E7.6 (LO 2) (Recording Sales Transactions) Presentedbelow is information from Perez Computers Incorporated.Sold $20,000 of computers to Robertson Companywith terms 3/15, n/60. Perez uses thegross method to reobrd cash discounts. Perezestimates allowances of $1,30o will be honoredon these sales.JulyPerez received payment from Robertson for the fullamount owed from the July transactions.10Sold $200,000 in computers and peripherals to TheClark Store with terms of 2/10, n/30.1730The Clark Store paid Perez for its purchase of July17.InstructionsPrepare the necessary journal entries for Perez Computers.

Definition: Journal entry: Journal entry is a set of economic events which can be measured in…

Answered: E7.6 (LO 2) (Recording 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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On August 5, John's furniture makes a purchase of $3200 for chairs from a wholesaler. The purchase arrives on September 2 with terms 2/10 ROG. Returns due to damages are $425, and shipping charges are $125 (not included in the purchase price). John's would like to take advantage of the discount with a partial payment of $1800. Answers the questions below. a. What is the discount date? b. How much credit will John's receive for the partial payment? c. What is the remaining amount still due on the invoice? d. By what date does the remaining balance have to be paid?
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16.On October 17, Conrad Beauty Supplies bought $42,000 of goods with terms of 1/10, n/30. One-half of the bill was paid on October 24, and the rest of the bill was paid on October 31. Assume that the seller has agreed to grant discounts on partial payments.Required: Prepare journal entries for October 24 using the: 1. Gross Method2. Net Method
Choose the correct answer: 12. On November 10 of the current year, Al-Kamil Co. sold carpet to a customer for OR 8,000 with credit terms 2/10, n/30. Al-Kamil uses the gross method of accounting for cash discounts. What is the correct entry for Al-Kamil on November 10? Select one: a. Accounts receivable 8,000 Sales 8,000 b. Accounts receivable 8,000 cash discounts 160 Sales 7,840 c. Accounts receivable 7,840 cash discounts 160 Sales 8,000 d. Accounts receivable 7,840 Sales…
10. Alexis Company has total credit sales proceeds of $4,515 in the check-out till. If the proceeds include sale tax of 8%, show the journal to record the sale.
Described below are certain transactions of XYZ Company:Feb 2 The Company purchased goods from ABC Corp for P150,000, 2/10, n/30. The Company records purchases and accounts payable at net amounts after cash discounts. The invoice was paid on February 25.Apr 1 The Company purchased a truck for P1,200,000 from Bye Motors Corp, paying P120,000 in cash and signing a one-year, 12% note for the balance of the purchase price.May 1 The Company borrowed P2,400,000 from Philippine Bank by signing a P2,760,000 noninterest-bearing note due one year from May 1.Aug 1 The Company’s board of directors declared a P900,000 cash dividend payable on September 10 to shareholders of record on August 31.Required:1.Prepare all journal entries necessary to record the above transactions.2.Prepare any adjusting entries concerning interest that are necessary to present fair financial statements, assuming that XYZ’s financial year ends on December 31 and that no adjusting entries relative to transactions above…
. With regard to accounts payable: Explain the rationale of taking a cash discount, such as 4/8, n/30. Assume a purchase of $1,000,000. include computations Additionally, determine the approximate balance of accounts payable, if a company stretches its payables to 40 days and on average, they make purchases of $1,000,000 per day from their vendors.
am. 134.
A company makes a credit sale of $1,000 on June 13 according to the payment terms 5/10, n/30. On June 16, there is a return of $100. The buyer makes the payment for the remaining amount by utilizing the discount. What should be the amount to be paid? O A) $855 B) $900 C) $950 D) $810 E) $600
July 1 Sold $21,600 of computers to Robertson Company with terms 3/15, n/60. Windsor uses the gross method to record cash discounts. Windsor estimates allowances of $1,404 will be honored on these sales. 10 Windsor received payment from Robertson for the full amount owed from the July transactions. 17 Sold $216,000 in computers and peripherals to The Clark Store with terms of 2/10, n/30. 30 The Clark Store paid Windsor for its purchase of July 17. Prepare the necessary journal entries for Windsor Computers. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation (To record sales revenue.) (To record allowance for sales returns.) Debit Credit
3. On March 3, Greentree Appliances sells $480,000 of its receivables to Naomi Factors, Inc. Naomi Factors assesses a finance charge of 6% of the amount of receivables sold. Prepare the entry on Greentree Appliance's books to record the sale of the receivables. List two advantages to Greentree to using a factor. Date Account Titles and Explanation Ref Debit Credit EXTRA CREDIT: List two advantages to Greentree due to using a factor.
Record these transactions in general journal ledger: Dec 1: Purchased equipment costing $15,608 by taking out a 4-month installment note with First Bank. Dec 4: Accepted a sales return from Eastern for an item having an original gross sales price of $6,000. The original sale to Eastern occurred in November with terms 2/15, n/30. Dec 5: Specifically wrote off the receivable balance owed by Baker as uncollectible. Dec 7: Returned defective inventory with a gross cost of $4,000 back to Hunt Corp. Dec 14: Wilson returned an item originally purchased on Dec 12 with a gross sales price of $7,000. Dec 14: Returned inventory with a gross cost of $2,000 back to Nelson Industries. Dec 18: Bought office supplies on account for $9,000 from Staples Inc. (open a new Accounts Payable in the subsidiary ledger--Vendor # 210-30). Invoice # is OM1218. Staples Inc.’s terms are n/30 Dec 19: Received the December utilities bill for the amount of $15,000. The bill will be paid in January of next year.…

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