Concept explainers
Cash Discounts and Purchase Returns
On April 6, 2018, Home Furnishings purchased $25,200 of merchandise from Una’s Imports, terms 2/10, n/45. On April 8, Home Furnishings returned $2,400 of the merchandise to Una’s Imports for credit. Home Furnishings paid cash for the merchandise on April 15, 2018.
Required
a. What is the amount that Home Furnishings must pay Una’s Imports on April 15?
b. Record the events in a horizontal statements model like the following one.
c. How much must Home Furnishings pay for the merchandise purchased if the payment is not made until April 20, 2018?
d. Record the payment in event (c) in a horizontal statements model like the previous one.
e. Why would Home Furnishings want to pay for the merchandise by April 15?
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Survey Of Accounting
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- Review the following transactions and prepare any necessary journal entries for Tolbert Enterprises. A. On April 7, Tolbert Enterprises contracts with a supplier to purchase 300 water bottles for their merchandise inventory, on credit, for $10 each. Credit terms are 2/10, n/60 from the invoice date of April 7. B. On April 15, Tolbert pays the amount due in cash to the supplier.arrow_forwardSold goods for $650, credit terms net 30 days. Which journal would the company use to record this transaction? A. sales journal B. purchases journal C. cash receipts journal D. cash disbursements journal E. general journalarrow_forward
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