On April 18, 2016, Bontanica Company, a garden retailer, purchased $9,800 of seed, terms 2/10, n/30, from Whitetail Seed Co. Even though the discount period had expired, Shelby Davey subtracted the discount of $196 when he processed the documents for payment on May 1, 2016. Discuss whether Shelby Davey behaved in a professional manner by subtracting the discount, even though the discount period had expired.
Q: On April 1, 2016, Meyers Company purchased a bulldozer. Payment, totaling $70,000, is not due until…
A: The amount for purchase of machine is payable after 2 years
Q: GoodBuy sells gift cards redeemable for GoodBuy products either in store or online. During 2018,…
A: Given information is: GoodBuy sells gift cards redeemable for GoodBuy products either in store or…
Q: On March 1, 2020, Windsor Company sold goods to Goosen Inc. for $714,000 in exchange for a 5-year,…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: On December 1, 2020, Hidilyn Inc. delivered 10 boxes of Otap bread and 10 packs of sample bread, for…
A: Here discuss about the details of the consignment sales and its remittance to the consignor related…
Q: CHAS, Inc. is engaged in the sale of parts for electric gate motors for residential and commercial…
A: Accounts Payable seems to be the title used whenever a company purchases goods on credit and must…
Q: On April 18, 2019, Bontanica Company, a garden retailer, purchased $9,800 of seed, terms 2/10, n/30,…
A: Discount period is the time in which creditors are allowed to make payments along with some…
Q: SM Department Store sells gift certifications redeemable only when merchandise is purchased. These…
A: This is a multiple-choice question.
Q: Indicate the income statement and balance sheet reporting by Pronghorn at October 31, 2020, of the…
A: Sales returns and allowances means value of goods that are being returned by customer or allowance…
Q: Discuss whether Shelby Davey behaved in a professional manner by subtracting the discount even…
A: Discount period is the time in which creditors are allowed to make payments along with some…
Q: Required:Prepare a corrected sales ledger control account bringing down the amended balance as at 1…
A: A sales ledger control account is a ledger account prepared in order to calculate the amount owed by…
Q: On January 2, 2009Dennisson Inc. purchased a piece of machinery and signed a noninterest bearing…
A: Discount on Notes Payable is the difference between the price of the machine and the face amount of…
Q: The following facts relate to gift cards sold by Sunbru Coffee Company during 2018. Sunbru’s fiscal…
A: Deferred Revenue - Deferred Revenue is the money received in advance, but revenue is not yet…
Q: ABC Co sold merchandise to DEF Co for P120,000 and received P120,000 for that sale one month later.…
A: Revenue Recognition: The seller has transferred the property in the products to the buyer for a…
Q: On January 10th, Gates Gems received merchandise they purchased on account from Jewelry Wholesalers…
A: Purchases are debited at the time of purchase. When merchandise is returned an allowance entry is…
Q: Daniel Martin and John Duke contracted with J & S Distributors, Inc., to purchase a KIS Magnum…
A: Requirement a: In the current situation, JS failed to complete the order within the mentioned time…
Q: Byrd Company had the following transactions during 2016 and 2017: 1. On December 24, 2016, a…
A: The question is based on the concept of Financial Accounting.
Q: On December 1, 2020, Shamrock Inc. delivered 10 boxes of Otap bread and 10 packs of sample bread,…
A: COGS refer to the direct cost of producing the goods sold by the company. It includes cost of…
Q: Tracy Company, a manufacturer of air conditioners, sold 200 units to Thomas Company on November 17,…
A: Gross method is an Method where Sales are recorded in Full value including the discount amount which…
Q: ABC Department Store sells gift certificates that are redeemable only when the merchandise is…
A: Solution: Liability for outstanding gift certificates on Dec 31, 2019 = Gift certificates…
Q: ABC Co sold merchandise to DEF Co for P120,000 and received P120,000 for that sale one month later.…
A: Given, Amount received from sale of merchandise = P 120,000 Payment made to DEF = P 20,000 Fair…
Q: dger control account. In preparing the accounts for the year to 31 October 2019 the accountant…
A: April Shower Reconciliation Statement Amount Amount Balance in control account on 31 oct…
Q: Q.2.1 Prepare the following subsidiary journals for Nerina Traders for February 2020: Hint: Remember…
A: Excluding VAT means that VAT amount is not included in the amount. Including VAT means that VAT…
Q: Kingbird Inc. sold $16,200 of its designer tables to Santos Furniture and Design Studios on account.…
A: Sales are recorded using the gross method, so the whole amount of sales will be recorded. Under the…
Q: On April 18, 2019, Botanica Company, a garden retailer, purchased $9,800 of seed, terms 2/10, n/30,…
A: Credit terms are the terms of payment offered by the seller to the buyer. 2/10, n/30 refers to the…
Q: During 2016, Palazzo Company signed a non-cancelable contract with Crown Milling Company to purchase…
A: Non-cancelable contracts are ones that cannot be modified or refused, and the terms and conditions…
Q: On March 20, Y3; Aylmer Inc entered into a consignment agreement with Belmont Services Corporation…
A: Consignment accounting is the part of accounting where the accounting for the transactions between…
Q: On January 1, 2018, Wright Transport sold four school buses to the Elmira School District. In…
A: 1.
Q: The following information pertains to Sage Hill Solar Panels, Inc. Sold $144,000 of solar panels to…
A: Journal entries are used to record the transactions and are also helpful in preparing the financial…
Q: hat the discount will be amortized equally over the 3-month period and that there was no adjusting…
A: Long term debt obligation raised from financial service organization is known as notes payable. It…
Q: Larkspur Inc. sold $24,000 of its designer tables to Santos Furniture and Design Studios on account.…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: During 2016, Manfred company guaranteed a supplier’s 500,000 loan from a bank. On Oct. 1, 2017,…
A: Liabilities are the amount of obligations of the business that is to be paid and that arises from…
Q: On July 29, 20Y1, Ever Green Company, a garden retailer, purchased $12,000 of seed, terms 2/10,…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Serene Company purchases fountains for its inventory from Kirkland Inc. The following transactions…
A: When goods has been purchased on this term (2/10,net30) , it means that 2% discount will be given if…
Q: Nerina Traders, a gift shop, situated in Illovo is owned by Serena Lopez. The business is a…
A: Given information: VAT = 15% Goods are sold on 20% above cost
Q: On December 1, 2021 Cardinal Company, a garden retailer, purchased $20,000 of corn seed, terms 2/10,…
A: Solution In the given case ,C company has a chance to get 2 % discount if payment made with in 10…
Q: Truck #1 has a list price of $20,550 and is acquired for a cash payment of $19,043. 2. Truck #2…
A:
Q: Dowell Fishing Supply, Inc., sold $50,000 of Dowell Rods on December 15, 2018, to Bassadrome.…
A: Bill and hold sales recognize revenue: The customer used to purchase goods and request the seller…
Q: On December 2, 2014, Miles executed and delivered to Proctor a negotiable promissory note for…
A: Holder in due course is the person who accepts the negotiable instrument. The instrument is…
Q: Furtastic manufactures imitation fur garments. On June 1, 2018, Furtastic made a sale to Willett’s…
A: 1.
Q: In 2015, S began selling S Company gift cards. During 2015, S sold $4,600,000 of these gift cards.…
A: A journal entry is prepared by the company to record the non-economic & economic transactions of…
Q: Yellow Company reported accounts payable on December 31, 2017 at P900,000 before any necessary…
A: The FOB shipping point states that the buyer becomes the owner as soon as goods are reached to…
On April 18, 2016, Bontanica Company, a garden retailer, purchased $9,800 of seed, terms 2/10, n/30, from Whitetail Seed Co. Even though the discount period had expired, Shelby Davey subtracted the discount of $196 when he processed the documents for payment on May 1, 2016.
-
Discuss whether Shelby Davey behaved in a professional manner by subtracting the discount, even though the discount period had expired.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Air Compressors Inc. purchases compressor parts for its inventory from a supplier. The following transactions take place during the current year: A. On April 5, the company purchases 400 parts for $8.30 per part, on credit. Terms of the purchase are 4/ 10, n/30, invoice dated April 5. B. On May 5, Air Compressors does not pay the amount due and renegotiates with the supplier. The supplier agrees to $400 cash immediately as partial payment on note payable due, converting the debt owed into a short-term note, with a 7% annual interest rate, payable in three months from May 5. C. On August 5, Air Compressors pays its account in full. Record the journal entries to recognize the initial purchase, the conversion plus cash, and the payment.On December 1, 2021 Cardinal Company, a garden retailer, purchased $20,000 of corn seed, terms 2/10, n/30, from IowaFarm Co. Even though the discount period had expired, Rosa Lopez subtracted the discount of $400 when she processedthe documents for payment on December 15, 2021. Discuss whether Rosa Lopez behaved in a professional manner by subtracting the discount, even though the discount period had expired.On July 29, 20Y1, Ever Green Company, a garden retailer, purchased $12,000 of seed, terms 2/10, n/30, from Fleck Seed Co. Even though the discount period had expired, Mary Jasper subtracted the discount of $240 when she processed the documents for payment on August 13, 20Y1. Is Mary committing an illegal act? Is Mary behaving in a professional manner? Mary Jasper is not behaving in a Give reasons for your answers. What choices does Fleck Seed Co. have when it processes the receipt of $11,760 for payment of the invoice?
- On January 2, 2009Dennisson Inc. purchased a piece of machinery and signed a noninterest bearing note in its payment. The Note requires the Company to pay $100,000 on December 31,2011. Dennisson is not sure what interest rate appropriately reflects the time value of money. However, the price lists indicate the machine could have been purchased for a price of $79,383. Required: a. Show how Dennisson should record his transaction in its General Journal on January 2, 2009 recognizing the Discount on Notes Payable. b. What is the effective interest rate implicit in the transaction/ Show computation.In 2015, S began selling S Company gift cards. During 2015, S sold $4,600,000 of these gift cards. During 2015, customers redeemed $2,950,000 of S’s gift cards. There are no expiration dates on S’s gift cards. S estimates that 4% of its gift cards sold will never be redeemed. S operates in jurisdictions where they are not required to remit unredeemed gift card balances to government agencies under unclaimed property laws. S only prepares AJEs every 12-31. Prepare the 2015 entries S made: to reflect gift card sales. to reflect gift card redemptions. to record 12-31’s AJE for estimated gift card breakage income.On January 1, 2018, Wright Transport sold four school buses to the Elmira School District. In exchange for thebuses, Wright received a note requiring payment of $515,000 by Elmira on December 31, 2020. The effectiveinterest rate is 8%.Required:1. How much sales revenue would Wright recognize on January 1, 2018, for this transaction?2. Prepare journal entries to record the sale of merchandise on January 1, 2018 (omit any entry that might berequired for the cost of the goods sold), the December 31, 2018, interest accrual, the December 31, 2019,interest accrual, and receipt of payment of the note on December 31, 2020.
- 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 30 fountains for $1,700 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 10% 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. If an amount box does not require an entry, leave it blank. When required, round your answers to the nearest dollar. July 3 fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 Aug. 3 fill in the blank 8 fill in the blank 9 fill in the blank 11 fill in the blank 12 Oct. 3 fill in the blank 14…On January 2, 2017, Adani Inc. sells goods to Geo Company in exchange for a zero-interest-bearing note with face value of $11,000, with payment due in 12 months. The fair value of the goods at the date of sale is $10,000 (cost $6,000). Prepare the journal entry to record this transaction on January 2, 2017. How much total revenue should be recognized in 2017?On January 1, 2020, the balances of Jennifer Cakes and Pastries accounts receivable and allowance for doubtful accounts amounted to P50,000 and P15,000, respectively.During the year, the Company sold P500,000 worth of pastries and P800,000 worth of cakes on credit. The collections on these amounted to 80% for pastries and 60% for cakes.At year-end, the Company determined that the beginning balance of the accounts receivable was deemed uncollectible and hence, written off. Recoveries and collections of previously written off amounted to P10,000. The Company's policy is to recognize 5% of its credit sales as doubtful accounts. On December 31, 2020, what is the net realizable value of Jennifer Cakes and Pastries' accounts receivable?. Single choice. P355,000 P380,000 P365,000 P390,000
- Oswego Clay Pipe Company sold $45,800 of pipe to Southeast Water District 45 on April 12 of the current year with terms 2/15./60. Oswego uses the gross method of accounting for sales discounts. What entry would Oswego make on June 10, assuming the customer made the correct payment on that date?SM Department Store sells gift certifications redeemable only when merchandise is purchased. These gift certificates have an expiration date of two years after issuance date. The unearned revenue account relating to gift certificates has a beginning balance of P65,000 and the sale of gift certificates during the year 2017 was likewise credited to this account. The balance of the unearned revenue account as at year end totaled P300,000, before any adjustment for the recognition of the revenue. You verified that during the year, P15,000 worth of gift certificates expired and the total of gift certificates that were redeemed was P200,000. Compute for the correct balance of the Unearned Revenue for Gift Certificates Outstanding as of December 31, 2017. P200,000P200,000 P15,000P15,000 None of theseNone of these P300,000P300,000 P85,000On December 30, 2018, JENNIE Corporation sold merchandise for P75,000 to LISA Company. The terms of the sale were n/30, FOB shipping point. The merchandise was shipped on December 31,2018, and arrived at LISA on January 2,2009. Due to a Clerical error, the sale was not recorded until January 2019 and the merchandise, sold at a 25% mark up on cost, was included in JENNIE's inventory at December 31,2018. As a result, Ed’s cost of goods for the year ended December 31,2018 was –