a)On 31 March 2021, an agreement was entered to buy goods at a future date. When the revenue should berecognized?b)the company account for the revenue on account of the customer for the year ending 31st March?Thepower distribution company took the last reading of the customer during the year on 20th March. How will

Revenue recognition concept states that the specific conditions in which the revenue is recognized…

Answered: 31st March 2021, an agreement was…

Business

Accounting

31st March 2021, an agreement was entered to buy goods at a fu ed?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: An invoice of $3168 from Scottish Importers has cash terms of 4/20 EOM and is dated June 5. Find (a)…

A: formula: Cash discount Amount = Invoice amount x Discount rate

Q: Merchandise subject to terms 3/10, n/25, FOB shipping point, is sold on account to a customer for…

A: When customers pay within the stated discount periods, sales discounts (if offered by sellers)…

Q: Determine the amount to be paid in full settlement of each purchase invoice, assuming that credit…

A: In the case of FOB Shipping point Amount to be paid = ( Purchases - Return ) * ( 1 - Discount rate )…

Q: invoice dated July 27 with terms of 3/10 EOM. Determine (a) the last day of the discount period, and…

A: Generally the discount is given by the supplier in order to receive the immediate payment and create…

Q: The Bockner Company shipped merchandise to Laetner Corporation on December 28, 2021. Laetner…

A: Transportation Costs: The costs of delivering the merchandise inventory from the manufacturer to the…

Q: Recording Revenue and Receivables Under a Consignment Arrangement On March 15, 2020, Drexel Corp.…

Q: 19-Oman Cement company receives invoice from Sohar Cement Company. What type of source document will…

A: The correct option is D. Purchase invoice.

Q: Determine the amount to be paid in full settlement of the invoice assuming that credit for returns…

A: FOB destination sale: In FOB destination sale freight costs are paid by the seller and ownership is…

Q: How will the reservation, purchase agreement, and the delivery of a Model 3 impact Tesla's financial…

Q: Flounder Company sells tablet PCs combined with Internet service, which permits the tablet to…

A: SOLUTION- SERVICE CONTRACT (PRODUCT BUNDLE A)- 469 PARTICULARS TABLET INTERNET SERVICE…

Q: Albany International Corporation, originally the Albany Felt Company, is an industrial-goods company…

A: Notes receivable is a financial instrument which represents the amount to be received at a certain…

Q: During February 1, 2018 Royal Company sold merchandise with a price of P100,000 towards Dew…

A: The invoice for sales includes the terms for sales price, discount terms and payment date, etc. It…

Q: The amount of discount to be recorded if the invoice is paid within the discount period on a…

A: Trade discount is that discount which is being given to all the customers on the list price of the…

Q: Merchandise subject to terms 2/10, n/30, FOB shipping point, is sold on account to a customer for…

A: 2/10 indicates that a sales discount of 2% is allowed if the payment is made within 10 days.

Q: On 17 April Ak traders sold goods for R3400 by creadit card to M moody .The cost price on goods sold…

A: In order to earn a profit, goods are sold at a higher price than the cost of goods sold.

Q: Merchandise subject to terms 2/10, n/30, FOB shipping point, is sold on account to a customer for…

A: Given: Payments terms of 2/10, n/30, means that discount of 2% is valid for 10 days from the date of…

Q: a. b. Merchandise $10,700 $13,300 a. $ b. $ Freight Paid by Seller $376 $58 Freight Terms FOB…

A: Lets understand the basics.Under FOB destination, freight is the seller's expense and under the FOB…

Q: Determine the amount to be paid in full settlement of each invoice, assuming that credit for returns…

A: After the products are shipped from the seller's location, the buyer acquires ownership of them…

Q: True Value received an invoice dated May 10, 2020. The invoice had a $5,850 balance that included…

A: DISCOUNT TERM The 5/10 net 60 calculation is a way of providing cash discounts on purchases. It…

Q: Using the ordinary dating method, calculate the discount date and net date for the following…

A: DATE OF INVOICE : APRIL 23 TERM OF SALE : 3/15 , n/60 MEANS THAT 3% CASH DISCOUNT IS GIVEN IF…

Q: Trade discounts of 20/10 may be taken on an invoice that totals $938.50. This amount includes…

A: Amount due if invoice paid within discount period = invoice value - prepaid freight cost - trade…

Q: Habana Crown, a trading business owned by Norhan Fahl, enters into the following selected sales…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Recording Revenue and Receivables Under a Consignment Arrangement On March 15, 2020, Drexel Corp.…

A: Revenue recognition: this principle states that a firm should record revenue in its books of…

Q: You purchase goods on an invoice dated July 5 with terms of 4/15, n/45 ROG. If you receive the goods…

A: Answer - Part 1 - Computation of the last day of the discount period - Last day of discount period…

Q: An invoice received included the following information: merchandise price, $3,800; terms 1/10,…

A: Sales invoice:Sales invoice refers to the document which is used to inform the customer the amount…

Q: Determine the amount to be paid in full settlement of each invoice, assuming that credit for returns…

A: MERCHANDISE PURCHASED = MERCHANDISE - RETURN ALLOWANCE = $13,200 - $1,300 = $11,900 = MERCHANDISE…

Q: Determine the amount to be paid in full settlement of each invoice, assuming that credit for returns…

A: Note: Under FOB destination, freight is the seller's expense and under the FOB shipping point,…

Q: issued cheque no 4026 for 5400 to this supplier for the invoice at the time of purchase

A: Journal entry: The first step in accounting is a journal entry, which is used to record a business…

Q: 12. Solve for the amount of discount and amount due. Invoice amt: $ 314.88 Invoice date: Sept 17…

A: Customers are rewarded with cash savings if customers pay their bills within a particular time…

Q: A sales invoice included the following information: merchandise price, P4,100; transportation, P320;…

A: • FOB ( Destination)shipping point : Its the responsibility of buyer to pay the shipping charges .…

Q: Trade receivables (net of allowances of $45 at December 31, 2022 and $37 at December 31, 2021)…

A: Account receivable are the amount of balance of company money to be received in the future but are…

Q: An invoice for $128,700 dated August 26, 2014 for a shipment of furniture has payment terms 1.5/15,…

A: Trade credit refers to the practice of providing goods to the buyer who then pays for them at a…

Q: credit term followed as 4/10/EOM. a.

A: Here we have been given that the terms of sale are 4/10/EOM. That means the buyer who paid within 10…

Q: At December 31, 2020, Grouper Company has outstanding noncancelable purchase commitments for 39.500…

A: Introduction: Journal entries should not be used to record routine transactions such as customer…

Q: An invoice received included the following information: merchandise price, $3,200; terms 1/10,…

A: Sales invoice:Sales invoice refers to the document which is used to inform the customer the amount…

Q: Royal mart purchased goods on 12th March 2019 for RO 54,000 from Google mart. Calculate the Net…

A: "net 60" means the customer has 60 days to pay before the bill is overdue. Requirement is to find…

Q: What are the key points arising from the credit controller's review in respect of each trade…

A: Trade receivables are those receivables which the company have which has not been received by the…

Q: APPROPRIATE LEDGER ACCOUNT FOR RETURNED GOODS WORTH RM150 TO SHAH

A: We know that, first step of recording the transactions is passing journal entries then we post…

Q: The Bockner Company shipped merchandise to Laetner Corporation on December 28, 2018. Laetner…

A: Transportation Costs: The costs of delivering the merchandise inventory from the manufacturer to the…

Q: A credit sale of $3800 is made on April 25, terms 1/10, n/30, on which a return of $300 is granted…

A: Answer:- Credit sales meaning:- Sales of products or services on credit are referred to as credit…

Q: Required information [The following information applies to the questions displayed below.] Required:…

A: Journal entry is the procedure for initially documenting commercial transactions in the books of…

Q: What amount will be paid in full settlement of Invoice 22384, assuming that credit for returns and…

A: The question is based on the concept of Business Accounting

Question

a)
On 31 March 2021, an agreement was entered to buy goods at a future date. When the revenue should be
recognized?
b)
the company account for the revenue on account of the customer for the year ending 31st March?
The
power distribution company took the last reading of the customer during the year on 20th March. How will

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

(ADOPTED) Newton General Merchandise had the following transactions in March 2021:March 2Purchased merchandise amounting to Php 36,000. Terms: 2/10, n/30 FOB shipping point. Paid the freight bill amounting to Php 4,000.March 5Returned Php 3,000 of the merchandise purchased on March 2 because they were defective.March 8Sold merchandise on account for Php 10,000. Terms 3/15, n/30. The cost of the merchandise sold was Php 6,000.March 10Paid the purchase made on March 2 less the return and the discount.March 12Received Php 2,000 of the merchandise sold on March 8. The cost of the merchandise returned was Php 1,200.March 22Received cash from the March 8 customer in full settlement of his account less the return and the discount.REQUIRED:Prepare the appropriate journal entries for both periodic and perpetual inventory systems.
BUS 038 : Business Computatns5. You buy goods at a list price of $820. If you receive a trade discount of 25% and terms are “2/15, n/30,” what amount must you pay if you pay within the discount period?
How do you find the date goods are received, last day of discount, and end of credit period when the invoice is November 27 and the terms are 2/10 EOM?
What does it mean "listed at" example Merchandise purchased on May 4, "listed at" $520, is returned for credit.
xamus - cdn.student.uae.examus.net/?rldbqn=1&sessi... ACCT101_FEX_2021_2_Male A company purchased merchandise on credit with terms Ac Payable if the company pays SR485 cash on this account within ten days? e18 3/15, n/3O. How much will be debited to 33 - 34 abe18ce33 b. Accounts Payable should be credited in а. 485 113:22 9 కోల С. 470.45 95abe18ce 33 d. 500 95abe18ce 95abe18ce33 95aber8ce33 95abe18ce33 95abe18ce33 95abe18ce33 MacBook Pro F3 888 F4 FS E 5 F7 67 7 V T. 8 A 9 Y 6. U 11 9.
BLOCK D/2018/1 In t1, you purchase goods on target in the amount of € 9 thousand (net). Furthermore, transport costs of € 500 (net) to be paid to an external service provider for the purchase of the goods are incurred (incidental acquisition costs); payment is also made on destination. Your col- lege posts the goods receipt as follows: purchase of goods € 9,000 and amounts of € 1,710 intrade payables € 10,710 as well as Other operating expenses for trade payables €500. The goods are to be sold in t2. It is foreseeable that you will be able to sell the goods witha high profit margin. Do the postings of the colleague lead to an accrual determination of success? If further bookings or corrections are required in t1, make them and justify your action with reference to the possible bookings. relevant legal regulations!
Determine the amount to be paid in full settlement of each invoice, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Freight Paid Returns and Merchandise by Seller Freight Terms Allowances a. $11,000 $266 FOB Shipping Point, 1/10, net 30 $1,100 $14,000 $65 FOB Destination, 2/10, net 45 $3,100 a. b. %24 %24 b.
K An invoice is dated June 18 with terms 3/10-50 ex. Find the final discount date and the net payment date. The net payment date is 20 days after the final discount date. The final discount date is The net payment date is June July ▼ ▼ CHE
Freight Terms 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 all invoices were paid within the discount period. a. b. a. b. Merchandise $120,800 147,700 00 Freight Paid by Seller $1,300 2,100 Freight Terms FOB shipping point, 1/10, n/30 FOB destination, 2/10, n/30
Freight Terms 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 all invoices were paid within the discount period. If required, round the answers to the nearest dollar.
BUS 038 : Business Computatns4. You buy goods on an invoice dated October 28, with terms of 2/20, n/45. What is the last day of the discount period?
Item3 Return to questionItem 3 On June 30, 2024, the Esquire Company sold merchandise to a customer and accepted a noninterest-bearing note in exchange. The note requires payment of $42,000 on March 31, 2025. The fair value of the merchandise exchanged is $40,425. Esquire views the financing component of this contract as significant. Required: Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), any December 31, 2024 interest accrual, and the March 31, 2025 collection. What is the effective interest rate on the note?