16A company is using the net method for a sale of $1,000 with payment terms of 2/10, net 30.How should the company record this in accounts receivable?Debited for $1,000Credited for $980Credited for $1,000Debited for $980

The payment terms of "2/10, net 30" mean the customer gets a 2% discount if they pay within 10 days.…

Answered: 16 A company is using the net method…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 17Q: A seller sells $800 worth of goods on credit to a customer, with a cost to the seller of $300....

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A seller sells $800 worth of goods on credit to a customer, with a cost to the seller of $300. Shipping charges are $100. The terms of the sale are 2/10, n/30, FOB Destination. What, if any, journal entry or entries will the seller record for these transactions?
Prepare journal entries for the following sales and cash receipts transactions. (a) Merchandise is sold on account for 300 plus 3% sales tax, with 2/10, n/30 cash discount terms. (b) Part of the merchandise sold in transaction (a) for 70 plus sales tax is returned for credit. (c) The balance on account for the merchandise sold in transaction (a) is paid in cash within the discount period.
The debits and credits for four related entries for a sale of 15,000, terms 1/10, n/30, are presented in the following T accounts. Describe each transaction.
Hall Inc. made a $30,000 sale on account with the following terms: 2/10, n/30. If the company uses the net method to record sales made on credit, what is/are the debit(s) in the journal entry to record the sale?
Coronado Industries made a $26000 sale on account with the following terms: 3/10, n/30. If the company uses the net method to record sales made on credit, what is/are the debit(s) in the journal entry to record the sale?
Bramble Corp. made a $26200 sale on account with the following terms: 3/10, n/30. If the company uses the gross method to record sales made on credit, what is/are the debit(s) in the journal entry to record the sale? O Debit Accounts Receivable for $26200. O Debit Accounts Receivable for $25414 and Sales Discounts for $786. O Debit Accounts Receivable for $25414. O Debit Accounts Receivable for $26200 and Sales Discounts for $786. Save for Later Attempts: 0 of 1 used Submit Answer
Pierce Company sold to Stanton Company merchandise on account FOB shipping point, 2/10, net 30, for $20,000. Pierce prepaid the $500 shipping charge. Which of the following entries does Pierce make to record this sale? O Accounts Receivable-Stanton, debit $20,000; Sales, credit $20,000 O Accounts Receivable-Stanton, debit $19,600; Sales, credit $19,600, and Accounts Receivable-Stanton, debit $500; Cash, credit $500 O Accounts Receivable-Stanton, debit $20,100; Sales, credit $20,100 O Accounts Receivable-Stanton, debit $20,000; Sales, credit $20,000, and Delivery Expense, debit $500; Cash, credit $500
Pierce Company sold to Stanton Company merchandise on account FOB shipping point, 1/10, net 30, for $300. Pierce prepaid the $55 shipping charge. Which of the following entries does Pierce make to record this sale? a.Accounts Receivable-Stanton, debit $55; Sales, credit $55 b.Accounts Receivable-Stanton, debit $297; Sales, credit $297, and Accounts Receivable-Stanton, debit $55; Cash, credit $55 c.Accounts Receivable-Stanton, debit $355; Sales, credit $355 d.Accounts Receivable-Stanton, debit $55; Sales, credit $55, and Transportation Out, debit $300; Cash, credit $300
Hoffman Company purchased merchandise on account from a supplier for $65,000, terms 1/10, n/30. Hoffman Company returned $7,500 of the merchandise and received full credit.a. If Hoffman Company pays the invoice within the discount period, what is the amount of cash required for the payment?b. What account is debited by Hoffman Company to record the return?
Piedmont Company purchased merchandise on account from a supplier for $30000, terms 1/10, n/30. Piedmont Company returned $8000 of the merchandise and received full credit.lf Piedmont Company pays the invoice within the discount period, what is the amount of cash required for the payment? Add your answer
Barans Company purchased merchandise on account from a supplier for $9,200, terms 1/10, n/30. Barans returned $1,500 of the merchandise and received full credit. A. If Barans Company pays the invoice within the discount period, what is the amount of cash required for the payment? If required, round the answer to the nearest dollar. $________________ B. What account is debited by Barans Company to record the return? Options are: 1. Accounts Payable 2. Accounts Receivable 3. Cash 4. Merchandise Inventory 5. Purchases 6. Sales 7. Sales Returns and Allowances
The entry to record the receipt of payment within the discount period on a sale of $2400 with terms of 2/10, n/30 will include a credit to Cash for $2352. Sales Revenue for $2400. Sales Discounts for $48. ○ Accounts Receivable for $2400.

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16 A company is using the net method for a sale of $1,000 with payment terms of 2/10, net 30. How should the company record this in accounts receivable? Debited for $1,000 Credited for $980 Credited for $1,000 Debited for $980