LULU Hypermarket on March 1st, 2020, sells food product on account to Al Faiha Farm for RO 5,000. The sales term is 5% on 60 days. On March 6th, Al Faiha Farm returned some of the food product worth 500 to LULU. On March 25 Al Faiha Farm paid LULU the amount owed. Prepare the journal entry to record this transaction on the books of LULU Hypermarket on the 25th of March: Select one: a. Sales Revenue 4500 Account Receivable 4275 Sales Discount 225 b. Cash 4500 Allowances for doubtful account 4500 С. Cash 4275 Sales Discount 225 Account Receivable 4500

LULU Hypermarket on March 1st, 2020, sells food product on account to Al Faiha Farm for RO 5,000. The sales term is 5% on 60 days. On March 6th, Al Faiha Farm returned some of the food product worth 500 to LULU. On March 25 Al Faiha Farm paid LULU the amount owed. Prepare the journal entry to record this transaction on the books of LULU Hypermarket on the 25th of March: Select one: a. Sales Revenue 4500 Account Receivable 4275 Sales Discount 225 b. Cash 4500 Allowances for doubtful account 4500 С. Cash 4275 Sales Discount 225 Account Receivable 4500

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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Please read the questions carefully the First question is asking for journal entry.
Company XYZ sold goods worth $5,000 on credit with a 2% discount if paid within 15 days. The customer paid the invoice after 20 days. What amount did the customer pay?
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On July 10, 2020, Bridgeport Music sold CDs to retailers on account and recorded sales revenue of $764.000 (cost $588,280) Bridgeport grants the right to return CDs that do not sell in 3 months following delivery, Past experience indicates that the normal return rate is 15%. By October 11, 2020, retailers returned CDs to Bridgeport and were granted credit of $78,200. Prepare Bridgeport's journal entries to record (a) the sale on July 10, 2020, and (b) $78,200 of returns on October 11, 2020, and on October 31, 2020. Assume that Bridgeport prepares financial statement on October 31, 2020. (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 O for the amounts.) Account Titles and Explanation No. € (b) Date (To record sales) (To record cost of goods sold) (To record sales) (To record cost of goods sold) (To record sales returns) (To record cost of goods returned) Debit…
entxies Jounal Green Company sells goods to Thumb Inc. on account on January 1, 2017.The goods have a sales price of $312,000 (cost $164,000).The terms of sale are net 30.lf Thumb pays within 5 days, it receives a cash discount of $12,000.Past history indicates that the cash discount will be taken.
Prepare journal entries for each of the following sales transactions by Elegant Electronics, including a 3.5% sales tax, and the remittance of all sales tax to the tax board on October 23. Accounts Payable Merchandise Inventory Sales Discount Cash Sales Sale Tax Payable PLEASE NOTE: You must follow the format in the textbook and enter the account names exactly as written above and all dollar amounts will be rounded to two decimal places with "$" and commas as needed (i.e. $12,345.67). Elegant Electronics sells a cellular phone on September 2 for $450: DR DR or CR? CR On September 6, Elegant sells another cellular phone for $500: DR DR or CR? CR The remittance of all sales tax to the tax board on October 23: DR CR
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.
On July 10, 2020, Tamarisk Music sold CDs to retailers on account and recorded sales revenue of $657,000 (cost $538,740). Tamarisk grants the right to return CDs that do not sell in 3 months following delivery. Past experience indicates that the normal return rate is 15%. By October 11, 2020, retailers returned CDs to Tamarisk and were granted credit of $84,200.Prepare Tamarisk’s journal entries to record (a) the sale on July 10, 2020, and (b) $84,200 of returns on October 11, 2020, and on October 31, 2020. Assume that Tamarisk prepares financial statement on October 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) No. Date Account Titles and Explanation Debit Credit (a) enter an account title to record sales on July 10, 2017 enter a debit amount…
ou have a credit card that charges an interest rate of 15.65% compounded monthly. The table below shows your activity for the month of April. Date Activity Amount Balance April 1 Beginning Balance 1,375.00 April 8 Purchase 41.60 1,416.60 April 15 Payment −175.00 1,241.60 April 17 Purchase 93.00 1,334.60 April 20 Purchase 14.00 1,348.60 April 28 Purchase 35.30 1,383.90 April 30 Ending Balance 1,383.90 What is the average daily balance for this account?$What is the finance charge for the month of April?
A small retailer allows customers to use two different credit cards in charging purchases. The CC Bank Card assesses a 4.6% service charge for credit card sales. The VIZA Card assesses a 3.8% charge on sales for using its card. This retailer also has its own store credit card. As of Feb 28 month-end, the retailer earned $65 in net interest revenue on its own card. Prepare journal entries to record the following selected credit card transactions. Feb. 2 Sold merchandise for $3,000 (that had cost $1800) and accepted the customer’s CC Bank Card. Feb. 6 Sold merchandise for $2200 (that had cost $1500) and accepted the customer’s VIZA Card. Feb 28 Recognized the $65 interest revenue earned on its store credit card for January.
Record journal entries for the following transactions of Piano Wholesalers. Jan. 1, 2018 Issued a $1,241,650 note to customer Arrowstar as terms of a merchandise sale. The merchandise’s cost to Piano Wholesalers is $608,000. Note contract terms included a 24-month maturity date and a 3.4% annual interest rate. Dec. 31, 2018 Piano Wholesalers records interest accumulated for 2018. Dec. 31, 2019 Piano Wholesalers converts Arrowstar’s dishonored note into account receivable. This includes accumulated interest for the 24-month period. April 12, 2020 Piano Wholesalers sells the outstanding debt from Arrowstar to a collection agency at 40% of the accounts receivable value. Jan. 1, 2018 Notes Receivable: Arrowstar fill in the blank 2 fill in the blank 3 Sales Revenue fill in the blank 5 fill in the blank 6 To record sale in exchange for Notes Receivable: Arrowstar Jan. 1, 2018 Cost of Goods Sold fill in the blank 8 fill in the blank 9 Merchandise Inventory fill in…
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