Please Give me Answer with calculation High-Quality Jewelers uses the perpetual inventory system. OnMarch 3, High Quality sold merchandise for $50,000 to acustomer on account with terms 4/15, n/30. The cost of goodssold was $20,000. On March 18, High Quality received paymentfrom the customer.Calculate the amount of gross profit.A. $28,000B. $30,000C. $48,000D. $20,000

Step 1:Term 4/15 ,n/30 means if payment will receive within 15 days then discount rate is 4%, other…

Answered: High-Quality Jewelers uses the…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 37E: Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following...

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Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following transactions: a. Made credit sales of $825,000. The cost of the merchandise sold was $560,000. b. Collected accounts receivable in the amount of $752,600. c. Purchased goods on credit in the amount of $574,300. d. Paid accounts payable in the amount of $536,200. Required: Prepare the journal entries necessary to record the transactions. Indicate whether each transaction increased cash, decreased cash, or had no effect on cash.
A seller sells $800 worth of goods on credit to a customer, with a cost to the seller of $300. Shipping charges are $100. The terms of the sale are 2/10, n/30, FOB Destination. What, if any, journal entry or entries will the seller record for these transactions?
Prepare journal entries for the following sales and cash receipts transactions. (a) Merchandise is sold on account for 300 plus 3% sales tax, with 2/10, n/30 cash discount terms. (b) Part of the merchandise sold in transaction (a) for 70 plus sales tax is returned for credit. (c) The balance on account for the merchandise sold in transaction (a) is paid in cash within the discount period.
Sunrise Flowers sells flowers to a customer on credit for $130 on October 18, with a cost of sale to Sunrise of $50. What entry to recognize this sale is required if Sunrise Flowers uses a perpetual inventory system?
Toby Company had the following sales transactions for March: Mar. 6Sold merchandise on account to Osbourne, Inc., invoice no. 1128, 563.17. 14Sold merchandise on account to Ortiz Company, invoice no. 1129, 823.50. 20Sold merchandise on account to Bailey Corporation, invoice no. 1130, 2,350.98. 24Sold merchandise on account to Shannon Corporation, invoice no. 1131, 1,547.07. Assume that Toby Company had beginning balances on March 1 of 3,569.80 (Sales 411) and 2,450.39 (Accounts Receivable 113). Record the sales of merchandise on account in the sales journal (page 24) and then post to the general ledger.
Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc. A. On October 3, Sewing Masters Inc. purchases 800 yards of fabric (Fabric Inventory) at $9.00 per yard from a supplier, on credit. Terms of the purchase are 1/5, n/40 from the invoice date of October 3. B. On October 8, Sewing Masters Inc. purchases 300 more yards of fabric from the same supplier at an increased price of $9.25 per yard, on credit. Terms of the purchase are 5/10, n/20 from the invoice date of October 8. C. On October 18, Sewing Masters pays cash for the amount due to the fabric supplier from the October 8 transaction. D. On October 23, Sewing Masters pays cash for the amount due to the fabric supplier from the October 3 transaction.
Record journal entries for the following transactions of Barrera Suppliers. A. May 12: Sold 32 deluxe hammers at $195 each to a customer, credit terms 10/10, n/45, invoice date May 12; the deluxe hammers cost Barrera Suppliers $88 each. B. May 15: Customer returned 6 hammers for a full refund. The merchandise was in sellable condition at the original cost. C. May 20: Customer found 2 defective hammers but kept the merchandise for an allowance of $200. D. May 22: Customer paid their account in full with cash.
Inventory Costing Methods Andersons Department Store has the following data for inventory, purchases, and sales of merchandise for December. Andersons uses a perpetual inventory system. All purchases and sales were for cash. Required: 1. Compute cost of goods sold and the cost of ending inventory using FIFO. 2. Compute cost of goods sold and the cost of ending inventory using LIFO. 3. Compute cost of goods sold and the cost of ending inventory using the average cost method. ( Note: Use four decimal places for per-unit calculations.) 4. Prepare the journal entries to record these transactions assuming Anderson chooses to use the FIFO method. 5. CONCEPTUAL CONNECTION Which method would result in the lowest amount paid for taxes?
What is the amount of gross profit on this accounting question?
EcoMart Merchandising uses the perpetual inventory system. EcoMart Merchandising sold fair trade merchandise for $1500, with credit terms n/30, invoice dated October, 1. The cost of merchandise is $900. The entries to book this transaction is as follows: OA. Dr. Accounts Receivable 1,500; Cr. Sales 1,500 Dr. Merchandise Inventory 1,500; Cr. Cost of Goods Sold 1,500 OB. Dr. Cash 1.500: Cr. Sales 1.500 Dr. Merchandise Inventory 900; Cr. Cost of Goods Sold 900 Oc. Dr. Sales 900; Cr. Accounts Receivable 900 Dr. Cost of Goods Sold 1,500; Cr. Merchandise Inventory 1,500 OD. Dr. Accounts Receivable 1,500; Cr. Sales 1,500 Dr. Cost of Goods Sold 900; Cr. Merchandise Inventory 900
Landon Jewelers uses the perpetual inventory system. On April 2, Landon sold merchandise with a cost of $4,500 for $9,000 to a customer on account with terms of 1/15, n/30. The journal entry to record the cost of goods sold would be: A. Cost of Goods Sold 4,500 Accounts Receivable 4,500 B. Cost of Goods Sold 4,500 Merchandise Inventory 4,500 C. Sales Revenue 4,500 Cost of Goods Sold 4,500 D. Merchandise Inventory 4,500 Cost of Goods Sold 4,500
Forever Jewelers uses the perpetual inventory system. On April 2, Forever sold merchandise with a cost of $3,500 for $7,000 to a customer on account with terms of 4/15, n/30. Which of the following journal entries correctly records the sales revenue? A. Sales Revenue 6,720 Accounts Receivable 6,720 B. Accounts Receivable 6,720 Sales Revenue 6,720 C. Accounts Receivable 3,500 Sales Revenue 3,500 D. Sales Revenue 6,720 Cost of Goods Sold

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