FDN Trading uses periodic inventory system. On November 15, 2021, FDN sold merchandise to Rossi Company for P116,000 on terms 3/10, 2/20, n/30. On November 18, 2021, Rossi returned to FDN goods worth P8,700 due to wrong specification. On November 25, 2021, Rossi made partial payment of P25,000. On December 4, 2021, Rossi paid its account in full. How much should FDN Trading credit to Sales Revenue on November 15?

FDN Trading uses periodic inventory system. On November 15, 2021, FDN sold merchandise to Rossi Company for P116,000 on terms 3/10, 2/20, n/30. On November 18, 2021, Rossi returned to FDN goods worth P8,700 due to wrong specification. On November 25, 2021, Rossi made partial payment of P25,000. On December 4, 2021, Rossi paid its account in full. How much should FDN Trading credit to Sales Revenue on November 15?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 6E: Goods in Transit Gravais Company made two purchases on December 29, 2019. One purchase for 3,000 was...

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Goods in Transit Gravais Company made two purchases on December 29, 2019. One purchase for 3,000 was shipped FOB destination, and the second for 4,000 was shipped FOB shipping point. Neither purchase had been received nor paid for on December 31, 2019. Required: Which of these purchases, if either, does Gravais include in inventory on December 31, 2019? What is the cost?
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A business A uses periodic inventory system. On Nov 15, 2021, the business A sold merchandise to business B for $149,000 on terms 3/10, 2/20, n/30. On Nov 18, 2021, business B returned to business A goods worth $8,700 due to wrong specification. On Nov 15, 2021, business B made partial payment of $39,000. On Dec 4, 2021, business B paid its account in full. How much should business A credit to Sales Revenue on Nov 15?
On June 16, 2021, Emily Corporation sold merchandise to Franz Company for P6,000, terms 2/10, n/30. Shipping costs were P600. Franz Company received the goods and Emily Corporation's invoice on June 17. On June 24, Franz Company sent the payment to Emily Corporation, which Emily Corporation received on June 25. Both Emily Corporation and Franz Company use the periodic inventory system. (Disregard effects of VAT. Use the account titles "Freight In" and "Freight Out" for transportation costs.)A. Shipping terms are FOB Shipping Point, freight collect. Franz Company paid the shipping costs on June 17 and remitted payment on June 24. Question 1. 1. Prepare the journal entry for Emily Corporation to record the sale.
On June 16, 2021, Emily Corporation sold merchandise to Franz Company for P6,000, terms 2/10, n/30. Shipping costs were P600. Franz Company received the goods and Emily Corporation's invoice on June 17. On June 24, Franz Company sent the payment to Emily Corporation, which Emily Corporation received on June 25. Both Emily Corporation and Franz Company use the periodic inventory system. (Disregard effects of VAT. Use the account titles "Freight In" and "Freight Out" for transportation costs.)A. Shipping terms are FOB Shipping Point, freight collect. Franz Company paid the shipping costs on June 17 and remitted payment on June 24. Question. Prepare the entry for Emily Corporation to record the cash receipt.
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Eastman Corporation sells merchandise with a list price of $13,000 on February 1, 2019, with terms of 1/10, n/30. On February 10, 2019, payment was received on merchandise originally billed for $7,500, and the balance due was received on March 1, 2019. Required: 1. Prepare the journal entries to record the preceding information assuming that Eastman records accounts receivable and sales at (a) the gross price and (b) the net price. 2. Next Level What implied annual interest rate is Eastman’s customer incurring by failing to take the cash (sales) discount? (Assume a 365-day year.) 3. Next Level Which method—recording accounts receivable at the gross price or net price—is theoretically superior? Why?
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