CashAccount NameSales RevenueDeferred Revenue-Merchandise CreditTo record the sale of merchandiseCost of Goods SoldInventoryTo record the cost of sale of merchandiseAccount NameDeferred Revenue-Merchandise CreditSales Revenue-Merchandise CreditTo receognize revenue.✓Account NameDebitAccounts ReceivableTo receognize revenue.400,000160,00000Debitc. Record a summary entry to recognize revenue (if any) during the 5-day merchandise credit redemption period, assuming that 35% of the credits are redeemed.016,1230DebitCredit0✔383,877 ✔16,123✔000160,000 ✓d. Record a summary entry to recognize revenue (if any) at the conclusion of the 5-day merchandise credit redemption period, assuming that no credits are redeemed.Credit0✔16,123 ✔Credit0x16,800 * Identifying and Recording Customer Option for Additional MerchandiseA large clothing retailer chain, Koll's, offers a sales incentive program where customers receive direct credit toward future purchases based upon the dollar amount of purchases today. For every $50 spenttoday, the customer will earn a $6 credit to be used at Koll's in two weeks. The credit expires 5 days after it becomes active. Not all customers will redeem the credit in the 5-day window of time. Basedupon historical trends, Koll's estimates that 35% of the credits will be redeemed.a. Determine how many performance obligations are included in a sales transaction during the sales incentive program.Two performance obligations ◆b. Assuming that Koll's sold $400,000 of merchandise (cost of $160,000) during the first day of the sales incentive period and 8,000, $6 credits were given, record the journal entry(ies) to record salesrevenue. Assume all sales were cash sales.Note: Carry all decimals in calculations; round the final answer to the nearest dollar.PerformanceObligationsMerchandiseCustomer option-merchandise credit$$TransactionPriceas Stated400,000 $0✔400,000 $StandaloneSellingPrice400,000 $16,800✔416,800 $Total AllocatedTransaction Price(rounded)383,877 ✔16,123 ✔400,000

Name: CashAccount NameSales RevenueDeferred Revenue-Merchandise CreditTo re
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Description: CashAccount NameSales RevenueDeferred Revenue-Merchandise CreditTo record the sale of merchandiseCost of Goods SoldInventoryTo record the cost of sale of merchandiseAccount NameDeferred Revenue-Merchandise CreditSales Revenue-Merchandise CreditTo re

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Business

Accounting

Cash Account Name Sales Revenue Deferred Revenue-Merchandise Credit To record the sale of merchandise Cost of Goods Sold Inventory To record the cost of sale of merchandise v Account Name Deferred Revenue-Merchandise Credit Sales Revenue-Merchandise Credit To receognize revenue. v ✓ ✓ Debit ✓ 400,000 0 0 160,000 0 Credit c. Record a summary entry to recognize revenue (if any) during the 5-day merchandise credit redemption period, assuming that 35% of the credits are redeemed. Debit 16,123 0 0 383,877 ✔ 16,123 0✔ 160,000 ✓ Credit 0✔ 16,123 ✔

Cash Account Name Sales Revenue Deferred Revenue-Merchandise Credit To record the sale of merchandise Cost of Goods Sold Inventory To record the cost of sale of merchandise v Account Name Deferred Revenue-Merchandise Credit Sales Revenue-Merchandise Credit To receognize revenue. v ✓ ✓ Debit ✓ 400,000 0 0 160,000 0 Credit c. Record a summary entry to recognize revenue (if any) during the 5-day merchandise credit redemption period, assuming that 35% of the credits are redeemed. Debit 16,123 0 0 383,877 ✔ 16,123 0✔ 160,000 ✓ Credit 0✔ 16,123 ✔

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Journalize the following merchandise transactions: a. Sold merchandise on account, $94,800 with terms 2/10, n/30. The cost of the merchandise sold was $56,900. b. Received payment less the discount. c. Issued a $500 credit memo for damaged merchandise. The customer agreed to keep the merchandise.
Compute the amount to be paid for each of the four separate invoices assuming that all invoices are paid within the discount period. Merchandise Terms Payment (gross) a. $ 8,800 2/10, n/60 b. $ 25,700 1/15, n/90 C. $ 82,600 1/10, n/30 d. $ 19,500 3/15, n/45
1. Merchandise with a list price of $7,425 is purchased on account, terms FOB shipping point, n/30. The seller prepaid transportation costs of $300. Prior to payment, $1,000 of the merchandise is returned. The correct amount is paid within the discount period.(net method) Record the foregoing transactions of the buyer in the sequence indicated below. a) Purchased the merchandise b) Recorded receipt of the credit memorandum for merchandise returned. c) Paid the amount owed.
ONLY TYPED SOLUTION
Determine the amount to be paid in full settlement of each of the following invoices, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Merchandise Freight Paid by Seller Returns and Allowances a. $21,800 - FOB shipping point, 1/10, n/30 $1,100 b. 12,000 $500 FOB shipping point, 1/10, n/30 1,400 c. 6,500 - FOB destination, 1/10, n/30 600 d. 2,900 100 FOB shipping point, 1/10, n/30 400 e. 3,600 - FOB destination, 1/10, n/30 - a. $fill in the blank 1 b. $fill in the blank 2 c. $fill in the blank 3 d. $fill in the blank 4 e. $fill in the blank 5
How do you make a general journal entry for these sales transactions?
Journalizing Sales Transactions Enter the following transactions in a sales journal. Use a 6% sales tax rate. May 1 Sold merchandise on account to J. Adams, $1,800, plus sales tax. Sale No. 488. 4 Sold merchandise on account to B. Clark, $1,800, plus sales tax. Sale No. 489. 8 Sold merchandise on account to A. Duck, $1,500, plus sales tax. Sale No. 490. 11 Sold merchandise on account to E. Hill, $1,950, plus sales tax. Sale No. 491.
Hh1. calculate net sales, cost of goods sold and gross profit from sales
Purchases Transactions Barans Company purchased merchandise on account from Springhill Company for $12,400, terms 1/10, n/30. Barans returned merchandise with an invoice amount of $1,900 and received full credit. a. If Barans Company pays the invoice within the discount period, what is the amount of cash required for the payment? If required, round the answer to the nearest dollar.
prepare a journal entry to record transaction Buyer buys merchandise for 3,000, credit terms 2/10 n/30. Merchandise cost 1800
Journalize the following merchandise transactions:c. Issued a credit memo to Wilson Company for returned merchandise that was sold for $4,000, terms n/30. The cost of the merchandise returned was $2,275