On April 1, 2020 Sony Company sold merchandise worth $10,000 to Dan Company, terms 4/10, n/30. On April 4 Dan returned merchandise valued $500 and on April9 Dan paid the account in full. Sony Company records the following entry on April 4, 2020: * O Debit Cash 10,000 and Credit Sales Revenue $10,000. O Debit Accounts Receivable $10,000 and Credit Sales Revenue $10,000. O Debit Cash $9,500 and Sales Discount $500 and Credit Accounts Receivable $10,000. Debit Sales Return and Allowance $500 and Credit Accounts Receivable $500. None of the above.

On April 1, 2020 Sony Company sold merchandise worth $10,000 to Dan Company, terms 4/10, n/30. On April 4 Dan returned merchandise valued $500 and on April9 Dan paid the account in full. Sony Company records the following entry on April 4, 2020: * O Debit Cash 10,000 and Credit Sales Revenue $10,000. O Debit Accounts Receivable $10,000 and Credit Sales Revenue $10,000. O Debit Cash $9,500 and Sales Discount $500 and Credit Accounts Receivable $10,000. Debit Sales Return and Allowance $500 and Credit Accounts Receivable $500. None of the above.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter10: Accounting For Sales And Cash Receipts

Section: Chapter Questions

Problem 2CE: Prepare journal entries for the following sales and cash receipts transactions. (a) Merchandise is...

See similar textbooks

Related questions

Q: On February 20, 2023, LIME COrporation sold merchandise with a list price of ₱ 150,000 to Durian on…

A: DISCOUNTING TERM The 2/15 net 40 Calculation is a Way of Providing cash discount on Purchase. It…

Q: Abbey Co. sold merchandise to Gomez Co. on account, $42000, terms 2/15, net 45. The cost of the…

A: Net sales = Total sales - Sales return = $42000 - $4000 = $38000 Cost of goods sold =Original cost…

Q: 6

A: The objective of the question is to record the transactions for the year 2021 for Peru Industries.…

Q: On November 1, Al Ain Systems purchases merchandise for $1,500 on credit with terms of 2/5, n/30,…

Q: Cinnamon Buns Co. (CBC) started 2021 with $53,900 of merchandise on hand. During 2021, $288,000 in…

A: Ending inventory can be described as the end of the accounting period the ending inventory of the…

Q: Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. May 11…

A: The journal entries are prepared to record the transactions on regular basis. The cash discount is…

Q: Pharoah Company sells merchandise on account for $3600 to Morton Company with credit terms of 2/14,…

A: Whenever goods in the business are sold on credit, then Accounts receivable should be debited and…

Q: Susanne purchased merchandise with a net price of $347,500 with terms of sale of 4/15, n30. He makes…

A: Formula: Outstanding balance due at the end of credit period = Total Purchase price - Cash paid

Q: A sales invoice included the following information: merchandise price, $6,000; terms 2/10, n/eom.…

A: Formula to calculate cash received by the seller:Cash received by seller = Merchandise price -…

Q: Sydney returns $1,300 of the $29,000 of goods to Troy, who receives them the same day and restores…

A: Journal entries refer to the recording of transaction in an appropriate way. With the help of…

Q: Company A purchases goods for cash on January 15. They purchase 10 items at a cost of $50 per item.…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Question

On April 1, 2020 Sony Company sold merchandise worth $10,000 to Dan
Company, terms 4/10, n/30. On April 4 Dan returned merchandise valued $500
and on April9 Dan paid the account in full.
Sony Company records the following entry on April 4, 2020: *
Debit Cash 10,000 and Credit Sales Revenue $10,000.
O Debit Accounts Receivable $10,000 and Credit Sales Revenue $10,000.
O Debit Cash $9,500 and Sales Discount $500 and Credit Accounts Receivable $10,000.
Debit Sales Return and Allowance $500 and Credit Accounts Receivable $500.
None of the above.
On April 9 sales discount is equal to:

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Sales return and allowances:

VIEW

Answer:

VIEW

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Resin Milling issued a $390,500 note on January 1, 2018 to a customer in exchange for merchandise. The merchandise had a cost to Resin Milling of $170,000. The terms of the note are 24-month maturity date on December 31, 2019 at a 5% annual interest rate. The customer does not pay on its account and dishonors the note. Record the journal entries for Resin Milling for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on January 1, 2020, assuming interest has not been recognized before note maturity
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?
A customer pays on credit for $1,250 worth of merchandise, terms 4/15, n/30. If the customer pays within the discount window, how much will they remit in cash to the retailer? A. $1,250 B. $1,200 C. $50 D. $500
Mark Industries issues a note in the amount of $45,000 on August 1, 2018 in exchange for the sale of merchandise. Which of the following is the correct journal entry for this sale? A. B. C. D.
A customer returns $690 worth of merchandise and receives a full refund. What accounts recognize this sales return, assuming the customer has not yet remitted payment to the retailer? A. accounts receivable, sales returns and allowances B. accounts receivable, cash C. sales returns and allowances, purchases D. sales discounts, cost of goods sold
McKinney Co. estimates its uncollectible accounts as a percentage of credit sales. McKinney made credit sales of 1,500,000 in 2019. McKinney estimates 2.5% of its sales will be uncollectible. Prepare the journal entry to record bad debt expense for McKinney at the end of 2019.
Dixon Menswear Shop purchased shirts from Colt Company on May 28, 2019, and received an invoice with a list price amount of 5,000 and payment terms of 2/10, n/30. Dixon uses the net method to record purchases. Dixon should record purchases of: a. 4,000 b. 4,900 c. 5,000 d. 5,100
On November 2, 2022, Swifty Company has cash sales of $6050 from merchandise having a cost of $3600. The entries to record the day's cash sales will include: a $6050 debit to Accounts Receivable. • a $3600 credit to Cost of Goods Sold. a $3600 credit to Inventory. ● a $6050 credit to Cash.
Abbey co. Sold merchandise to gomez co. On account, $46000, terms 2/15, net 45. The cost of merchandise sold is $20000. Abbey co. Issued a credit memo for $4700 for merchandise returned that originally cost $2800. Gomez co. Paid the invoice within the discount period. What is the amount of gross profit earned by abbey co on the above transactions?
4) During June 2019, Andy Company had the following transactions: 1 Sales of $185,000 ($142,000 on account, $43,000 for cash). 2. Collections on account, $128,000 3 Write-offs of uncollectible receivables, S1,900 4. Recovery of receivable previously written off $600. Additional information Ignore Cost of Goods Sold Andy uses the allowance method for uncollectibles Andy estimates that 4.50% of its accounts receivable will be uncollectible. On June 1, 2019, the Accounts Receivable balance was $25.000 and the Allowance for Bad Debts had a normal account balance of $1,125. Requirements: a. Prepare the journal entries for the June 2019 transactions. b. prepare the june 30, 2019 adjusting journal entry. c. what is the net realizable value of acccounts receivable on june 30, 2019(after the adjusting journal has been posted)?
Kiner Corp. purchases $36,000 of merchandise on account from Schell Co., terms 2/10, n/30. What is the entry on Kiner's books to record the payment of the invoice within the discount period? Debit Cash for $35,280; Credit Accounts Payable for $35,280 Debit Inventory for $720 and Debit Cash for $35,280; Credit Accounts Payable for $36,000 Debit Accounts Payable for $36,000; Credit Cash for $35,280 and Credit Inventory for $720 Debit Accounts Payable for $35,280; Credit Cash for $35,280
first sale! They sold $100,000 worth of goods on credit, with terms 3/10, n/20, on 2/1/2021. Record this journal entry using both the net and gross methods. Record the journal entry if the customer pays off this account on 2/5/2021. Record the journal entry if the customer pays off this account on 3/1/2021.