Last year, Harley-Davidson sold $14,200 in bikes for a total of $48,900 in account. This transaction most likely would result in a debit toforand a credit toforO COGS, $48,900, sales $48,900O cash, $48,900, sales, $48,900O cash, $14,200, inventory, $14,200O COGS, $14,200, inventory, $14,200

Sales - A sale is an exchange of money for goods, services, or other property. Net sales refer to…

Answered: Last year, Harley-Davidson sold $14,200…

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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You purchased $8,000 of inventory on terms 2/10, n/30. If you pay the bill on day five, which of the following are true statements relating to just the day five transaction? A. You will credit cash for $8000 B. You will debit inventory for $160 C. You will credit inventory for $160 D. You will credit cash for $7,840 E. You will label this transaction as a cash entry F. You will label this transaction as paid bill. Select all that apply.
DOLLAR BILL'S, a retail store in New York City, buys its inventory on credit. Upon purchase, it is given 30 days in which to pay its suppliers. It sells all of its merchandise on credit. It extends 60 days of credit to its customers. Its inventory turnover rate is 60 days.Situation 1Using the Cash Conversion Model, measure DOLLAR BILL'S financing cycle in both days and money ($US) using the following assumptions: Sales of $730,000 Gross Margin of 30% Financing Rate 6.5% Situation 2Recent management decisions have had the following impact: DOLLAR BILL has renegotiated its credit line so that it has 35 days to pay its suppliers It now extends 45 days of credit to its customers, It has an inventory turnover rate of 45 days. All other factors remain the same. Has DOLLAR BILL’S financing cycle improved or declined? Quantify the change in days and in dollars. Please show your work.
In its first year of operations, Dulany Company, a clothing store, purchased $18,000 of merchandisefrom a supplier on account, terms 2/10, n 30. Dulany Company returned $3,000 of defectivemerchandise, and then paid the amount due within the discount period. During the year, the companysold merchandise inventory costing $12,000 to its customers. What would be the balance in Dulany’sCompany’s Merchandise Inventory account at the end of the year?A. $2,700B. $3,200C. $3,300D. $2,640
ssence of Skunk Fragrances, Ltd., sells 6,900 units of its perfume collection each year at a price per unit of $399. All sales are on credit with terms of 2/30, net 50. The discount is taken by 50 percent of the customers. a.What is the amount of the company’s accounts receivable? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)b.In reaction to sales by its main competitor, Sewage Spray, Essence of Skunk is considering a change in its credit policy to terms of 4/30, net 50 to preserve its market share. Will this change in policy increase or decrease accounts receivable?
The accounts payable balance at the beginning of the year was $98,000. The company purchased $445,000 worth of goods on account, and the ending balance of the payables account was $135,000. What were the total payments on account? Multiple Choice $548,000 $463,000 $408.000 $478.000
Perspective Company uses special journals to record its transactions. The following occurred during the month. Dec 1 Purchased 1,000 items of merchandise inventory costing 55 pesos each from A Corp. The company paid cash hence A Corp. gave the company a 3% discount. Perspective had to pay P1,000 for freight with terms, FOB Shipping Point. The company bought three pieces of laptops amounting to P50,000 each for cash. The laptops will be used by the new Accounting Officers. The laptops are estimated to have a useful life of 4 years with no salvage value. Purchased P130,000 of merchandise on credit with terms 2/10, n/30 Dec 3 from Z Ltd. The company sold 1,200 items to B Inc. for P 90,000 with terms 1/8, n/30. The cost of the merchandise is P67,000. The Company borrowed P500,000 cash by signing a note payable from Metrobank. The note has 45-day maturity and a 12% annual Dec 4 Dec 8 interest rate. B Inc. paid half of the amount due from them. The company paid in full the merchandise from Z…
18. Calapan Company provided the data in the table below. In 2011, accounts written off amounted to P100,000. Sales returns with credit memo amounted to P150,000 and purchase returns, P50,000. Cash receipts from customers after P200,000 discounts totaled P6,000,000, while cash payments to trade creditors amounted to P4,000,000 after discounts of P300,000. Cash paid to customers for goods returned was P50,000. On this transaction, accounts receivable was debited. Under accrual basis, what amount should be reported as gross purchases for the current year? a. 4,700,000 b. 4,350,000 c. 4,300,000 d. 4,000,000
Rangling Company, buys goods from A.J. Stop Company that gives sales terms of 2.5/10, net 30 days. Rangling has annual gross purchases of $1,000,000. Calculate the maximum amount of costly trade credit that Rangling could get, assuming it abides by the A.J.’s credit terms? (Assume a 365-day year.)
I purchased goods on account for 8,200, terms 1/10, n/30. I returned $1,700 of the goods and received full credit. If I pay the invoice within the discount period, what is the amount of cash required for the payment? Round the answer to the nearest dollar.
Sales sales revenue for a sporting good store amounted to $539,000 for the correct. All sales are on account and are subject to a sales tax of 11% which of the following would be included in the journal entry to record sales transaction
Illustration: You opened a novelty store called "The Awesome Shop" on January 1, 20x1. The following were the transactions during the year: 1. ProvidedP100,000 cash as initial investment. 2. Obtained a P50,000 loan. 3. Acquired furniture and fixtures for P80,000 cash. 4. Acquired inventory on account for P60,000. (Use perpetual inventory system) 5. Sold goods on cash basis for P200,000. The cost of sales is P20,000. 6. Sold goods on account for P300,000. The cost of sales is P30,000. 7. Paid supplies expense for P20,000 cash. 8. Paid rent expense of P180,000. 9. Paid utilities expense of P40,000. 10. Collected P240,000 accounts receivable. 11. Paid P30,000 accounts payable. 12. Made total drawings of P25,000.
Good Buy Company made total purchases of $270,000 in the most current year. It paid freight in of $1,000 on its purchases. Freight out, the cost to deliver the merchandise when it was sold to Good Buy's customers, totaled $7,200. Of the total purchases Good Buy made during the period, it returned $24,000 of the merchandise. Good Buy took advantage of $2,300 of purchase discounts offered by its vendors. What was Good Buy's cost of inventory?

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Last year, Harley-Davidson sold $14,200 in bikes for a total of $48,900 in account. This transaction most likely would result in a debit to for and a credit to for O COGS, $48,900, sales $48,900 O cash, $48,900, sales, $48,900 O cash, $14,200, inventory, $14,200 O COGS, $14,200, inventory, $14,200