E6-3 (Algo) Reporting Net Sales with Credit Sales, Sales Discounts, Sales Returns, and Credit Card Sales LO6-1 Bennett Retailers had the following transactions in November and December: November 20 Sold 20 items of merchandise to Customer B at an invoice price of $5,500 (total); terms 3/10, n/30. November 25 Sold two items of merchandise to Customer C, who charged the $600 (total) sales price on her Visa credit card. Visa charges Bennett Retailers a 3 percent credit card fee. November 28 Sold 10 identical items of merchandise to Customer D at an invoice price of $9,800 (total); terms 3/10, 1/30. November 29 Customer D returned one of the items purchased on the 28th; the item was defective and credit was given to the customer. December 6 Customer D paid the account balance in full. December 20 Customer B paid the November 20 invoice in full. Required: Compute net sales for the two months ended December 31. Note: Do not round your intermediate calculations. Round your answer to the nearest whole dollar amount. Net sales

E6-3 (Algo) Reporting Net Sales with Credit Sales, Sales Discounts, Sales Returns, and Credit Card Sales LO6-1 Bennett Retailers had the following transactions in November and December: November 20 Sold 20 items of merchandise to Customer B at an invoice price of $5,500 (total); terms 3/10, n/30. November 25 Sold two items of merchandise to Customer C, who charged the $600 (total) sales price on her Visa credit card. Visa charges Bennett Retailers a 3 percent credit card fee. November 28 Sold 10 identical items of merchandise to Customer D at an invoice price of $9,800 (total); terms 3/10, 1/30. November 29 Customer D returned one of the items purchased on the 28th; the item was defective and credit was given to the customer. December 6 Customer D paid the account balance in full. December 20 Customer B paid the November 20 invoice in full. Required: Compute net sales for the two months ended December 31. Note: Do not round your intermediate calculations. Round your answer to the nearest whole dollar amount. Net sales

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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Hoyt Company provides this information for the month of November, 2022: sales on credit $170,000; cash sales $70,000; sales discounts $2,000; and sales returns and allowances $9,000. Prepare the sales revenues section of the income statement based on this information. Salarles and Wages Expense Less Sales Discounts Sales Returns and Allowances Net Sales HOYT COMPANY Income Statement (Partial) November 30, 2022 $ 2,000 i 9,000 i $ $ 240,000 11,000 i 229,000
E6-3 (Algo) Reporting Net Sales with Credit Sales, Sales Discounts, Sales Returns, and Credit Card Sales LO6-1 Bennett Retailers had the following transactions in November and December: November 20 November 25 November 28 November 29 December 6 December 20 Required: Sold 20 items of merchandise to Customer B at an invoice price of $6,000 (total); terms 3/10, n/30. Sold two items of merchandise to Customer C, who charged the $600 (total) sales price on her Visa credit card. Visa charges Bennett Retailers a 1 percent credit card fee. Sold 10 identical items of merchandise to Customer D at an invoice price of $9,400 (total); terms 3/10, n/30. Customer D returned one of the items purchased on the 28th; the item was defective and credit was given to the customer. Customer D paid the account balance in full. Customer B paid the November 20 invoice in full. Compute net sales for the two months ended December 31. Note: Do not round your intermediate calculations. Round your answer to the…
nd K The following transactions were selected from among those completed by Bennett Retailers in November and December: Sold 20 items of merchandise to Customer B at an invoice price of $5,500 (total); terms 3/10, n/30. Sold two items of merchandise to Customer C, who charged the $400 (total) sales price on her Visa credit card. Visa charges Bennett Retailers a 2 percent credit card fee. Sold 10 identical items of merchandise to Customer D at an invoice price of $9,000 (total); terms 3/10, n/30. November 29 Customer D returned one of the items purchased on the 28th; the item was defective and credit was given to the customer. December 6. Customer D paid the account balance in full. December 201 Customer B paid in full for the invoice of November 20. November 201 November 25 November 28 Required: Assume that Sales Returns and Allowances, Sales Discounts, and Credit Card Discounts are treated as contra-revenues; compute net sales for the two months ended December 31. Note: Do not round…
Mayfair Co. allows select customers to make purchases on credit. Its other customers can use either of two credit cards: Zisa or Access. Zisa deducts a 5.5% service charge for sales on its credit card. Access deducts a 4.5% service charge for sales on its card. Mayfair completes the following transactions in June. June 4 Sold $700 of merchandise on credit (that had cost $350) to Natara Morris. 5 Sold $6,700 of merchandise (that had cost $3,350) to customers who used their Zisa cards. 6 Sold $5,656 of merchandise (that had cost $2,828) to customers who used their Access cards. 8 Sold $4,680 of merchandise (that had cost $2,340) to customers who used their Access cards. 13 Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $606 balance in McKee’s account stemmed from a credit sale in October of last year. 18 Received Morris’s check in full payment for the purchase of June 4. Required:Prepare journal…
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Presented below is information related to Lathorp Corp., which sells merchandise with terms 2/10, net 60. Lathorp records its sales and receivables net. Oct-1 Lathorp Corp. sold to Pittman Co. merchandise having a sales price of $15,000. 9 Specific accounts receivable of $11,000 (gross) are pledged to Aladin Credit Corp. as security for a loan of $7,000 at a finance charge of 7% of the amount of the loan. The finance company will make the collections. (All the accounts receivable are past the discount period.) Nov- Lathorp Corp. factors receivables with a carrying amount of $32,000 to Anderson 15 Inc. for $27,000 on a with recourse basis. The recourse provision has a fair value of $800. This transaction should be recorded as a sale. Dec- Pittman Co.. notifies Lathorp that it is bankrupt and will pay only 15% of its account. 31 Give the entry to write off the uncollectible balance using the allowance method. (Note: First record the increase in the receivable on Oct 11 when the discount…
Journalize the following transactions for Iron Sports Corp.: March 1 Iron Sports Corp. sold $64,200 of merchandise on account with credit terms of 2/10, n/30. Cost of merchandise sold was $29,900. March 8 Iron Sports Corp. received $5,000 sales return on damaged goods from the customer. The cost of merchandise returned was $2,400. March 15 Iron Sports Corp. received payment from the customer on the amount due, less the return and discount. Date March 1 March 1 March 8 March 8 March 15 Description + + + ◆ + M + Debit Credit
36.Willy Company sold on credit merchandise having a list price of P200,000 with the following terms: trade discount of 10% and 5%; cash discount of 3% if the account is paid within 10 days from the invoice date; full amount is due in 30 days. If Willy Company uses the gross price method, what are the accounts and amounts debited upon collection within the discount period? a. Cash, 194,000; Sales Discounts, 6,000 b. Cash 165,870 c. Cash, 165,870; Sales Discounts, 5,130 d. Cash, 171,000; Sales Discounts Forfeited, 5,130
Mayfair Co. allows select customers to make purchases on credit. Its other customers can use either of two credit cards: Zisa or Access. Zisa deducts a 4.5% service charge for sales on its credit card. Access deducts a 3.5% service charge for sales on its card. Mayfair completes the following transactions in June. June 4 Sold $500 of merchandise on credit (that had cost $250) to Natara Morris. 5 Sold $6,800 of merchandise (that had cost $3,400) to customers who used their Zisa cards. 6 Sold $5,616 of merchandise (that had cost $2,808) to customers who used their Access cards. 8 Sold $4,890 of merchandise (that had cost $2,445) to customers who used their Access cards. 13 Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $395 balance in McKee’s account stemmed from a credit sale in October of last year. 18 Received Morris’s check in full payment for the purchase of June 4. Required:Prepare journal…
On March 2. Metlock Company sold $936,300 of merchandise to Ivanhoe Company on account, terms 2/10, n/30. The cost of the merchandise sold was $571.70o. On March 6, Ivanhoe Company returned $110,600 of the merchandise purchased on March 2. The cost of the merchandise returned was $62,200. On March 12, Metlock Company received the balance due from Ivanhoe Company. Debit Credit Date Account Titles and Explanation ck if you would like to Show Work for this question: Open Show Work Versia I Q 2000-2021 John Wiley & Sons, Inc. All Rights Reserved. A Division of John Wiley & Sons, Inc. %23 3/1 hp 米 fe 4+ pr IOI 144 & 24 4. 6. L. 8. { E R T. Y U D F G H K C alt ctrl V Σ 3.
Prepare the journal entries for the Brady Corporation in the general journal provided. Oct 1 Sold merchandise to Hannah Company, $40,000, terms FOB Shipping Point, 1/10, n/30. The cost of merchandise sold was $27,000. 3 Sold merchandise for $12,000 plus 5% sales tax to retail cash customers. The cost of the merchandise sold was $8,000. The goods were picked up by the customers. 6 Sold merchandise to Welker Industries, $35,000, terms FOB Destination Point, 2/10, n/eom. The cost of the merchandise sold was $23,000. 8 Paid the freight invoice of $450 related to the Welker Industries sale. 11 Received payment from Hannah Company for the October 1 invoice. 16 Received payment from Welker Industries for the October 6 sale. 19 Paid the sales tax to the government…
The following are selected transactions of Molina Company. Molina sells in large quantities to other companies and also sells its product in a small retail outlet. March 1 6 Sold merchandise on account to Dodson Company for $5,000, terms 2/10, n/30. Dodson Company returned merchandise with a sales price of $500 to Molina. Molina collected the amount due from Dodson Company from the March 1 sale. 15 Molina sold merchandise for $400 in its retail outlet. The customer used his Molina credit card. 31 Molina added 1.5% monthly interest to the customer's credit card balance. Prepare journal entries for the transactions above. (Ignore cost of goods sold entries and explanations.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation March 1 く Accounts Receivable Sales Revenue March 3 く Sales Returns and Allowances Accounts Receivable Debit Credit