost of $500,000). The terms are net 30. If Danone pays within 5 days, however, it receives a cash discount of $9,900. Past history indicates that the cash discount will be taken. On January 28, 2017, Danone makes payment to Wildhorse for the full sales price.Prepare the journal entry(ies) to record the sale and related cost of goods sold for Wildhorse Company on January 2, 2017, and the payment on January 28, 2017. Assume that Wildhorse Company records the January 2, 2017, transaction using the net method.

Question

Wildhorse Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2017. The goods have a sales price of $569,900 (cost of $500,000). The terms are net 30. If Danone pays within 5 days, however, it receives a cash discount of $9,900. Past history indicates that the cash discount will be taken. On January 28, 2017, Danone makes payment to Wildhorse for the full sales price.

Prepare the journal entry(ies) to record the sale and related cost of goods sold for Wildhorse Company on January 2, 2017, and the payment on January 28, 2017. Assume that Wildhorse Company records the January 2, 2017, transaction using the net method.

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: Cullumber Company markets CDs of numerous performing artists. At the beginning of March, Cullumber C...

A: Periodic Inventory System: Periodic Inventory System refers to the accounting system under which the...

Q: 12.4 analysis    CVP analysis Current operating income for Bay Area Cycles Co. is $70,000. Selling p...

A: Calculate Company B’s breakeven point in units.

Q: Lightning Electronics is a midsize manufacturer of lithium batteries. The company’s payroll records ...

A: 1.Formula for Net pay as shown below:Net pay = Gross pay - (Employee income tax + FICA taxes) 

Q: Losses have been incurred at Millard Corporation for some time. In an effort to isolate the problem ...

A: Variable costing: This is a costing method that includes variable manufacturing costs to compute the...

Q: The following accounts balances were taken  from harris Corporation's year end adjusted trial balanc...

A: A closing journal entry is an entry passed at the end of the accounting period. The entry is passed ...

Q: Milden Company has an exclusive franchise to purchase a product from the manufacturer and distribute...

A: Contribution margin income statement: It is a kind of income statement which reports the sales, vari...

Q: Evan and Eileen Carter are husband and wife and file a joint return for 2018. Both are under 65 year...

A: Dependency exemption: The deduction allowed for the care and maintenance of qualifying dependent is ...

Q: Required information Problem 14-44 (LO 14-2) The following information applies to the questions disp...

A: Tax basis is the value of an asset that is used for computing gain or loss when the asset is sold. I...

Q: classify 3 activities of accounting

A: Click to see the answer

Q: Effects of a stock split Assume that you own 3,600 shares of $10 par value common stock and the comp...

A: Calculate the number of common stock after stock split.

Q: Purchase of investments $ 170 Dividends paid   1,120 Interest paid   320 Additional borrowing ...

A: Cash flow from financing activities:  This section of cash flows statement provides information abou...

Q: The following operating information reports the results of Swifty Company’s production and sale of 1...

A: Operating income: Operating income is the income earned by the business from its operating activitie...

Q: On December 31, 2016, Cullumber Company had 1,385,000 shares of $6 par common stock issued and outst...

A: Calculate the values related to preferred stock account that would appear on the stockholders\\\' eq...

Q: The materials handling charge for ABC Corp. is $0.50 per pound of finished product. What is the mate...

A: Material handling charges: Material handling charges is the cost incurred in the storage, movement, ...

Q: Problem 25-2A Analysis and computation of payback period, accounting rate of return, and net present...

A: 1. Compute the payback period:

Q: Sat 11:42 PM iew History Bookmarks Window Help v2.cengagenow.com Print Item Calculator eBook Asset t...

A: Fixed Asset turnover:  Fixed asset turnover is a ratio that measures the productive capacity of the ...

Q: Cost flow assumptions-FIFO AND LIFO using a periodic system  the beginning inventory was 600 units a...

A: FIFO or the First In First Out is the inventory valuation method in which the oldest inventory is di...

Q: Problem 25-2A Analysis and computation of payback period, accounting rate of return, and net present...

A: The Net Present Value of the Inflows have been computed by first computing the Net Cash inflow and t...

Q: Problem 14-2Concord Co. is building a new hockey arena at a cost of $2,620,000. It received a downpa...

A: Calculate Issue price of the bonds. 

Q: What is the difference between the direct method and the indirect method of presenting the cash flow...

A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and cas...

Q: Serial Problem Business Solutions LO P1, P2 Santana Rey is considering the purchase of equipment fo...

A: Payback Period: The payback period is a capital budgeting method which determines the time period re...

Q: Page 1 of 2

A: Compute variable components of shipping expense: 

Q: Given below is an excerpt from a management performance report:   Budget Actual Difference...

A: Calculate Management performance of actuals: 

Q: At the end of the year, overhead applied was $42,000,000. Actual overhead was $40,300,000. Closing o...

A: Under standard costing, overhead rates are initially recorded at budgeted rates. However, at the end...

Q: Wildhorse Co. purchased equipment on January 1 at a list price of $155000, with credit terms 3/10, n...

A: Compute the total cost of new equipment: 

Q: Waterways Corporation is preparing its budget for the coming year, 2020. The first step is to plan f...

A: Click to see the answer

Q: I need help solving this problem, thanks!

A: a) Compute the number of units in work in process inventory at March 31: 

Q: O 3Depreciation calculation methods Millco, Inc., acquired a machine that cost $1,200,000 early in 2...

A: a.Calculate depreciation expense:Annual Depreciation = (Cost - Salvage Value) / Expected useful life...

Q: Problem 9-3A Carla Vista Co. had the following assets on January 1, 2017. Item   Cost   Purchase...

A: Depreciation expense: Depreciation expense is a non-cash expense, which is recorded on the income st...

Q: What does the concept "substance over form" stand for?  Can you provide me with some examples?

A: Substance over form: It is an accounting concept, which means that the business must record those tr...

Q: Gandrud Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one d...

A: Flexible budget: A flexible budget is a budget which varies with the activity level of the business....

Q: Swifty Industries is considering the purchase of new equipment costing $432,000 to replace existing ...

A: Net present values is the difference between present value of inflows of cash and present value of o...

Q: Hi i need help answering this question please! The last section got a bit cut off for part e but it ...

A: Click to see the answer

Q: Valerie's & Christopher, a large marketing firm, adjust in accounts at the end of each months. T...

A: Click to see the answer

Q: Prepare a contribution margin format income statement China Imports, Inc., sold 18,000 units in May....

A: Contribution margin format income statement of China Imports, Inc. is prepared using MS Excel:

Q: I am resubmitting this question as the answer to number two is incorrect from the guidance I was giv...

A: Calculate the sales value for each component.

Q: What is probably the greatest single reason conventional financial statements are inadequate for ana...

A: Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to create accoun...

Q: Hi, I'm having trouble finding the value of the preferred stock for year 2. The first time I did the...

A: Calculate the dividends per share of preferred stock for the 2nd year:

Q: The following condensed balance sheet is presented for the partnership of Axel, Barr and Cain, who s...

A: Click to see the answer

Q: The production budget for Manner Company shows units to be produced as follows: July, 620; August, 6...

A: Direct labor budget:Direct labor budget estimates the total number of direct labor hours and total d...

Q: Varto Company has 12,400 units of its sole product in inventory that it produced last year at a cost...

A: It is to be noted that the last of th inventory incurred last year is a sunk cost and not relevant f...

Q: Concord Company produces Optimist sailboats. The costs of producing 107000 tiller extensions for use...

A: Compute the increase or decrease in the net income: 

Q: Larkspur, Inc.currently has 720,000 shares of common stock outstanding. Larkspur, Inc. is considerin...

A: By issuing stock, the company will have no interest expenses from bond. The number of outstanding sh...

Q: Many businesses borrow money during periods of increased business activity to finance inventory and ...

A: Calculating the value of interest on the note payable at due date. We have,The value of interest = A...

Q: A 25-year annuity was purchased with $225,000 that had accumulated in a RRSP.  The annuity provides ...

A: DefinitionRRSP:  A Registered Retirement Saving Plan is an investment cum retirement saving plan for...

Q: Concord Company gathered the following data about the three products that it produces: Product   ...

A: We can solve the question as follows :

Q: Suppose your company reports $200 of net income and $48 of cash dividends paid, and its comparative ...

A: 1. Cash flow from operating activities include all activities that are required in the day to day op...

Q: The following information was drawn from the Year 5 balance sheets of two companies:  Company Ass...

A: Return on equity ratio:  Rate of return on equity ratio is used to determine the relationship betwee...

Q: Cheyenne Corp. was organized on January 1, 2017. It is authorized to issue 21,000 shares of 7%, $53 ...

A: The journal entries for the transactions are as follows :

Q: What is the definition of 'taxable income'?

A: Income: Income includes the income of an individual in the form of wages, salary, pension, etc. The ...