Bally Manufacturing sent Intel Corporation an invoice for machinery with a $13,300 list price. Bally dated the invoice July 30 with 2/10 EOM terms. Intel receives a 20% trade discount. Intel pays the invoice on August 12. On August 08, Intel Corporation returns $800 of the machinery due to defects. What does Intel pay Bally on August 12?

Bally Manufacturing sent Intel Corporation an invoice for machinery with a $13,300 list price. Bally dated the invoice July 30 with 2/10 EOM terms. Intel receives a 20% trade discount. Intel pays the invoice on August 12. On August 08, Intel Corporation returns $800 of the machinery due to defects. What does Intel pay Bally on August 12?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Bulldog Inc. recently made a $75,000 purchase from a vendor. The vendor will accept payment by check or ACH. In either case, the vendor offers net trade credit terms of 30 days. The assistant treasurer of Bulldog Inc. notes that payment by check will provide an additional 3 days of float (beyond the 30 days of trade credit), relative to payment by ACH (assume an additional one day of float beyond the trade credit period). In an effort to encourage Bulldog Inc. to pay via ACH, the vendor has offered a 0.50% discount for ACH payments. Assuming a discount rate of 5%, which disbursement approach should Bulldog Inc. use? Ignore the transactions cost associated with the check and ACH entry.
Record the transactions on the books of Martinez corporation.
Bally Manufacturing sent Intel Corporation an invoice for machinery with a $13,800 list price. Bally dated the invoice August 01 with 5/10 EOM terms. Intel receives a 40% trade discount. Intel pays the invoice on August 14. What does Intel pay Bally? Payable amount
On March 30, Century Link received an invoice dated March 28 from ACME Manufacturing for 59 televisions at a cost of $125 each. Century received a 12/2/5 chain discount. Shipping terms were FOB shipping point. ACME paid the $119 freight. Terms were 3/10 EOM. When Century received the goods, 2 sets were defective. Century returned these sets to ACME. On April 8, Century sent a $ 250 partial payment. Century will pay the balance on May 6. What is Century's final payment on May 6? Assume no taxes. Note: Round your intermediate calculations and final answers to the nearest cent.
Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2021 with a refund liability of $390,000. During 2021, Halifax sold merchandise on account for $12,400,000. Halifax's merchandise costs it 65% of merchandise selling price. Also during the year, customers returned $368,000 in sales for credit, with $203,000 of those being returns of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns, estimated to be 3% of sales, are recorded as an adjusting entry at the end of the year. a) Record the year-end adjusting entry for estimated returns. b) Record the adjusting entry for the estimated return of merchandise to inventory. c) What is the amount of the year-end refund liability after the adjusting entry is recorded?
On June 06, Talbots of Boston sold Forrest of Los Angeles $8,150 of fine clothes. Terms were 4/10 EOM FOB Boston. Talbots agreed to prepay the $80 freight. If Forrest pays the invoice on June 8, what will Forrest pay?
On March 30, Century Link received an invoice dated March 28 from ACME Manufacturing for 63 televisions at a cost of $135 each. Century received a 10/5/2 chain discount. Shipping terms were FOB shipping point. ACME prepaid the $83 freight. Terms were 4/10 EOM. When Century received the goods, 3 sets were defective. Century returned these sets to ACME. On April 8, Century sent a $235 partial payment. Century will pay the balance on May 6. What is Century’s final payment on May 6? Assume no taxes. Note: Do not round intermediate calculations. Round your answer to the nearest cent.
Monty Corporation shipped $20,600 of merchandise on consignment to Gooch Company. Monty paid freight costs of $1,800. Gooch Company paid $550 for local advertising, which is reimbursable from Monty. By year-end, 63% of the merchandise had been sold for $21,500. Gooch notified Monty, retained a 10% commission, and remitted the cash due to Monty.Prepare Monty’s journal entry when the cash is received. (Round answers to 0 decimal places, e.g. 1,525. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
On March 18, Kudos Corporation sells snack products to a retail warehouse club chain for $40,000 (cost of $24,000). The contract includes an obligation for the warehouse club to run certain advertising campaigns for the snack products in exchange for $3,200 cash from Kudos Corporation on the contract date. The comparable price for this type of advertising campaign to be conducted by a third party is $3,200. Required a. Prepare kudos' journal entry on March 18 for the product sale, the cost of the product sale, and the purchase of advertising services. b. Assume instead that Kudos sold $40,000 of product to a customer (cost of $24,000) and has agreed to pay the customer $800 in slotting fees for preferential product placement in displays. Kudos will pay the $800 fee on April 30. Prepare kudos' journal entry on March 18 for the product sale and the cost of the product sale, and then on April 30 for the payment of the slotting fee. • Note: If a line in a journal entry isn't required for…
Maplewood Supply received a $5,430 invoice dated 4/15/20. The $5,430 included $330 freight. Terms were one discount, assume date of last discount.) a. If Maplewood pays the invoice on April 27, 2020 what will it pay? Payable amount b. If Maplewood pays the invoice on May 21, what will it pay? Payable amount 4 3 n 10 " (If more than ' 30 60
Flint Corporation shipped $20,400 of merchandise on consignment to Gooch Company. Flint paid freight costs of $2,000. Gooch Company paid $480 for local advertising, which is reimbursable from Flint. By year-end, 62% of the merchandise had been sold for $21,500. Gooch notified Flint, retained a 10% commission, and remitted the cash due to Flint. Prepare Flint's journal entry when the cash is received. (Round answers to 0 decimal places, e.g. 1,525. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation (To record the cash remitted to Flint.) (To record the cost of inventory sold on consignment.) Debit Ill Credit
On July 15, Zink Jewels agrees to a contract to sell 4,000 promise rings for $100,000 to Costless Stores, Inc. On October 1, after 2,000 rings pair of have been delivered, Zink and Costless modify the agreement to reduce the price of the remaining 1,000 rings to $12 each. During October, Zink Jewels delivers 600 rings. How much revenue will Zink recognize for the month of October?$7,200 $2,175 $3,300 $13,050