A company sold goods worth $10,000 to a customer on credit. The terms of the credit are 3/15, net 45. The customer paid within the discount period. Calculate the amount received from the customer, the discount allowed, and the journal entry to record the transaction.

A company sold goods worth $10,000 to a customer on credit. The terms of the credit are 3/15, net 45. The customer paid within the discount period. Calculate the amount received from the customer, the discount allowed, and the journal entry to record the transaction.

Quickbooks Online Accounting

3rd Edition

ISBN:9780357391693

Author:Owen

Publisher:Owen

Chapter4: Operating Activities: Sales And Cash Receipts

Section: Chapter Questions

Problem 1.7C

See similar textbooks

Related questions

Q: Elkhorn Company purchased merchandise on account from Springhill Company for $42,000, terms 2/10,…

A: Accounts payable are the suppliers from whom a company purchases its raw material or input stock. In…

Q: Merchandise is sold on account to a customer for $17,800, terms FOB shipping point, 1/10, n /30. The…

A: The credit terms is 1/10, n/30 which means if the payment has been paid within 10 days, then 1%…

Q: Barans Company purchased merchandise on account from a supplier for $13,000, terms 2/10, n/30.…

A: In case of no information for inventory system, the perpetual method is inventory is assumed. Using…

Q: Journalize the entries for the following transactions: a. Sold merchandise for cash, $22,250. The…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Prepare the following journal entries. a. customer is given an allowance of $ 425. b. A…

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

Q: Hall Inc. made a $30,000 sale on account with the following terms: 2/10, n/30. If the company uses…

A: In case of net method, the sales discount is not recorded only the net amount will be recorded in…

Q: sales invoice included the following information: merchandise price, $4,500; transportation, $300;…

A: Net Sales = Sales - Returned

Q: After the amount due on a sale of $29,200, terms 1/10, n/eom, is received from a customer within the…

A: Merchandising businesses: Merchandising companies which buy goods from suppliers, or manufacturers,…

Q: Barans Company purchased merchandise on account from Springhill Company for $10,600, terms 2/10,…

A: Net Purchases = Purchases - Purchase return = $10,600 - $2,200 = $8,400

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

A: Credit terms 2/10 means 2% discount will be given if payment is made with in 10 days

Q: Barans Company purchased merchandise on account from a supplier for $9,200, terms 1/10, n/30. Barans…

A: 1/10 net 30 means 1% discount will be there if payment is made with in 10 days and no discount after…

Q: Barans Company purchased merchandise on account from a supplier for $7,100, terms 2/10, n/30. Barans…

A: The cash discount which has available on the purchases is when the condition is fulfilled and the…

Q: Merchandise is sold on account to a customer for $14,100, terms FOB shipping point, 2/10, n/30. The…

A: FOB: FOB stands for free on board. FOB is term that determines the person who is liable for damage…

Q: A sales invoice included the following information: merchandise price, $8,000; terms 2/10, n/eom.…

A: Formula to calculate cash received by the seller:Cash received by seller = Merchandise price -…

Q: Hoffman Company purchased merchandise on account from a supplier for $65,000, terms 1/10, n/30.…

A: Purchase: Purchase is an activity of acquiring the merchandise inventory of a business.

Q: Barans Company purchased merchandise on account from Springhill Company for $12,800, terms 2/10,…

A: Amount due after merchandise return = $12,800 - $3,200 = $9,600

Q: Alpha Corporation sells $2799 of merchandise on account to Blackwell Company with credit terms of 3…

A: Payments terms of 3/10, n/30 means discount of 3% on goods is valid for 10 days from the date of…

Q: Abbey Co. sold merchandise to Gomez Co. on account, $35,100, terms 2/15, net 45. The cost of the…

A: Gross profit margin is the profit arrived after considering all direct costs relating to the sale of…

Q: The entry to record the receipt of payment within the discount period on a sale of $2,000 with terms…

A: Sales Discounts = Receivable amount x rate of discount = $2,000 x 3% = $60

Q: The Stationery Company purchased merchandise on account from a supplier for $9,300, terms 1/10,…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: A sales invoice included the following information: merchandise price, $6,000; terms 2/10, n/eom.…

A: Formula to calculate cash received by the seller:Cash received by seller = Merchandise price -…

Q: Merchandise is sold on account to a customer for $18,300, terms FOB shipping point, 1/10, n/30. The…

A: Accounts receivable: It is a current asset of an organization. It is the amount due from customers…

Q: A sales invoice included the following information: merchandise price, $6,000; terms 2/10, n/30.…

A: Payment terms 2/10, n/30 means discount of 2% is valid till 10 days from the date of purchase.…

Q: Dollar Co. sold merchandise to Pound Co. on account, $25,500, terms 2/15, net 45. Pound Co. paid the…

A: Credit Term 2/15, net 45 means the Credit period is 45 Days dollar company has to make the payment…

Q: After the amount due on a sale of $28,000, terms 2/10, n/eom, is received from a customer within the…

A: a.

Q: On January 12th, Gates Gems returned merchandise they received on account from Gem Warehouse in the…

A: Here in this question, we are required to pass journal entry to reverse purchase made previously.…

Q: Select a description for each transaction recorded in the following T accounts: Cash (c)…

A: Introduction: Ledger: After recording journals , all the entries are to be posted in each individual…

Q: The entry to record the receipt of payment within the discount period on a sale of $1500 with terms…

A: accounts receivables for 1500Explanation:The discount amount on $1,500 would be:1,500 x 1% = 15…

Q: Barans Company purchased merchandise on account from Springhill Company for $13,900, terms 2/10,…

A: A. Calculate the amount of cash required for the payment.

Q: merchandise with an invoice amount of $2,800 and received full credit. a. If Nieman Company pays…

A: In the given question, Springhill Company purchased goods worth $ 12,100 and returned goods worth $…

Q: Merchandise is sold on account to a customer for $56,500, terms FOB shipping point, 2/10, n/30. The…

A: a.Calculate the net sales after discount.

Question

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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: Introduction:

VIEW

Step 2: Amount received and discount allowed:

VIEW

Step 3: Journal entry:

VIEW

Solution

VIEW

Step by step

Solved in 4 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

Review the following transactions and prepare any necessary journal entries for Tolbert Enterprises. A. On April 7, Tolbert Enterprises contracts with a supplier to purchase 300 water bottles for their merchandise inventory, on credit, for $10 each. Credit terms are 2/10, n/60 from the invoice date of April 7. B. On April 15, Tolbert pays the amount due in cash to the supplier.
Prepare the following journal entries. sales on account are $ 8,200. customer returns $ 1,200. customer is given an allowance of $ 425. a customer owes on account $ 2,000. The customer pays within the discount period and receives a sales discount of $ 40. Record the receipt of cash of $1,960.
Prepare the following journal entries. a. customer is given an allowance of $ 425. b. A customer owes on account $ 2,000. The customer pays within the discount period and receives a sales discount of $ 40. Record the receipt of cash of $1,960.
A sales invoice included the following information: merchandise price, $6,000; terms 2/10, n/30. Assuming that a credit for merchandise returned of $600 is granted prior to payment, and that the invoice is paid within the discount period, what is the amount of cash received by the seller?
A sales invoice included the following information: merchandise price, $6,000; terms 2/10, n/eom. Assuming that a credit for merchandise returned of $600 is granted prior to payment, and that the invoice is paid within the discount period, what is the amount of cash received by the seller?
Merchandise is sold on account to a customer for $56,500, terms FOB shipping point, 2/10, n/30. The seller paid the freight of $2,100. Determine the following: (a) amount of the sale, (b) amount debited to Accounts Receivable, and (c) amount received within the discount period.
The Stationery Company purchased merchandise on account from a supplier for $9,300, terms 1/10, n/30. The Stationery Company returned $1,200 of the merchandise and received full credit. a. If Stationery Company pays the invoice within the discount period, what is the amount of cash required for the payment? b. Under a perpetual inventory system, what account is credited by Stationery Company to record the return? Cost of Merchandise Sold ? Inventory ? Sales ? Accounts Payable?
Merchandise subject to the credit terms 2/10, n/30, FOB shipping point, is sold to a customer on account for $20,125. The seller issued a credit memorandum for $4,600 prior to payment. What is the amount of the cash discount allowable if the payment is made within 10 days of the invoice date?
After the amount due on a sale of $29,200, terms 1/10, n/eom, is received from a customer within the discount period, the seller consents to the return of the entire shipment for a cash refund. The cost of the merchandise returned is $17,520. a. What is the amount of the refund owed to the customer? Journalize the entries made by the seller to record the return and the refund.
A sales invoice included the following information: merchandise price, $4,500; transportation, $300; terms 1/10, n/eom, FOB shipping point. Assuming that a credit for merchandise returned of $600 is granted prior to payment, that the transportation is prepaid by the seller, and that the invoice is paid within the discount period, what is the amount of cash received by the seller?
The journal entry to record the receipt of a payment from customer within the discount period on a sale of $2325 with terms of 3/10, n/30 will include a credit to O a. Sales discounts for $70 O b. Accounts receivable for $2325 O c. Sales Revenue for $2325 O d. Cash for $2255
Merchandise is sold on account to a customer for $18,300, terms FOB shipping point, 1/10, n/30. The seller paid the freight of $570. Determine the following: a. Amount of the sale b. Amount debited to Accounts Receivable c. Amount recieved within the discount period