BuyFindarrow_forward

Accounting (Text Only)

26th Edition
Carl Warren + 2 others
ISBN: 9781285743615

Solutions

Chapter
Section
BuyFindarrow_forward

Accounting (Text Only)

26th Edition
Carl Warren + 2 others
ISBN: 9781285743615
Textbook Problem
43 views

Computerized accounting systems and e-commerce

Apple Inc.’s iTunes® provides digital products, such as music, video, and software, which can be downloaded to portable devices such as the iPhone® and iPad®. Purchases from iTunes are made with credit cards that are on file with the credit card processing company. Such transactions are considered cash transactions. Once the purchases are made, consumers can download the requested digital products to their portable devices for their enjoyment and the charges will show up on their credit card bills.

  1. a. What kind of e-commerce application is described by Apple iTunes?
  2. b. Assume you purchased 12 songs for $1.25 each on iTunes. Provide the journal entry generated by Apple’s e-commerce application.
  3. c. If a special journal were used, what type of special journal would be used to record this sales transaction?
  4. d. If an electronic form were used, what type of electronic form would be used to record this sales transaction?
  5. e. Would it be appropriate for Apple to use either special journals or electronic forms for sales transactions from iTunes? Explain.

(a)

To determine

Computerized Accounting Systems

Computerized Accounting System is used by all the forms of the companies for its three main advantages over manual systems. They are:

1. It simplifies the record keeping process by recording transactions in electronic journals or forms and simultaneously posting them to the respective ledgers.

2. This system is more accurate compared to the manual one.

3. It provides the management about the status of accounts (balances) that helps the management in proper decision making.

E-Commerce

 Use of internet in performing the business transactions is called e-commerce.

To identify: The kind of e-commerce application described by the Company A.

Explanation

The kind of e-commerce application described by the Company A is B2C, i.e. Business-to-Customer...

(b)

To determine

To provide: The journal entry for the transaction.

(c)

To determine

To explain:  The type of special journal to be used to record this sales transaction.

(d)

To determine

To explain:  The type of electronic form to be used to record this sales transaction.

(e)

To determine

To explain: Would it be appropriate for Company A to use special journals or electronic forms for this sales transaction.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

If a companys beta were to double, would its required return also double?

Fundamentals of Financial Management, Concise Edition (MindTap Course List)

What are the six principles of the AICPA Code of Professional Conduct?

Intermediate Accounting: Reporting And Analysis

What is the purpose of depreciation?

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

WACC AND COST OF COMMON EQUITY Kahn Inc. has a target capital structure of 60% common equity and 40% debt to fu...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

Some income from capital is taxed twice. Explain.

Principles of Macroeconomics (MindTap Course List)