On December 1, 2021, X Co. bought merchandise from Y Co. costing P50,000, terms 2/10, n/30, FOB shipping point. Y Co. prepaid the freight of P6,000 on December 2, 2021. On December 4, Y Co. issued a credit memorandum for damaged merchandise returned by X Co. amounting to P2,000. X Co. paid in full the balance due on December 11, 2021. 1. How much is the cash discount on December 11, 2021? A. P1.080 B. P5,880 C. P960 D. PO

On December 1, 2021, X Co. bought merchandise from Y Co. costing P50,000, terms 2/10, n/30, FOB shipping point. Y Co. prepaid the freight of P6,000 on December 2, 2021. On December 4, Y Co. issued a credit memorandum for damaged merchandise returned by X Co. amounting to P2,000. X Co. paid in full the balance due on December 11, 2021. 1. How much is the cash discount on December 11, 2021? A. P1.080 B. P5,880 C. P960 D. PO

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 1MC: The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before...

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On December 1, 2021, X Co. bought merchandise from Y Co. costing P50,000, terms 2/10, n/30, FOB shipping point. Y Co. prepaid the freight of P6,000 on December 2, 2021. On December 4, Y Co. issued a credit memorandum for damaged merchandise returned by X Co. amounting to P2,000. X Co. paid in full the balance due on December 11, 2021. A. How much is the freight paid the buyer? O P6,000 0 P5,880 O P960 O PO B. How much is the freight paid by the seller? O P6,000 O P5.880 O P960 O PO
On June 1, 2022, FDN Company sold merchandise to ABC Trading worth P40,000 with credit term of 2/10, n/30 under freight term FOB Destination. The cost of the freight of P1,200 was paid by FDN. On June 3, ABC Trading returned some defective merchandise worth P2,300 and on the same day, made a partial payment of P12,000. How much should be collected from ABC by FDN as full payment considering that payment is made within the discount period?
On July 2, 2021, Windsor Company sold to Sue Black merchandise having a sales price of $11,100 (cost $6,660) with terms of 2/10. n/30. f.o.b. shipping point. Windsor estimates that merchandise with a sales value of $810 will be returned. An invoice totaling $130, terms n/30, was received by Black on July 6 from Pacific Delivery Service for the freight cost. Upon receipt of the goods, on July 3, Black notified Windsor that $400 of merchandise contained flaws. The same day, Windsor issued a credit memo covering the defective merchandise and asked that it be returned at Windsor’s expense. Windsor estimates the returned items to have a fair value of $150. The freight on the returned merchandise was $20 paid by Windsor on July 7. On July 12, the company received a check for the balance due from Black. Prepare journal entries for Windsor Company to record all the events noted above assuming sales and receivables are entered at gross selling price. (Credit account titles are…
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On June 3, 2020, Nash Company sold to Ann Mount merchandise having a sales price of $7,200 (cost $4,320) with terms of n/60, f.o.b. shipping point. Nash estimates that merchandise with a sales value of $720 will be returned. An invoice totaling $140 was received by Mount on June 8 from Olympic Transport Service for the freight cost. Upon receipt of the goods, on June 8, Mount returned to Nash $300 of merchandise containing flaws. Nash estimates the returned items are expected to be resold at a profit. The freight on the returned merchandise was $23, paid by Nash on June 8. On July 16, the company received a check for the balance due from Mount.Prepare journal entries for Nash Company to record all the events in June and July. The journal entries required are: To record sales To record cost of goods sold To record sales returns To record cost of goods returned To record the freight cost
(ADOPTED) Newton General Merchandise had the following transactions in March 2021:March 2Purchased merchandise amounting to Php 36,000. Terms: 2/10, n/30 FOB shipping point. Paid the freight bill amounting to Php 4,000.March 5Returned Php 3,000 of the merchandise purchased on March 2 because they were defective.March 8Sold merchandise on account for Php 10,000. Terms 3/15, n/30. The cost of the merchandise sold was Php 6,000.March 10Paid the purchase made on March 2 less the return and the discount.March 12Received Php 2,000 of the merchandise sold on March 8. The cost of the merchandise returned was Php 1,200.March 22Received cash from the March 8 customer in full settlement of his account less the return and the discount.REQUIRED:Prepare the appropriate journal entries for both periodic and perpetual inventory systems.
On June 10, Pharoah Company purchased $8,500 of merchandise on account from Flounder Company, FOB shipping point, terms 2/10, n/30. Pharoah pays the freight costs of $520 on June 11. Damaged goods totaling $500 are returned to Flounder for credit on June 12. The fair value of these goods is $70. On June 19, Pharoah pays Flounder Company in full, less the purchase discount. Both companies use a perpetual inventory system. (a) Your answer is partially correct. Prepare separate entries for each transaction on the books of Pharoah Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit June 10 v Inventory 8,500 Accounts Payable 8,500 June 11 v Inventory 520 Cash 520 June 12 v Accounts Payable 500 Inventory 500 June 19 v Accounts Payable Inventory Cash MacBook Pro
On June 10, Pharoah Company purchased $ 8,500 of merchandise on account from Flounder Company, FOB shipping point, terms 2/10, n/30. Pharoah pays the freight costs of $ 520 on June 11. Damaged goods totaling $ 500 are returned to Flounder for credit on June 12. The fair value of these goods is $ 70. On June 19, Pharoah pays Flounder Company in full, less the purchase discount. Both companies use a perpetual inventory system.
On December 27, 20x1, YGS Co. received a sale order for a credit sale of goods with selling price of P300,000. The goods were shipped by YGS on December 31, 20x1 and were received by the buyer on January 2, 20x2. The related shipping costs amounted to P200. YGS Co. collected the receivable on January 5, 20x2. If the term of the sale is FOB destination, freight collect, how much net cash is collected on January 5, 20x27
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on 3, May ,2021, AI Noor company sold merchandise worth $20,000 received half of the amount and the residual on account , the company record this transaction as bellow debit cash for $ 20000 and credit sales for $20000. debit cash for $10000,and A/R for $10000,and credit sales for $20000. debit A/R for 20000 and credit sales for $20000. Debit cash for $10000 and A/P for $10000 , and credit sales for $20000 paid rent for $700 has been posted twice to rent expense , to rectify this transaction using short method debit rent expenses for $700,and credit cash for $750. debit cash for $700, and credit rent expense for $700. debit rent expense for $1400,and credit cash for $1400. Debit cash for $1400, and credit rent expense for $1400.
JBL undertook the following transactions for the month of Nov Purchased merchandise or $80,000 less 5-5 on terms 3/10 n/30. The entity paid freight for $2,500 and returned defective goods worth $7,000. JBL paid this account in full within the discount period. How much was the purchase discount?