Beta Company has incurred the following costs during the current year: Cost of purchases based on vendor's invoices.. Trade discounts on purchases already deducted from the vendor's invoices. • Importation duties and taxes.. • Freight and insurance on purchases. • Other handling costs relating to imports. Salaries of accounting department. • Fees paid to customs broker who processed the importation documents.. • Sales commission paid to sales agents. P 5,000,000 500,000 400,000 1,000,000 100,000 600,000 200,000 300,000 After-sales warranty costs. What is the total cost of purchases? 250,000 A. P5,700,000 В. Р6,100,000 С. Р6,700,000 D. P6,500,000

Beta Company has incurred the following costs during the current year: Cost of purchases based on vendor's invoices.. Trade discounts on purchases already deducted from the vendor's invoices. • Importation duties and taxes.. • Freight and insurance on purchases. • Other handling costs relating to imports. Salaries of accounting department. • Fees paid to customs broker who processed the importation documents.. • Sales commission paid to sales agents. P 5,000,000 500,000 400,000 1,000,000 100,000 600,000 200,000 300,000 After-sales warranty costs. What is the total cost of purchases? 250,000 A. P5,700,000 В. Р6,100,000 С. Р6,700,000 D. P6,500,000

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 14BEA: Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000....

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3. Victoria Company purchases the accounts receivable of other companies on a without recourse, notification basis under a regular factoring. At the time the receivables are factored, 15% of the amount factored is charged to the client as commission and recognized as revenue in Victoria's books. Also, 10% of the receivables factored is withheld by Victoria as protection against sales returns or other adjustments. This amount is credited by Victoria to the Client's Retainer account. At the end of each month, payments are made by Victoria to its clients so that the balance in the Client's Retainer account is equal to 10% of unpaid factored receivables. Based on Victoria's doubtful accounts expense experience, an allowance for doubtful accounts of 5% of all factored receivables is to be established. Victoria makes adjusting entries at the end of each month. On January 3, 2021, Anthony Company factored its accounts receivable totaling P1,000,000. By January 31, P800,000 on these…
4. Brilliant Company purchases motorcycles from various countries and exports them to Europe. The entity has incurred the following costs during the current year: Cost of purchases based on vendor's invoices Trade discounts on purchases already 5,000,000 500,000 deducted from vendor's invoices Import duties Freight and insurance on purchases Other handling costs relating to imports Salaries of accounting department Brokerage commission paid to agents for arranging imports Sales commission paid to sales agents After-sales warranty costs Abnormal freight charge for express shipping Interest on inventory loan 400,000 1,000,000 100,000 600,000 200,000 300,000 250,000 12,000 200,000 What is the total cost of the purchase? a. 5,700,000 b. 6,100,000 c. 6,500,000 d. 6,700,000
26. On December 27, 20x1, XYZ received a sales order for a credit sale of goods with selling price of P45,000, with credit term on 5/10, n/30. The goods were shipped by XYZ on December 31, 20x1 and were received by the buyer on January 2, 20x2. He related shipping costs amounted to P4,500. The buyer XYZ collected the receivable on January 11, 20x2. If the shipping term is FOB destination, freight collect, the amount of cash received from the collection amounts to The correct answer is: 38,250
JBL undertook the following transactions for the month of Nov Purchased merchandise or $80,000 less 5-5 on terms 3/10 n/30. The entity paid freight for $2,500 and returned defective goods worth $7,000. JBL paid this account in full within the discount period. How much was the purchase discount?
Kindly provide the following requirements for problem 9-10.
For questions 24-25, use the following information; Posner Co. is a retail store operating in a state with a 7% retail sales tax. Posner made credit sales of $750,000 which are subject to 7% sales tax, 24. Total receivables were recorded for how much? 750,o00 25. Sales Tax Payable is recorded for how much? 49. o65 For questions 26 & 27, use the following information: ABD Company pays a weekly payroll of $285,000 that includes federal taxes withheld of $38,100, FICA taxes withheld of $23,670, and 401(k) withholdings of $27,000. (Although not required, preparing journal entries may help you answer questions 26 & 27) 26. What is the effect of assets from the transaction(s)? • TWO ANSWERS REQUIRED - (Increase of decrease and $ how much) 27. What is the effect of liabilities from the transaction(s)? TWO ANSWERS REQUIRED - (Increase or decrease and $ how much)
American Steel accepted returned merchandise purchased on account by Sky Builders for, $14,450, plus sales tax of $1,100. What is the journal entry for American Steel to record this transaction? Debit Sales, $15,550; Credit Accounts Receivable/Sky Builders, $15,550. O Debit Sales Returns and Allowances, $14,450, Sales Tax Payable, $1,100; Credit Accounts Receivable/Sky Builders, $15,550. O Debit Accounts Receivable/Sky Builders, $15,550; Credit Sales Returns and Allowances, $14,450, Sales Tax Payable, $1,100. Debit Accounts Receivable/Sky Builders, $15,550; Credit Sales, $15,550. %24
(5) The company "Z" displays in its accounting records the following costs for the goods purchased to reach safely its warehouses: Invoice value of goods 150.000€, discounts given on the invoice value of the purchase of 11.000 €, transport paid for the transport of goods from the warehouse of the supplier to the premises of the buyer 2.500 €, insurance premiums of goods 3.150 € were paid, packing costs for the transport 8.450 €, fees and customs clearance costs 7.780 €, commissions purchases 4.140 €, administrative expenses 5.550 €, salaries and wages 6.750 €, light-water-phone 3.150€, advertising-promotion costs 3.550€ and financial interest (debit) 1.485€. Requested: To determine the cost of purchase of the quantities purchased.
6. Celeste Company provided the following transactions, among others, for the current year. 1 Sold merchandise to XYZ Company for P500,000, terms 2/10, n/30. 2 the above account to Solid Finance under the following agreement June 1 Commission based on gross amount 5%. Hold back based on gross amount 25%. 9 Granted XYZ Company a credit allowance of P50,000 for damage in the shipment. 11 XYZ Company paid in full its account to Solid Finance. 15. Final settlement was made with Solid Finance. How much was the total amount received from the factoring? а. 500,000 b. 350,000 c. 416,000 d. 375,000
Prepare the entries to be made by the agency: at the date of acquisition at the date of payment, assuming the agency pays within the discount period. at the date of payment, assuming the agency pays beyond the discount period.
Please answer the question correctly. Thank you.
Delta Company sold goods to wholesalers on terms 2/15, net 30. The entity had no cash sales but 50% of the customers took advantage of the discount. The entity used the gross method of recording sales and accounts receivable. An analysis of the trade accounts receivables at year-end revealed the following: Collectible Age 0-15 days 16-30 days 31-60 days Over 60 days Amount 2,000,000 1,400,000 400,000 200,000 4,000,000 100% 95% 90% 50% What amount should be reported as allowance for sales discount at year-end?