Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN: 9781285595047
Author: Weil
Publisher: Cengage
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This is about accounting in merchandising business accounting. Thanks!
1. On March 1, how much is the amount to be debited to Purchases?
2. How much is the “freight-in” to be recorded in Purrchezza’s books?
3. How much is the “delivery expense” to be recorded in Sellenaur’s books?
4. How much cash should be paid to Sellenaur on March 12?
5. If Purrchezza paid on March 26 instead, how much cash did they pay Sellenaur?
According to the revenue recognition principle, revenues should be recognized when they areearned, which happens when the company performs acts promised to the customer. For most businesses, this condition is met at the point of delivery of goods or services. The following transactions occurred in September:a. A customer paid $10 cash for 10 song files from Apple ’s iTunes store. Answer from Apple’sstandpoint.b. Home Depot provided a carpet installation for $2,000 cash. A comparable installation fromother companies costs $3,000.c. AT&T is scheduled to install digital cable at 1,000 Austin area homes next week. The installation charge is $100 per home. The terms require payment within 30 days of installation.Answer from AT&T’s standpoint.d. AT&T completed the installations described in ( c ). Answer from AT&T’s standpoint.e. AT&T received payment from customers for the installations described in ( c ). Answer fromAT&T’s standpoint.f. A customer purchased a ticket…
This is about accounting in merchandising business accounting. Thanks!
1. On March 3, how much is the amount to be credited to Sales?
2. On March 5, how much should be debited to Sales Returns and Allowances?
3. How much is the “delivery expense” to be recorded in Tagaventah’s books?
4. How much cash was received by Tagaventah on April 15?
5. How much is the “freight-in” to be recorded in Tagavilly’s books?
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- Can I please get help with this question? (4) Wiset Company completes these transactions during April of the current year (the terms of all its credit sales are 2/10, n/30). April 2 Purchased $14,700 of merchandise on credit from Noth Company, terms 2/10, n/60. April 3 (a) Sold merchandise on credit to Page Alistair, Invoice Number 760, for $7,000 (cost is $6,000). April 3 (b) Purchased $1,470 of office supplies on credit from Custer, Incorporated, terms n/30. April 4 Issued Check Number 587 to World View for advertising expense of $859. April 5 Sold merchandise on credit to Paula Kohr, Invoice Number 761, for $17,000 (cost is $15,500). April 6 Returned $70 of office supplies purchased on April 3 to Custer, Incorporated. Wiset reduces accounts payable by that amount. April 9 Purchased $12,025 of store equipment on credit from Hal’s Supply, terms n/30. April 11 Sold merchandise on credit to Nic Nelson, Invoice Number 762, for $21,500 (cost is $18,000). April 12…arrow_forwardDirection : Read and analyze the given situation below and write the answers for each question on your answer sheet. Don’t forget your solution. • The Excelsior Merchandising purchased merchandise costing P250,000.00 for the month of October. It paid P10,000 for freight (transportation) for the shipment of the goods from the seller to its store. It insured the merchandise for P25,000. It sold the merchandise for P420,000. For the current month, it incurred the following expenses: Delivery Expense P15,000 Salary Expense P30,000 Miscellaneous Expense P25,000 Utilities Expense P10,000 The firm earned interest on the promissory notes of its customer amounting to P12,000. It paid interest to the bank on a loan it took amounting to P8,000 1. Compute for the following: a. Cost of sales b. Gross profit c. Operating Expenses d. Operating Profit/Loss e. Other Income f. Other Expense g. Net Profit/Lossarrow_forwardA beverage wholesale outlet sells beverages by the case. On April 13, a customer purchased 18 cases of wine at $42 per case, 20 cases of soda at $29 per case, and 45 cases of water at $17 per case. The customer pays with a Merill credit card. Merill charges a usage fee to the company of 5% of the total sale. What is the sales entry for this purchase?arrow_forward
- An unhappy customer just returned $50 of the items he purchased yesterday when he charged the goods to the companys store credit card. Which special journal would the company use to record this transaction? A. sales journal B. purchases journal C. cash receipts journal D. cash disbursements journal E. general journalarrow_forwardCodification Situation You are conducting an accounting research project for your boss. Your boss has asked you to determine the appropriate U.S. GAAP that specifies how your company should recognize revenues from the sales of products in a retail store. Your boss is confused because most customers pay cash, but some customers purchase on credit terms, and pay in cash 30 days later. Your manager also wants you to determine the GAAP guidance for how revenue should be recognized in income. Your manager has a lot of knowledge and experience in accounting and has heard about, but has never used, the FASB Accounting Standards Codification system. Directions Use the FASB Accounting Standards Codification system to conduct the research your manager has assigned to you. Use the Codification to determine how to recognize revenue from retail sales, including the right to return. Be prepared to show your manager the specific FASB ASC references that provide the appropriate guidance. Also prepare a brief memo explaining to your manager the different levels of the Codification and how to use the Codification system.arrow_forwardPresented here are selected transactions of Palmer Company. Palmer sells in large quantities to other companies and also sells its product in a small retail outlet. March 1 Sold merchandise on account to Grey Company for $6,000, terms 2/10, n/30. 3 Grey Company returned merchandise worth $600 to Palmer. 9 Palmer collected the amount due from Grey Company from the March 1 sale. 15 Palmer sold merchandise for $10,000 in its retail outlet. The customers used their Palmer credit cards. 31 Palmer added 1% monthly interest to the customers' credit card balance. April 10 Palmer collected $3,050 from credit card customers. Instructions Prepare journal entries for the selected transactions.arrow_forward
- GINKGO-NUTS Enterprises' purchases per purchase invoice is ₱150,000. The purchase discount is 2/10, n/30. Freight is ₱500, FOB Shipping point prepaid. At what amount is the accounts payable debited upon payment? SHOW YOUR SOLUTION IN GOOD ACCOUNTING FORMarrow_forwardanswer should be complete and correct with all working A convenient store sells 500 units for $5 each. Sales are made for cash, rather than on credit terms. The store’s customary business practice is to allow a customer to return any unused product within 30 days and receive a full refund. The cost of each product is $4. To determine the transaction price, the store decides that the approach that is most predictive of the amount of consideration to which the store will be entitled is the most likely amount. Using the most likely amount, the store estimates that five (25) units will be returned. The store’s experience is predictive of the amount of consideration to which the store will be entitled. The store estimates that the costs of recovering the products will be immaterial and expects that the returned products can be resold at a profit. REQUIRED: Provide the accounting entries to record the sale, and the subsequent return of the assets, assuming that the returns occur in…arrow_forwardCAN SOMEONE HELP ME MAKE A DEBIT AND CREDIT TABLE? Presented below are selected transactions of Swifty Company. Swifty sells in large quantities to other companies and also sells its product in a small retail outlet. March 1 Sold merchandise on account to Dodson Company for $11,000, terms 4/10, n/30. 3 Dodson Company returned merchandise worth $400 to Swifty. 9 Swifty collected the amount due from Dodson Company from the March 1 sale. 15 Swifty sold merchandise for $1,000 in its retail outlet. The customer used his Swifty credit card. 31 Swifty added 1.40% monthly interest to the customer’s credit card balance.arrow_forward
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