OBJECTIVE 3 - 1 - After the amount due on a sale of $25,000, terms 1/10, n/eom, is received from a customer within the discount period, the seller consents to the return of the entire shipment. The cost of the merchandise returned was $15,000. (a) What is the amount of the refund owed to the customer? (b) Journalize the entries made by the seller to record the return and the refund. OBJECTIVE 3 - 2 A retailer is considering the purchase of 100 units of a specific item from either of two suppliers. Their offers are as follows: A: $200 a unit, total of $20,000, 2/10, n/30, no charge for freight. B: $195 a unit, total of $19,500, 1/10, n/30, plus freight of $400. Which of the two offers, A or B, yields the lower price? OBJECTIVE 3 - 3 - Determine the amount to be paid in full settlement of each of the following invoices, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Freight Paid by Seller Retums and Allowances Merchandise $15,000 10,000 8,250 FOB destination, n/30 FOB shipping point, 2/10, n/30 FOB shipping point, 1/10, n/30 FOB shipping point, 2/10, n/30 FOB destination, 2/10, n/30 $ 800 1,200 750 a. b. $400 C. d. 2,900 125 400 e. 3,850 OBJECTIVE 4 - 1 - Iverson Tile Co.'s perpetual inventory records indicate that $675,150 of merchandise should be on hand on December 31, 2010. The physical inventory indicates that $649,780 of merchandise is actually on hand. Journalize the adjusting entry for 'the inventory shrinkage for Iverson Tile Co. for the year ended December 31, 2010.
OBJECTIVE 3 - 1 - After the amount due on a sale of $25,000, terms 1/10, n/eom, is received from a customer within the discount period, the seller consents to the return of the entire shipment. The cost of the merchandise returned was $15,000. (a) What is the amount of the refund owed to the customer? (b) Journalize the entries made by the seller to record the return and the refund. OBJECTIVE 3 - 2 A retailer is considering the purchase of 100 units of a specific item from either of two suppliers. Their offers are as follows: A: $200 a unit, total of $20,000, 2/10, n/30, no charge for freight. B: $195 a unit, total of $19,500, 1/10, n/30, plus freight of $400. Which of the two offers, A or B, yields the lower price? OBJECTIVE 3 - 3 - Determine the amount to be paid in full settlement of each of the following invoices, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Freight Paid by Seller Retums and Allowances Merchandise $15,000 10,000 8,250 FOB destination, n/30 FOB shipping point, 2/10, n/30 FOB shipping point, 1/10, n/30 FOB shipping point, 2/10, n/30 FOB destination, 2/10, n/30 $ 800 1,200 750 a. b. $400 C. d. 2,900 125 400 e. 3,850 OBJECTIVE 4 - 1 - Iverson Tile Co.'s perpetual inventory records indicate that $675,150 of merchandise should be on hand on December 31, 2010. The physical inventory indicates that $649,780 of merchandise is actually on hand. Journalize the adjusting entry for 'the inventory shrinkage for Iverson Tile Co. for the year ended December 31, 2010.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:OBJECTIVE 3 - 1
- After the amount due on a sale of $25,000, terms
1/10, n/eom, is received from a customer within the
discount period, the seller consents to the return of
the entire shipment. The cost of the merchandise
returned was $15,000. (a) What is the amount of the
refund owed to the customer? (b) Journalize the
entries made by the seller to record the return and
the refund.
OBJECTIVE 3 - 2
A retailer is considering the purchase of 100
units of a specific item from either of two
suppliers. Their offers are as follows: A: $200
a unit, total of $20,000, 2/10, n/30, no
charge for freight. B: $195 a unit, total of
$19,500, 1/10, n/30, plus freight of $400.
Which of the two offers, A or B, yields the
lower price?
Transcribed Image Text:OBJECTIVE 3 - 3
- Determine the amount to be paid in full settlement of each of
the following invoices, assuming that credit for returns and
allowances was received prior to payment and that all invoices
were paid within the discount period.
Freight
Paid by Seller
Retums and
Allowances
Merchandise
$15,000
10,000
8,250
FOB destination, n/30
FOB shipping point, 2/10, n/30
FOB shipping point, 1/10, n/30
FOB shipping point, 2/10, n/30
FOB destination, 2/10, n/30
$ 800
1,200
750
a.
b.
$400
C.
d.
2,900
125
400
e.
3,850
OBJECTIVE 4 - 1
- Iverson Tile Co.'s perpetual inventory records
indicate that $675,150 of merchandise should be on
hand on December 31, 2010. The physical inventory
indicates that $649,780 of merchandise is actually on
hand. Journalize the adjusting entry for 'the
inventory shrinkage for Iverson Tile Co. for the year
ended December 31, 2010.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education