5. On September 29, 2019, the Buyer bought $300,000 of inventory at 5% trade discount withthe shipping term of FOB - Destination, Freight Prepaid. The shipping cost is $45,000.The Seller gave a credit term of 2/15, n/45. The Buyer paid in full on October 13, 2019.Prepare the journal entries on the Buyer and Seller books for the following:a. Purchase and sales transactions.b. Freight transactions.c. Payment of the transactions. Treat the following Financial Transactions as independent scenarios:1. The Buyer and Seller agreed on the term FOB Shipping Point, Freight Collect for thefreight cost of $12,500 for the sales transactions of $325,000 on June 22, 2019. The Buyerpaid in full on July 2 for the credit term 1/10, n/15.2. The Seller sold merchandise on March 26, 2019 with the list price of $500,000 at tradediscount of 10%, 5%. The terms of shipment is FOB – Shipping Point, Freight Prepaidwith the freight amounting to S15,000. The Buyer's credit term is 3/EOM, n/60. The Buyerpaid all the accounts on March 31, 2019.3. On January 28, 2019 the Buyer purchased $450,000 worth of inventory at 10% tradediscount with a term of 2/10, n/30. The freight cost is P25,000 on FOB - Shipping Point,Freight Collect. The Seller collected in full what is due from the Buyer on February 08,2019.4. The term of shipment on the sale of goods on September 28, 2019 for $1,500,000 is FOBDestination, Freight Collect with freight cost of $225,000. The Seller gave a trade discountof 15%, 5% with a credit term of 3/10, 1/15, n/30. The Seller collected on October 10,2019.

When purchase and sales are done, the shipping charges are an important component of the costs. The…

Answered: 1. The Buyer and Seller agreed on the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Whispering industries purchased $8,100 of merchandise on february 1, 2025, subject to a trade discount of 10% and with credit terms of 3/15, n/60. it returned $2,100 ( gross price before trade or cash discount) on february 4. the invoice was paid on february 13
ABC has the following transactions during 2020:1. On March 1, 2020, ABC sold merchandise on account to Customer 1 for €7,750. ABCoffers a cash-discount of 2% if payment is made within 20 days of the sale. Otherwisethe full amount, net of returns and allowances, is due in 30 days.2. On March 10, 2020, Customer 1 returned merchandise worth €1,550 to ABC.1. 3.On March 15, 2020, Customer 1 paid for the merchandise.3. On April 1, 2020, ABC loaned €10,000 to XZ with a 1-year, 10% note.4. On November 1, 2020, received a €4,000, 6-month, 5% note in exchange for Customer’s2 outstanding accounts receivable.5. On December 16, 2020, sold merchandise to Customer 3, receiving a €4,500, 3-months,8% note.6. On December 31, 2020, the interest revenue accrued is recognized on all notesreceivable. a. Record the collection of note receivable as their mature in 2021.
Determine the amount to be paid in full settlement of each purchase invoice, assuming that credit for returns and allowances was received prior and that all invoices were paid within the discount period, a. b. Merchandise $3,400 $13,300 3103 Freight Paid by Seller $287 $72 Freight Terms FOB shipping point, 1/10, net 30 FOB destination, 2/10, net 45 Returns and Allowances $300 $2,900 payment
How much is the accounts payable credited if the company purchased merchandise on February 23, 2020, with a P310,000 list price, P10,000 shipping costs, terms of FOB Destination, freight collect, 2/10, 3/15, n/30, and paid in full on March 5, 2020? Your answer
Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for returns and allowances was received prior to payment and that al invoices were paid within the discount period. If required, round the answers to the nearest dollar. Credit for Refunds and Freight Paid by Seller Merchandise Freight Terms Allowances $6,300 $600 FOB shipping point, 2/10, n/30 $1,550 a. 2,900 600 FOB destination, 1/10, n/30 1,200 a.
They sold $50,000 worth of goods on credit, with terms 3/10, n/20, on 2/1/2021. Record this journal entry using both the net and gross methods. Record the journal entry if the customer pays off this account on 2/5/2021. Record the journal entry if the customer pays off this account on 3/1/2021.
On December 27, 20x1, YGS Co. received a sale order for a credit sale of goods with selling price of P300,000. The goods were shipped by YGS on December 31, 20x1 and were received by the buyer on January 2, 20x2. The related shipping costs amounted to P200. YGS Co. collected the receivable on January 5, 20x2. If the term of the sale is FOB destination, freight collect, how much net cash is collected on January 5, 20x27
On January 15, 2021, X Company bought merchandise from Y Company amounting to P30,000 (VAT exclusive). Terms 2/10, n/30, FOB shipping point, freight collect Amount of freight cost is P1,000 Assuming X Company issued a debit memorandurn for P5,600 (VAT inclusive), and paid the amount due within the discount period, the amount if Input tax on the cash discount will be
During February 1, 2018 Royal Company sold merchandise with a price of P100,000 towards Dew enterprise. Terms: 2/10, n/30. FOB shipping point. • Who is the owner of the goods in transit? • When is the due date if no discount?
Determine the amount to be paid in full settlement of each of the following invoices, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Merchandise Freight Paid by Seller Returns and Allowances a. $21,800 - FOB shipping point, 1/10, n/30 $1,100 b. 12,000 $500 FOB shipping point, 1/10, n/30 1,400 c. 6,500 - FOB destination, 1/10, n/30 600 d. 2,900 100 FOB shipping point, 1/10, n/30 400 e. 3,600 - FOB destination, 1/10, n/30 - a. $fill in the blank 1 b. $fill in the blank 2 c. $fill in the blank 3 d. $fill in the blank 4 e. $fill in the blank 5
Crossings Company regularly buys merchandise from Best Company and is allowed trade discounts of 20% and 10% from the list price exceeding P120,000. Crossings made a purchase on March 20, 2024, and received an invoice with a list price of P150,000, a freight charge of P2,500, and payment terms of net 30 days. REQUIRED: What is the total cost of merchandise purchases?
14) Ibri traders returned goods to Muscat mart, a supplier of RO 1,700, purchased on 8th May,2019. The payment is received with the discount of 3% from the supplier. How would you record this in the books of buyer under the Perpetual inventory system? a. Cash RO 1,649 Dr / Account payable RO 1,649 Cr b. Cash RO 1,649 Dr / Merchandise inventory RO 1,649 Cr c. Account payable RO 1,649 Dr / Merchandise inventory RO 1,649 Cr d. Cash RO 1,700 Dr / Account receivable RO 1,700 Cr

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