If you give me wrong answer, I will give you UN helpful rate. In the Month of March, Digby received orders of 152 units at a priceof $15.00 for their product Dug, and in April receives an order for38 units of their product Dug at $15.00. Digby uses the accrualmethod of accounting and offers 30-day credit terms. Digbydelivers O units in March, 152 units in April, and 38 units in May.They received payment for 152 units in April and payment for 38units in May.a. How much revenue is recognized on the March incomestatement from this order?b. How much is in the April income statement?

Step 1: Introduction to the Receivable of OrderReceiving an order indicates that a client has…

Answered: In the Month of March, Digby received…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 14EB: Earthies Shoes has 55% of its sales in cash and the remainder on credit. Of the credit sales, 70% is...

See similar textbooks

Similar questions

On July 8, Azure Corporation enters into an agreement with one of its customers, Madsen, Inc. to provide them with 4,500 units at a cost of $500 per unit. Madsen sends a cash deposit of $225,000 on the same day. Azure sends the first 2,700 units on August 31, with an invoice for $675,000 due September 15. The remaining 1,800 units are delivered on October 15, along with an invoice for the remaining amount of the total $2,250,000 purchase price, due October 31. Madsen made all payments on the invoice due dates. Assume that Azure Corporation had no uncertainties about its own ability to meet the terms of the contract or about Madsen, Inc.'s ability and willingness to pay. Prepare the journal entries to record the events (leaving out the accounting for Azure's costs). Date July 8 August 31 September 15 October 15 October 31 Account To record the deposit. To record initial delivery of units. To collect cash on account. To record delivery of remaining units. To collect cash on account. <<…
In June 2017, a single commercial customer orders 60 M612 storage units, priced at $ 9,600 each (with a cost per unit of $ 6,600). Pearl provides customers ordering more than 20 M612 units during a 12-month period a 4% volume discount on their entire order. On July 19, 2017, Pearl delivered all 60 M612 units. Pearl received payments for the units on August 5, 2017. Prepare the journal entries for Pearl on July 19, 2017 and August 5, 2017. Assume the company records sales transaction net. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Drainee purchases direct materials each month. Its payment history shows that 65% is paid in the month of purchase with the remaining balance paid the month after purchase. Prepare a cash payment schedule for January using this data: in December through February, it purchased $22,000, $25,000, and $23,000 respectively.
Copley Paper Supply expects to have the sales and expenses shown for May, June,and July. The company expects to receive 70% of the sales in the month of the sale,25% thefollowing month, and 5% to be uncollectible. The company’s policy to paymanufacturing cost includes 65% in the month incurred and 35% the followingmonth. All other costs are paid in the month incurred. In addition, the company mustpay an income tax payment in July, which the company estimates will be 10% of totalsales for the quarter. The company will also receive interest revenue of $1,200 inJune. Prepare the cash budget for the three months if the cash balance as of May 1, 2015,totaled $102,000. The company requires a $100,000 minimum cash balance.
Copley Paper Supply expects to have the sales and expenses shown for May, June, and July. The company expects to receive 70% of the sales in the month of the sale, 25% thefollowing month, and 5% to be uncollectible. The company's policy to pay manufacturing cost includes 65% in the month incurred and 35% the following month. All other costs are paid in the month incurred. In addition, the company must pay an income tax payment in July, which the company estimates will be 10% of total sales for the quarter. The company will also receive interest revenue of $1,200 in June. May $102,500 $100,000 $105,200 $107,100 Аpril June July Sales Manufacturing costs 30,000 34,500 38,000 36,500 Selling expenses Administrative expenses 14,900 14,900 22,500 15,000 20,000 20,000 22,500 25,000 Prepare the cash budget for the three months if the cash balance as of May 1, 2015, totaled $102,000. The company requires a $100,000 minimum cash balance.
In December, the Mutual Publishing Company ships 20 sets of books to a book dealer on consignment. The consignor maintains a cost accounting system and perpetual inventories; the cost of manufacturing each set is P3,000.00. At the end of December, the dealer reports the sale of 8 sets at P5,000.00 each and remits sales proceeds less 15% representing commissions and all expenses paid by the consignee. Freight paid by the consignee on the receipt of the sets is P2,500. Delivery and installation expense for the units sold was P1,200. The consignee returned 3 defective set of books to the consignor and paid freight of P1,000. How much is the cash remittance?How much is the net income related with the consignment sales?
In December, the Win Publishing Company ships 20 sets of books to a book dealer on consignment. The consignor maintains a cost accounting system and perpetual inventories; the cost of manufacturing each set is P3,000. At the end of December, the dealer reports the sale of 8 sets at P5,000 each and remits sales proceeds less 15% representing commissions and all expenses paid by the consignee. Freight paid by the consignee on the receipt of the sets is 1,500. Delivery and installation expense for the units sold was P1,200. The consignee returned 1 defective set of books to the consignor and paid freight of P1,000. How much is the cash remittance? how much is the net income related with the consignment sales?
A company buys and sells physical goods to individuals and other companies. March 4 orders the company 50 products from a subcontractor. The invoice arrives on March 10 and is onSEK 50,000 without VAT (25%) and the payment terms are 30 days net.The company places a 100% mark-up on the net purchase price when the sales price is determined. The last April, 40 of the products are sold. In connection with the above-mentioned event, the company's a) How big is the company's cost in connection with the above mentioned event? b) How large is the company's revenue in connection with the above-mentioned event?
Lakeside Components wishes to purchase parts in one month for sale in the next. On June 1, the company has 9,000 parts in stock, although sales for June are estimated to total 11,400 parts. Total sales of parts are expected to be 8,800 in July and 13,900 in August. Parts are purchased at a wholesale price of $15. The supplier has a financing arrangement by which Lakeside Components pays 70 percent of the purchase price in the month when the parts are delivered and 30 percent in the following month. Lakeside purchased 15,000 parts in May. Required:a. Estimate purchases (in units) for June and July.b. Estimate the cash required to make purchases in June and July. Required A Required B Estimate purchases (in units) for June and July. June July Merchandise to be purchased in units Month of Payment Total June not attempted July
All purchases of ANGEL Merchandising are made on account, Eighty percent of the purchases are paid on the month of purchase and the remaining are paid the following month. ANGEL avails itself of the 5% discount in full provided by the suppliers in all purchases Sixty percent of the sales of ANGEL Merchandise are made on account. Eighty percent of the sales on account are made on the month of sale when the customers are granted 2% discount. Eighteen percent of the credit sales are collected the following month, but customers pay beyond the discount period of 10 days from the date of sale. The remaining sales on acoount is considered uncollectible. The following data is provided by the company as follows: Sales Purchases Operating Expenses December 2018 (actual) 250 000 160 000 45 000 January 2019 (estimated) 300 000 200 000 60 000 February 2019 (estimated) 380 000 240 000 70 000 March 2019 (estimated) 450 000 380 000 95 000 The cash balance of…
Patty Corp., a public company, delivers 3,200 units to a customer on 1 April for $80/unit. Patty Corp. has a return policy where they allow any customer to return any unused product within 45 days and receive a full refund. The cost of each product is $64. Based on historical experience Patty estimates that customer will return 2% of the units sold. Patty expects to be able to resell any returned goods. Assume that 50 products are returned on 2 May. No additional units are returned by 15 May (the end of the return period). Required: Prepare the journal entries related to the sale of products. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 2 3 4 5 6 Prepare the journal entry required on 1 April to record the sale: Note: Enter debits before credits. Date 1 April General Journal Debit Credit
On June 1, DD Company shipped twenty five DVD to BB View Store on consignment. The DVD is to be sold at an advertised price of P200 per item. The cost of each DVD to the consignor is P100. The consignor paid P75 to ship the merchandise. Commission is to be 25% of sales price. During the month, two DVD were returned. On June 30, BB View Store remitted the amount due to consignor after deducting commission of P400. The cost of inventory on consignment amounted to: The net income of the consignor for the month is: The cost of inventory on consignment amounted to:

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

Excel Applications for Accounting Principles

Accounting

ISBN:

9781111581565

Author:

Gaylord N. Smith

Publisher:

Cengage Learning

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

Excel Applications for Accounting Principles

Accounting

ISBN:

9781111581565

Author:

Gaylord N. Smith

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS