Assume that a company records purchases net of discount. If the company bought merchandise valued at P10,000 on credit terms 3/15, net 30, the entry to record a payment for half of the purchase within discount period would include a debit to
Q: Purchase-Related Transactions The Wheatland Company purchased merchandise on account from a…
A: 1/10,n/30 term means that if payment is made within 10 days from purchase, 1% of discount will be…
Q: Merchandise subject to terms 2/10, n/30, FOB shipping point, is sold on account to a customer for…
A: Accounting: Accounting is a system, or a process of collecting and organizing economic…
Q: net sales from the above transactions? 12. Silver Co. sold merchandise to Bronze Co. on account,…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: Abbey Co. sold merchandise to Gomez Co. on account, $10,400, terms 2/15, net 30. The cost of the…
A: Gross profit: It implies to the profit that is earned by the business after subtracting it's direct…
Q: Journalize the entries to record the sale on December 31. B. Journalize the entries to record the…
A: Given information is: Scheduled Co. Sold merchandise on account to Bernard Retail Inc. for $15,000,…
Q: he entry to record the receipt of payment within the discount period on a sale of $2400 with terms…
A: Terms 2/8, n/30 indicate that if the payment is made within 8 days discount shall be allowed at the…
Q: Abbey Co. sold merchandise to Gomez Co. on account, $42000, terms 2/15, net 45. The cost of the…
A: Net sales = Total sales - Sales return = $42000 - $4000 = $38000 Cost of goods sold =Original cost…
Q: Stockton Company sold goods on account with a sales price of $70,000 on August 17. The terms of the…
A: 2/10 net 30 means 2% discount will be there if payment is made with in 10 days and no discount after…
Q: A merchandiser receives payment in full after the expiration of the discount period on a P3,000…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: The company purchased merchandise for ₱55,496 less 2 on terms 50% down, balance 2/10, n/30. How…
A: Purchase discount is a discount provided by the seller if payment is made within a specific period…
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 with a sales price of $1,100 is sold on account with terms 2/10, n/30. The journal entry…
A: 2/10, n/30 indicates that a discount of 2% will be given if payment is received within 10 days and…
Q: A Company purchased P3,600 of merchandise on account, terms 2/10, n/30. If payment was made after…
A: Purchase price = P 3600 Payment after expiration of the discount period
Q: ABC Company sold merchandise with P10,000 list price, subject to trade discount of 25%, and is paid…
A: 2/10 net 30 means 2% discount will be there if payment is made with in 10 days and no discount after…
Q: JIH took delivery of merchandise invoiced at $24,600.00 with terms cash 6, 2/40, n/60. Calculate the…
A: The interest is calculated based on certain terms and conditions. The payment is depends on time…
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: Merchandise with a sales price of $1,100 is sold on account with terms 2/10, n/30. The journal entry…
A: Sales discount = $1,100 x 2% Sales discount = $22
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: On January 1, a company made a sale of $87,500, on credit. If the credit terms were 2/10, n/30, what…
A: Sales discounts: The merchandisers offer a reduction in sales price on initial sales, to accelerate…
Q: A sales invoice included the following information: merchandise price, $9,000; terms 1/10, n/eom,…
A: Sales invoice: Sales invoice refers to the document which is used to inform the customer the amount…
Q: If the Safe company sold merchandise on 2, April, for $2000 with terms of 2/10,N/30 ,and the…
A: We know that, Prepaid insurance is a asset account and Insurance expenses is an expense accounts.…
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: Kingbird, Inc. purchased merchandise inventory with an invoice price of $13100 and credit terms of…
A: SOLUTION 1- GIVEN, PURCHASED AMOUNT = 13100 DISCOUNT RATE = 2%
Q: The entry to record a sale of P7,500 with terms of 2/10, n/30 would include a. Debit to sales for…
A: Note: 2/10, n/30: Here, 2 represents the discount rate if payment is made within ten days. And if…
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: Barans Company purchased merchandise on account from a supplier for $9,200, terms 2/10, n/30. Barans…
A: Sales are the revenues generated by the business from its day to day operations. The sales revenue…
Q: Corinto Co. sold merchandise to Genesis Co. on account, P18,000, terms 2/15, net 45. The cost of the…
A: Solution:- Calculation of net sales:-
Q: Compute the amount to be paid for each of the four separate invoices assuming that all invoices are…
A: Amount to be paid = Gross Amount × (100 - Discount) %
Q: Piedmont Company purchased merchandise on account from a supplier for $30000, terms 1/10, n/30.…
A: Given, Purchases = $30,000 Purchase returns = $8,000 Cash discount = 1%
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: On September 1, Jerry's Lighting purchased merchandise with a list price of $12,500 with credit…
A: Total amount paid = Net Purchase - discount amount where, Net Purchase = list price - purchase…
Q: A sales invoice included the following information: merchandise price, $9,000; terms 1/10, n/eom;…
A: The seller is a person who sells the goods and would receive money for the goods sold.
Q: A company purchases merchandise for $23,000. The seller also offers credit terms of 2/10, n/30.…
A: Cost of purchase = 23000 Credit Terms = 2/10, n/30
Q: Purchase-Related Transactions Oppenheimer Company purchased merchandise on account from a supplier…
A: Discount is a benefit offered by a seller to the buyer for the payment done within the time period…
Q: You purchase goods with a net price of $240. The invoice is dated October 7 with terms of 3/20,…
A: (a) Cash discount = Net price * Cash discount percentage Cash discount = $240 * 0.03 Cash discount =…
Q: How much is the accounts payable? • How much is the discount if paid in full within the discount…
A: The question pertains to discount allowed on timely payment. Whenever goods are sold on credit the…
Q: Merchandise subject to terms 4/15, n/28, FOB shipping point, is sold on account to a customer for…
A: Merchandise subject to terms 4/15, n/28, means there will be a cash discount of 4% if payment is…
Q: A Retailer purchased merchandise inventory with an invoice price of RO 80,000 and credit terms are…
A: The net cost of goods sold if payment made within discount period is 78,400 Net Cost of Goods…
Q: If merchandise is sold on account to a customer for $1,000, terms FOB shipping point, 1/10, n/30,…
A: Lets understand the basics. Seller for attracting early payment, gives the discount term to the…
Q: A customer pays on credit for $1,250 worth of merchandise, terms 4/15, n/30. If the customer pays…
A: Perpetual Inventory System: Perpetual Inventory System refers to the inventory system that maintains…
Q: M&M Company purchased $3,600 of merchandise on account, terms 2/10,n/30. If payment was made after…
A: Creditors are the one who owes money from us, whether due to credit purchase, service or loan. It is…
Q: Compute the amount to be paid for each of the four separate invoices assuming that all invoices are…
A: Solution... Net payment = Gross merchandise * (100% - Discount%) (a). $10,000 * 98% = $9,800…
Q: Assume that a company records purchases net of discount. If the company bought merchandise valued at…
A: Purchases are recorded net of discount which means Accounts payable will be recorded as net of…
Q: Assume the following information: merchandise is sold on account to customer for P120,000, FOB…
A: Under FOB Shipping arrangement, the responsibility of seller is to deliver the goods to the shipping…
Q: Compute the amount to be paid for each of the four separate invoices assuming that all invoices are…
A: Answer a) The terms 2/10, n/60 means, that 2% discount will be allowed if payment is made within 10…
Q: Entity J sold merchandise to Entity X on account, P23,000, terms 3/15, net 45. The cost of the…
A: Sales discount = (sales - sales return) * discount rate = (23000-2500) *3% = P615
Q: Cruise Industries purchased $10,800 of merchandise on February 1, 2020, subject to a trade discount…
A: a. Assuming that Cruise uses the perpetual method for recording merchandise transactions, record…
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- Assume that a company records purchases net of discount. If the company bought merchandise valued at P10,000 on credit terms 3/15, net 30, the entry to record a payment for half of the purchase within discount period would include a debit to * Accounts Payable for P4,850 and a credit to Cash for P4,850 Accounts Payable for P5,000 and a credit to Cash for P5,000 Accounts Payable for P4,850 and to Interest Expense for P150 and a credit to Cash for P5,000 Accounts Payable for P4,850 and to Interest Revenue for P150 and a credit to Cash for P5,000Merchandise invoiced at $8,900 is sold on terms 1/10, n/30. If the buyer pays within the discount period, what amount will be reported on the income statement as net sales?The entry to record the receipt of payment within the discount period on a sale of $2400 with terms of 2/8, n/30 will include a Answer- credit to accounts receivable for $2400 Kingbird, Inc. purchased merchandise inventory with an invoice price of $13100 and credit terms of 2/10, n/30. What is the net cost of the goods if Kingbird, Inc. pays within the discount period? Answer- 12,838 Just tell me the difference between the phrasing of the two questions. In other words, why don't I multiply 0.02 percent to 2,400 and then subtract $48 to get 2352 debit to sales revenue for the first question?
- Assume the following information: merchandise is sold on account to customer for P120,000, FOB Shipping Point, 2/10, n/30. The seller paid transportation cost of P6,000. What is the amount of remittance due within the discount period?A sales invoice included the following information: merchandise price, P4,100; transportation, P320; terms 1/10, n/EOM, FOB destination. Assuming that a credit for merchandise returned of P605 is granted prior to payment, that the transportation is prepaid by the seller, and the invoice is paid within the discount period, what is the amount of cash received by the seller? O A. 3,780.05 O B. 3,776.85 C. 3,460.05 O D. 3,140.05Select the best answer for the question. 7. Company A records purchases using the net price method. It an item is purchased from a supplier for $800 on terms of 3/10, n/30, the correct accounting entry would be O A. Purchases 776 Purchase Discounts 24 Accounts Payable OB. Purchases Accounts Payable O.C. Purchases D Accounts Payable OD. Accounts Payable 776 800 Purchases Purchase Discounts 800 >
- The entry to record a sale of P7,500 with terms of 2/10, n/30 would include a. Debit to sales for P7,350 b. Debit to sales Discount for P150 c. Credit to Accounts Receivable for P7,500 d. Credit to sales for P7,500which one in 1-4 is correct? The entry to record the receipt of payment within the discount period on a sale of $2400 with terms of 2/8, n/30 will include a 1. credit to Sales Discounts for $48. 2. credit to Sales Revenue for $2400. 3. debit to Sales Revenue for $2352. 4. credit to Accounts Receivable for $2400.A sales invoice included the following information: merchandise price, P4,200; transportation, P320; terms 1/10, n/EOM, FOB shipping point. Assuming that a credit for merchandise returned of P600 is granted prior to payment, that the transportation is prepaid by the seller, and the invoice is paid within the discount period, what is the amount of cash received by the seller? O A. P3,878 B. P3,880.80 O C. P3,558 O D. P3,884 20
- The entry to record the receipt of payment within the discount period on a sale of $4000 with terms of 2/10, n/30 will include a credit to O Accounts Receivable for $4000. O Sales Discounts for $80. O Cash for $3920. O Sales Revenue for $4000.Sales-Related Transactions After the amount due on a sale of $172,675, terms 2/10, n/30, is received from a customer within the discount period, the seller consents to the return of the entire shipment. The cost of the merchandise returned was $103,605. If required, round your answers to nearest whole value. a. What is the amount of the refund owed to the customer? b. Illustrate the effects on the accounts and financial statements of the return and the refund. If no account or activity is affected, select "No effect" from the dropdown and leave the correspondir number entry box blank. Enter account decreases, net cash outflows, and all negative effects on net income as negative amounts. Balance Sheet Stockholders' Assets Liabilities Equity Cash v + Inventory v Est. Returns Inventory = Customer Refunds Payable v + No effect v Statement of Cash Flows Income Statement Operating v No effect vIf merchandise sells for $3,500, with terms 3/15.n/45 , and the cost of the inventory sold is $2,100, the amount charged to sales under the net method of recording sales discounts is?