COLLEGE ACCOUNTING ETEXT+CONNECT ACCESS
16th Edition
ISBN: 9781264624256
Author: Haddock
Publisher: MCG
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Question
Chapter 7, Problem 7E
To determine
Compute the amount that should be recorded as sales.
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Suppose a certain appliance store purchases the following items. Calculate the extended total after the trade discounts for each line, the invoice subtotal, and the invoice total. (Round your answers to the nearest cent.)
Assume the following information: merchandise is sold on account to customer for P120,000, FOB Shipping Point, 2/10, n/30. The seller paid transportation cost of P6,000. What is the amount of remittance due within the discount period?
What is the amount of the trade discount on merchandise that a vendor can receive with a list price of $7,900 and a trade discount rate of 30 1/2%
Chapter 7 Solutions
COLLEGE ACCOUNTING ETEXT+CONNECT ACCESS
Ch. 7 - What is the name of the account used to record...Ch. 7 - What is a sales return? What is a sales allowance?Ch. 7 - Prob. 1.3SRQCh. 7 - Prob. 1.4SRECh. 7 - Prob. 1.5SRECh. 7 - Prob. 1.6SRACh. 7 - Prob. 2.1SRQCh. 7 - Prob. 2.2SRQCh. 7 - Prob. 2.3SRQCh. 7 - Prob. 2.4SRQ
Ch. 7 - Prob. 2.5SRECh. 7 - Prob. 2.6SRECh. 7 - Prob. 2.7SRACh. 7 - Prob. 1CSRCh. 7 - Prob. 2CSRCh. 7 - Prob. 3CSRCh. 7 - Prob. 4CSRCh. 7 - Prob. 5CSRCh. 7 - Prob. 1DQCh. 7 - Prob. 2DQCh. 7 - Prob. 3DQCh. 7 - Prob. 4DQCh. 7 - Prob. 5DQCh. 7 - Prob. 6DQCh. 7 - Prob. 7DQCh. 7 - Prob. 8DQCh. 7 - Prob. 9DQCh. 7 - Prob. 10DQCh. 7 - Prob. 11DQCh. 7 - Prob. 12DQCh. 7 - Prob. 13DQCh. 7 - Prob. 14DQCh. 7 - Prob. 15DQCh. 7 - Prob. 1ECh. 7 - Prob. 2ECh. 7 - Prob. 3ECh. 7 - Record the following transactions of Fashion Park...Ch. 7 - Prob. 5ECh. 7 - Prob. 6ECh. 7 - Prob. 7ECh. 7 - Prob. 8ECh. 7 - Prob. 9ECh. 7 - Prob. 10ECh. 7 - Prob. 1PACh. 7 - Prob. 2PACh. 7 - Prob. 3PACh. 7 - Prob. 4PACh. 7 - Prob. 5PACh. 7 - Prob. 6PACh. 7 - Prob. 1PBCh. 7 - Prob. 2PBCh. 7 - INSTRUCTIONS 1. Open the general ledger accounts...Ch. 7 - The Urban Florist is a wholesale shop that sells...Ch. 7 - Prob. 5PBCh. 7 - Prob. 6PBCh. 7 - Prob. 1CTPCh. 7 - Tony Zendejas is the owner of Housewares Galore, a...Ch. 7 - Prob. 1MFCh. 7 - Prob. 2MFCh. 7 - Prob. 3MFCh. 7 - Prob. 4MFCh. 7 - Prob. 5MFCh. 7 - Prob. 6MFCh. 7 - Prob. 7MFCh. 7 - Why should management insist that all sales on...Ch. 7 - Prob. 1ED
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Similar questions
- Main Street Distributors, a wholesale firm, made sales using the following list prices and trade discounts. Required:What amount should be recorded for each sale? List price of $4,200 and trade discounts of 30 percent and 20 percent. List price of $4,900 and trade discounts of 30 percent and 20 percent. List price of $3,250 and trade discounts of 20 percent and 10 percent.arrow_forwardA sala set priced at P 2,250 was offered to a retailer with a discount of P 350.00. What was the rate of trade discount?arrow_forwardA business supply store bought some merchandise with a list price of $13,400. The wholesaler extended a trade discount that made the net price $8,710. Find the trade discount rate (as a %). ______.arrow_forward
- If a customer purchased merchandise in the amount of $340, terms 3/10, n/30, returned $70 of the inventory for a full refund, and received an allowance for $65, how much discount would be applied if the customer remitted payment within the discount window?arrow_forwardSchofield Co. sold merchandise on account to Bernard Retail Inc. for $15,000, terms 2/10, n/30. The cost of the merchandise sold was $8,000. Assuming Schofield Co. uses the gross method of recording sales discounts. A. Journalize the entries to record the sale on December 31. B. Journalize the entries to record the receipt of payment assuming it is made within the discount period on December 31.* C. Journalize the entries to record the receipt of payment assuming it is made beyond the discount period on December 31.* *Refer to the Chart of Accounts for exact wording of account titles.arrow_forwardOlympia Company sold merchandise on credit with a list price of $60,000. Terms were 2/10, n/30. Given the indicated sales discounts methods in the responses, which entry is correct? a. Gross Price Method Accounts Receivable 54,000 Sales 54,000 b. Net Price Method Accounts Receivable 30,000 Sales 30,000 c. Net Priced Method Accounts Receivable 58,800 Sales 58,800 d. Gross Price Method Accounts Receivable 58,800 Sales 58,800arrow_forward
- Schofield Co. sold merchandise on account to Bernard Retail Inc. for $15,000, terms 2/10, n/30. The cost of the merchandise sold was $8,000. Assuming Schofield Co. uses the gross method of recording sales discounts. A. Journalize the entries to record the sale on December 31. B. Journalize the entries to record the receipt of payment assuming it is made within the discount period on December 31.* C. Journalize the entries to record the receipt of payment assuming it is made beyond the discount period on December 31.* *Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTSSchofield CompanyGeneral Ledger ASSETS 110 Cash 120 Accounts Receivable-Bernard Retail Inc. 125 Notes Receivable 130 Inventory 131 Estimated Returns Inventory 140 Office Supplies 141 Store Supplies 142 Prepaid Insurance 180 Land 192 Store Equipment 193 Accumulated Depreciation-Store Equipment 194 Office Equipment 195 Accumulated…arrow_forwardJournalize the following merchandise transactions: A. Sold merchandise on account, $21,300 with terms 2/10, net 30. The cost of the merchandise sold was $17,000. B. Received payment less the discount. C. merchandise on account from a supplier for $6,500, terms 2/10, net 30. D. Returned $1,500 of the merchandise and received full credit. E. Paid for the merchandise within the discount periodarrow_forwardSuppose a certain appliance store purchases the following items. Calculate the extended total after the trade discounts for each line, the invoice subtotal, and the invoice total. (Round your answers to the nearest cent.) Quantity Unit Merchandise Unit List TradeDiscounts ExtendedTotal 150 ea. Blenders $49.95 20/15/15 $ 300 ea. Toasters $37.88 20/10/10 $ 18 doz. Coffee Mills $244.30 30/9/7 $ 12 doz. Juicers $440.00 25/10/5 $ Invoice subtotal $ Extra 5 1 2 % volume discount on total order − $ Invoice total $arrow_forward
- Merchandise with a list price of $3,900 and costing $2,000 is sold to a customer (MJ Co.) on account, subject to the following terms: 2/10, n/30. The seller (Stone Co.) prepays the transportation costs of $50, shipping terms are FOB Destination. The correct payment amount is received from the buyer within the discount period. Record the foregoing transactions of the SELLER (Stone Co.) in the sequence indicated below (omit the 4th journalizing step of providing an explanation): (a) Sold the merchandise, recognizing the sale and cost of merchandise sold. (b) Paid the $50 transportation charges. (c) Received payment from the customer. Record the foregoing transactions of the BUYER (MJ Co.) in the sequence indicated below (omit the 4th journalizing step of providing an explanation): (d) Bought the merchandise. (e) Sent payment to the vendor. JOURNAL Date Post.…arrow_forwardIf merchandise sells for $3,500, with terms 3/15.n/45 , and the cost of the inventory sold is $2,100, the amount charged to sales under the net method of recording sales discounts is?arrow_forwardSanta Fe Retailing purchased merchandise from Mesa Wholesalers with credit terms of 3/10, n/60 and an invoice price of $24,000. The merchandise had cost Mesa $16,000. Assume that both buyer and seller use a perpetual inventory system and the gross method. 1. Prepare entries that the buyer records for the (a) purchase, (b) cash payment within the discount period, and (c) cash payment after the discount period. 2. Prepare entries that the seller records for the (a) sale, (b) cash collection within the discount period, and (c) cash collection after the discount period. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare entries that the seller records for the (a) sale, (b) cash collection within the discount period, and (c) cash collection after the discount period. View transaction list Journal entry worksheetarrow_forward
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