Principles of Accounting
12th Edition
ISBN: 9781133626985
Author: Belverd E. Needles, Marian Powers, Susan V. Crosson
Publisher: Cengage Learning
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Chapter 6, Problem 5EA
To determine
Calculate the net cost of the microwave to the dealer.
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A household appliance dealer buys refrigerators from a manufacturer and resells them to its customers.
a.The manufacturer sets a list or catalogue price of $2,500 for a refrigerator. The manufacturer offers its dealers a 30 percent trade discount.
b.The manufacturer sells the machine under terms of FOB destination. The cost of shipping is $240.
c.The manufacturer offers a sales discount of 2/10, n/30. Sales discounts do not apply to shipping costs.
What is the net cost of the refrigerator to the dealer, assuming it is paid for within 10 days of purchase?
Luke sells machines, and also offers installation and technical support services. The individual selling prices of each product are shown below.
Sale price of goods $75
Installation $25
A year’s service $50
Company X bought a machine on 1 May 2018 and was charged a reduced price of $100.
Luke only offers discounts when customers purchase a package of products together.
According to IFRS 15 Revenue from Contracts with Customers, how much should be recorded in revenue for the year ended 31 December 2019? Answer should be rounded to the nearest $.
A buyer received an invoice for P 6,000 dated June 10. If terms are 2/10, n/30, and the buyer paid the invoice within the discount period, what amount will the seller receive? P 6,000
P 5,880
P 4,800
P 120
The purchases discount account is a contra account to
Account payable
Purchases
Sales
Sales discount
When a seller of merchandise allowed a customer a reduction from the original price for defective goods, the seller will issue to the customer a
Credit memorandum
Debit memorandum
Official receipt
Sales invoice
When the seller advances the transportation cost and the terms of sales are FOB shipping point, the seller records the payment of the transportation cost by
accounts
accounts
transportation
The account that appears in the chart of accounts for a merchandising entity but not for a service entity is
Accounts receivable
Accumulated depreciation
Advertising expense
Sales return and allowances
Olive Valenzuela Traders purchased merchandise from…
Chapter 6 Solutions
Principles of Accounting
Ch. 6 - Prob. 1DQCh. 6 - Prob. 2DQCh. 6 - Prob. 3DQCh. 6 - Assume a large shipment of uninsured merchandise...Ch. 6 - Prob. 5DQCh. 6 - Prob. 6DQCh. 6 - Prob. 7DQCh. 6 - Indicate whether each of the statements that...Ch. 6 - Prob. 2SECh. 6 - Prob. 3SE
Ch. 6 - Prob. 4SECh. 6 - Prob. 5SECh. 6 - Prob. 6SECh. 6 - Prob. 7SECh. 6 - Prob. 8SECh. 6 - Record the following transactions using T...Ch. 6 - Prob. 10SECh. 6 - Prob. 11SECh. 6 - Sutton Hills Companys management made the...Ch. 6 - Prob. 2EACh. 6 - A company has the following data: net sales,...Ch. 6 - Prob. 4EACh. 6 - Prob. 5EACh. 6 - Linear Company engaged in the following...Ch. 6 - Prob. 7EACh. 6 - Prob. 8EACh. 6 - Prob. 9EACh. 6 - Prob. 10EACh. 6 - Prob. 11EACh. 6 - Prob. 12EACh. 6 - Prob. 13EACh. 6 - Prob. 14EACh. 6 - Prob. 15EACh. 6 - Matuska Tools Corporations income statements...Ch. 6 - Selected accounts from Murrays Furniture Stores...Ch. 6 - Prob. 3PCh. 6 - Selected accounts from Dences Gourmet Shops...Ch. 6 - Prob. 5PCh. 6 - Teague Company engaged in the following...Ch. 6 - Prob. 7APCh. 6 - Prob. 8APCh. 6 - Prob. 9APCh. 6 - Prob. 10APCh. 6 - Prob. 11APCh. 6 - Prob. 12APCh. 6 - Prob. 1CCh. 6 - Prob. 2CCh. 6 - Prob. 3CCh. 6 - Prob. 4CCh. 6 - Prob. 5CCh. 6 - Prob. 6C
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