Principles of Accounting Volume 1
19th Edition
ISBN: 9781947172685
Author: OpenStax
Publisher: OpenStax College
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Chapter 6, Problem 19EA
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Record the journal entry for each of the following transactions. Glow Industries purchases 750 strobe lights at $23 per light from a manufacturer on April 20. The terms of purchase are 10/15, n/40, invoice dated April 20. On April 22, Glow discovers 100 of the lights are the wrong model and is granted an allowance of $8 per light for the error. On April 30, Glow pays for the lights, less the allowance.
The following is selected information from Mars Corp. Compute net purchases, and cost of goods sold for the month of March.
Record the journal entry or entries for each of the following sales transactions. Glow Industries sells 240 strobe lights at $40 per light to a customer on May 9. The cost to Glow is $23 per light. The terms of the sale are 5/15, n/40, invoice dated May 9. On May 13, the customer discovers 50 of the lights are the wrong color and are granted an allowance of $10 per light for the error. On May 21, the customer pays for the lights, less the allowance.
Shatner Importers, Inc. sells coffee pots for $120 each. On November 12, the company sold to a customer on account with terms of /15, n/30. The customer paid for 20 of the coffee pots on November 27 and paid for the remaining on 11th.
Provide the necessary journal entries for Shatner to record these transactions under both the most-likely-amount and expected-value methods. For the most-likely-amount method, assume both that the customer will take the discount and won't take the discount. For the expected-value approach, assume that the customer is70% likely to take the discount and ignore any constraints on variable consideration. (Ignore the journal entry that would typically be necessary to record the reduction of inventory and cost of goods sold.) Round to two decimal places.b. Provide a comparison of the impact on the income statement for each method.
begin by recording the transactions under the most-likely-amount method, assuming that the customer will take the…
Chapter 6 Solutions
Principles of Accounting Volume 1
Ch. 6 - Which of the following is an example of a contra...Ch. 6 - What accounts are used to recognize a retailers...Ch. 6 - Which of the following numbers represents the...Ch. 6 - If a customer purchases merchandise on credit and...Ch. 6 - Which of the following is a disadvantage of the...Ch. 6 - Which of the following is an advantage of the...Ch. 6 - Which of the following is not a reason for the...Ch. 6 - Which of the following is not included when...Ch. 6 - Which of the following accounts are used when...Ch. 6 - A retailer pays on credit for $650 worth of...
Ch. 6 - A retailer returns $400 worth of inventory to a...Ch. 6 - A retailer obtains a purchase allowance from the...Ch. 6 - Which of the following accounts are used when...Ch. 6 - A customer pays on credit for $1,250 worth of...Ch. 6 - A customer returns $870 worth of merchandise and...Ch. 6 - A customer obtains a purchase allowance from the...Ch. 6 - Which of the following is not a characteristic of...Ch. 6 - Which two accounts are used to recognize shipping...Ch. 6 - Which of the following is not a characteristic of...Ch. 6 - A multi-step income statement ________. A....Ch. 6 - Which of the following accounts would be reported...Ch. 6 - A simple income statement ________. A. combines...Ch. 6 - Which of the following accounts would not be...Ch. 6 - Which of the following accounts are used when...Ch. 6 - A retailer obtains a purchase allowance from the...Ch. 6 - A customer returns $690 worth of merchandise and...Ch. 6 - A customer obtains an allowance from the retailer...Ch. 6 - What are some benefits to a retailer for offering...Ch. 6 - What do credit terms of 4/10, n/30 mean in regard...Ch. 6 - What is the difference between a sales return and...Ch. 6 - If a retailer made a purchase in the amount of...Ch. 6 - What are two advantages and disadvantages of the...Ch. 6 - What are two advantages and disadvantages of the...Ch. 6 - Sunrise Flowers sells flowers to a customer on...Ch. 6 - Sunrise Flowers sells flowers to a customer on...Ch. 6 - Name two situations where cash would be remitted...Ch. 6 - If a retailer purchased inventory in the amount of...Ch. 6 - A retailer discovers that 50% of the total...Ch. 6 - Name two situations where cash would be remitted...Ch. 6 - If a customer purchased merchandise in the amount...Ch. 6 - A customer discovers 60% of the total merchandise...Ch. 6 - What are the main differences between FOB...Ch. 6 - A buyer purchases $250 worth of goods on credit...Ch. 6 - A seller sells $800 worth of goods on credit to a...Ch. 6 - Which statement and where on the statement is...Ch. 6 - The following is select account information for...Ch. 6 - What is the difference between a multi-step and...Ch. 6 - How can an investor or lender use the Gross Profit...Ch. 6 - The following is select account information for...Ch. 6 - If a retailer purchased inventory in the amount of...Ch. 6 - A customer discovers 50% of the total merchandise...Ch. 6 - What is the difference in reporting requirements...Ch. 6 - On March 1, Bates Board Shop sells 300 surfboards...Ch. 6 - Marx Corp. purchases 135 fax machines on credit...Ch. 6 - Match each of the following terms with the best...Ch. 6 - The following is selected information from Mars...Ch. 6 - On April 5, a customer returns 20 bicycles with a...Ch. 6 - Record journal entries for the following purchase...Ch. 6 - Record journal entries for the following purchase...Ch. 6 - Record the journal entry for each of the following...Ch. 6 - Record journal entries for the following sales...Ch. 6 - Record the journal entries for the following sales...Ch. 6 - Record the journal entry or entries for each of...Ch. 6 - Review the following situations and record any...Ch. 6 - Review the following situations and record any...Ch. 6 - Review the following situations and record any...Ch. 6 - The following select account data is taken from...Ch. 6 - Record journal entries for the following purchase...Ch. 6 - Record journal entries for the following purchase...Ch. 6 - Record the journal entries for the following sales...Ch. 6 - Record the journal entry or entries for each of...Ch. 6 - On June 1, Lupita Candy Supplies sells 1,250 candy...Ch. 6 - Ariel Enterprises purchases 32 cellular telephones...Ch. 6 - For each of the following statements, fill in the...Ch. 6 - The following is selected information from Orange...Ch. 6 - On April 20, Barrio Bikes purchased 30 bicycles at...Ch. 6 - Blue Barns purchased 888 gallons of paint at $19...Ch. 6 - Canary Lawnmowers purchased 300 lawnmower parts at...Ch. 6 - Record journal entries for the following purchase...Ch. 6 - Blue Barns sold 136 gallons of paint at $31 per...Ch. 6 - Canary Lawnmowers sold 70 lawnmower parts at $5.00...Ch. 6 - Record journal entries for the following sales...Ch. 6 - Review the following situations and record any...Ch. 6 - Review the following situations and record any...Ch. 6 - Review the following situations and record any...Ch. 6 - The following select account data is taken from...Ch. 6 - Canary Lawnmowers purchased 300 lawnmower parts at...Ch. 6 - Record journal entries for the following purchase...Ch. 6 - Canary Lawnmowers sold 75 lawnmower parts at $5.00...Ch. 6 - Record journal entries for the following sales...Ch. 6 - Record journal entries for the following...Ch. 6 - Record journal entries for the following...Ch. 6 - Costume Warehouse sells costumes and accessories....Ch. 6 - Pharmaceutical Supplies sells medical supplies to...Ch. 6 - Review the following transactions for Birdy...Ch. 6 - Review the following transactions for Dish Mart...Ch. 6 - Review the following sales transactions for Birdy...Ch. 6 - Review the following sales transactions for Dish...Ch. 6 - Record the following purchase transactions of...Ch. 6 - The following is the adjusted trial balance data...Ch. 6 - The following is the adjusted trial balance data...Ch. 6 - Review the following transactions for Birdy...Ch. 6 - Review the following sales transactions for Dish...Ch. 6 - Record journal entries for the following...Ch. 6 - Record journal entries for the following...Ch. 6 - Costume Warehouse sells costumes and accessories...Ch. 6 - Pharmaceutical Supplies sells medical supplies and...Ch. 6 - Review the following transactions for April...Ch. 6 - Review the following transactions for Dish Mart...Ch. 6 - Review the following sales transactions for April...Ch. 6 - Review the following sales transactions for Dish...Ch. 6 - Record the following purchase transactions of...Ch. 6 - Record the following sales transactions of Money...Ch. 6 - Record the following sales transactions of Custom...Ch. 6 - The following is the adjusted trial balance data...Ch. 6 - Following is the adjusted trial balance data for...Ch. 6 - Review the following transactions for April...Ch. 6 - Review the following sales transactions for Dish...Ch. 6 - Conduct research on a real-world retailers trade...Ch. 6 - You have decided to open up a small convenience...Ch. 6 - You own your own outdoor recreation supply store....Ch. 6 - You own a clothing store and use a periodic...
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- Record the journal entry for each of the following transactions. Glow Industries purchases 750 strobe lights at $23 per light from a manufacturer on April 20. The terms of purchase are 10/15, n/40, invoice dated April 20. On April 22, Glow discovers 100 of the lights are the wrong model and is granted an allowance of $8 per light for the error. On April 30, Glow pays for the lights, less the allowance.arrow_forwardBlue Barns sold 136 gallons of paint at $31 per gallon on July 6 to a customer with a cost of $19 per gallon to Blue Barns. Terms of the sale are 2/15, n/45, invoice dated July 6. The customer pays their account in full on July 24. On July 28, the customer discovers 17 gallons are the wrong color and returns the paint for a full cash refund. Blue Barns returns the gallons to their inventory at the original cost per gallon. Record the journal entries to recognize these transactions for Blue Barns.arrow_forwardCanary Lawnmowers sold 75 lawnmower parts at $5.00 per part to a customer on December 4. The cost to Canary is $3.00 per part. Terms of the sale are 4/10, n/25, invoice dated December 4. The customer pays their account in full on December 16. On December 21, the customer discovers 22 of the parts are the wrong size, but decides to keep them after Canary gives them an allowance of $1.00 per part. Record the journal entries to recognize these transactions for Canary Lawnmowers.arrow_forward
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