At what amount would the purchase on February 1 be recorded for the net price if the net method were used? **Question 3 of 9****Current Attempt in Progress**Bramble Industries purchased $9,300 of merchandise on February 1, 2025, subject to a trade discount of 10% and with credit terms of 3/15, n/60. It returned $2,300 (gross price before trade or cash discount) on February 4. The invoice was paid on February 13.---There are no graphs or diagrams in the image. The text provides details about a financial transaction involving Bramble Industries, focusing on trade discounts and credit terms.

TRADE DISCOUNT Trade Discount is a discount on the retail price of something allowed or agreed…

Answered: At what amount would the purchase on…

Business

Accounting

At what amount would the purchase on February 1 be recorded for the net price if the net method were used?

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: what is the effect of purchase supples on accout on current ratio?

A: Current ratio is the one that shows the current assets as numerator and current liabilities…

Q: 29 - How are purchase refunds recorded to which account? A) From the purchase to the debt of the…

A: Purchase returns are always in a nature of returns made to the sellers and thus decreasing the…

Q: Prepare a contribution margin income statement for Head-First Company for the coming year. Refer to…

A: Definition: Variable costs are those costs which change in same proportion as level of activity…

Q: How are days’ sales in inventory calculated, and what does it measure?

A: Numbers of days to sell inventory: This ratio is determined as the number of days a particular…

Q: Under what circumstances is the relative sales value an appropriate basis for determining the price…

Q: Which accounting technique gives the most relevant information (net cost or gross invoice price)

A: The most relevant information of accounting technique will be explained:

Q: In accountinf for sales discounts, most companies use the a. Allowance method b. Gross price…

A: The most commonly used method is the gross price method.in these sales, the discount is deducted…

Q: Determine the gross profit from sales for the period.

A: Revenue: It refers to the earnings of an organization form business operations for a particular…

Q: ost per unit of purchases over a period r decrease in purchases in relation to the

A: Data is unprocessed facts or figures that are not organzied.Information is processed and organized…

Q: ) What was Bellcamp's total sales, cost of goods sold, gross profit, and gross profit margin for…

A: Many Companies have different division , products, regions have Sales and then when its consolidated…

Q: effect of purchase on account on current rattion

A: Current Ratio (CR): It is one of the liquidity ratios which measures the company’s ability to pay…

Q: Which of the following methods of inventory valuation assumes that the cost of the most recently…

A: Lets understand the basics. There are various methods are followed while valuing inventory which…

Q: How would I go about finding the previous reported sales, when I have the current sales and the…

A: Given: Current Sales Percentage increase in Sales

Q: Under what circumstances would the gross profit method of estimating inventory be used?

A: The gross profit method of estimating inventory is typically used in situations where a company…

Q: The cost of an item if the full amount had been paid at the time of sale is called the O A. down…

A: Total Price It is a full purchase price for purchasing the consumer item, excluding the sales tax…

Q: Should inventory be measured initially at its market value or at cost?

A: Accounting: Accounting is a system, or a process of collecting and organizing economic…

Q: Explain the argument for and against the use of net price method with respect to purchase discounts?

A: The Net Price Method (NPM) provides information about the purchase discounts lost by the company and…

Q: When does a company typically recognize revenue for a bill-and-hold sale?

A: Bill and hold agreements represent a sales arrangement in which the buyer pays for the item or items…

Q: Briefly describe the guidelines provided by GAAP for the recognition of revenue by a franchisor for…

A: Franchise arrangement and performance obligation: In a franchise transaction, the franchisor has…

Q: purchase discount is relevant into the followings cycles: a. payroll and personnel O b. sales and…

A: Accounting is essential to operating a company since it allows businesses to track income and…

Q: Under what circumstances should sellers consider the time value of money when recognizing revenue?

Q: How do you get the inventory for a future date in perpetual inventory FIFO METHOD

A: FIFO (first-in,first-out) Method under perpetual inventory system: It is the method in which the…

Q: Define each of the following terms:e. Inventory conversion period; average collection period;…

A: Inventory conversion period The time between the day when the materials are purchased and the day…

Q: All of the following typically would be considered when estimated sellers cost except ------…

A: all of the above will be considered as estimated seller cost except " Pre payment Penalty"

Q: Which of the following statements is incorrect? a) Sales tax collected by a seller is recorded as…

A: Free on Board contracts are contracts in which the seller is responsible only till goods are on…

Q: Inventory information for Part 311 of Waterway Corp. discloses the following information for the…

A: The question is based on the concept of Cost Accounting. According the standards the valuation of…

Q: While reporting revenue, how a company should consider barter arrangement and discount?

A: Revenue Reporting: The process of accounting for revenue for a product you offer to a client is…

Q: Under which method of inventory valuation, the average price used for valuation of goods issued is…

A: Inventory is the material in which the business deal. It is a very important component of company…

Q: What is the proper accounting for volume discounts onsales of products?

A: Volume discounts: It is an incentive to encourage for an increase in business. The seller issue…

Q: What does the retail inventory estimates?

A: Retail inventory method: The retail inventory method is used to calculate the value of ending…

Q: What do you call to a document issued when you purchase or sold on account (credit basis)? 2. It is…

A: The accounting is a process to identify the business transactions, record the transactions and…

Q: What are the purposes of the period-end adjustment under the periodic inventory system?

A: Periodic inventory system: The method or system of recording the transactions related to…

Q: What is the formula for calculating sales tax? A. Amount of Purchase x Sales Tax Rate = Sales Tax B.…

A: Sales tax : Sales tax is the amount that the merchant must charge to customers who purchase the…

Question

At what amount would the purchase on February 1 be recorded for the net price if the net method were used?

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Financial Reporting in Hyperinflationary Economies

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

QUESTION 2 If a company sells its accounts receivables to a factor O a. there is a gain on the sale of the receivables. O b. the seller of the A/R pays a fee to the factor. O c. the factor pays a fee to the seller of the A/R. O d. the seller defers recognition of sales revenue until the account is collected by the factor.
The perpetual and periodic systems are different methods of recording the purchase and sale of inventory during the year in the accountingrecords.You are required to answer the following questions on the two methods:a. Explain TWO differences between the perpetual and the periodic systems. b. How do we record a sales return by a client under the perpetual method if the client purchased the item on credit and has not yet settled theiraccount.
If a company understates its inventory, what are the effects on cost of goods sold and net income for the current year?
Which of the following is indicative of discounts received from a supplier on account of volume of inventory purchased? a) Early settlement discountb) Value discountc) Quantity discount
Explain how the sale of inventory on account is recorded under a periodic system. How does this differ from the recording under a perpetual system?
What is the normal balance of the contra-revenue accounts: Sales Return and Sales Discount and Allowances accounts?
Which inventory valuation model serves as a middle-of-the-road approach for taxes and income? a.Last-in, First-out b.First-in, First-out c.Average-cost d.Specific-unit-cost
Which of the following refers to a reduction in the list price of a product agreed between a manufacturer to a wholesaler? a. Mark up b. Trade discount c. Payroll d. Insurance
When equipment is sold for morethan book value, how is the transaction recorded? Howis it recorded when the selling price is less than bookvalue?
Which of the following is accounted for prospectively? Change in reporting entity. Change in the percentage used to determine warranty expense. Correction of an error. Changes from the weighted-average method of inventory costing to FIFO.
How do you determine the invoice of merchandise returned?
44.Which is a valid statement regarding the gross price, net price and allowance methods of recording accounts receivable from customers? a. Under the gross method, sales discount is recorded when taken and this account is reported as an item of other expense in the statement of comprehensive income. b. Under the net method, sales discount is recorded when not taken and this is reported as an item of other income in the statement of comprehensive income. c. When accounts receivable have not yet been collected at the end of the year and the discount period has already lapsed, after appropriate adjusting entry(ies), the amount of net accounts receivable reported under the gross method is greater than the amount reported under the net method. d. When accounts receivable have not yet been collected at the end of the year and the discount period has already lapsed, no adjusting entry is required under the net method.