on May 1. Terms were 20/5, n/60. PART A The accounting period of the company coincides with the calendar year. In this section, please assume XYZ paid the balance due on May 4. In light of this, net sales reported on ABC's income statement are Euro...... Place your answer here: PART B In this section, please assume XYZ returned on May 2, Euro 5 of defective goods, and then paid the outstanding balance due on May 16. In light of this, net sales reported on ABC's income statement are Euro....

on May 1. Terms were 20/5, n/60. PART A The accounting period of the company coincides with the calendar year. In this section, please assume XYZ paid the balance due on May 4. In light of this, net sales reported on ABC's income statement are Euro...... Place your answer here: PART B In this section, please assume XYZ returned on May 2, Euro 5 of defective goods, and then paid the outstanding balance due on May 16. In light of this, net sales reported on ABC's income statement are Euro....

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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GRAPEFRUIT Co. Uses the NET method to record sales made on credit. On June 10, 2023, it made sales of ₱100,00 with terms 2/10, n/30 to FIG Farms, Inc. On June 19, 2023, GRAPEFRUIT received payment for 1/2 the amount due from FIG Farms. GRAPEFRUIT’s fiscal year end is on June 30, 2023. What amount will be reported in the statement of financial position for the accounts receivable from FIG Farms, Inc? A. ₱49, 000 B. ₱50, 000 C. ₱48, 000 D. ₱51, 000
c)Discuss, under the following examples, what the accounting treatment should be and whether Revenue should be recognised or not in the financial statements for the year-end 31 December 2010: (i) On 18 December 2010, DLLA had received ZMK10,000,000 in relation to goods which are due to be shipped on 6 January 2011 to Burundi. At the year-end, the goods are still in the warehouse of DLLA Limited. (ii) On 15 December 2010, DLLA sold goods to a customer amounting to ZMK3,000,000. The customer will pay for these goods on 20 January 2011. The cost of the goods sold was ZMK2,000,000. (iii) On 1 December 2010, DLLA sold goods to a new customer in Zambia. DLLA are trying to break into this market and have done a deal with the new customer whereby the customer has the right to return any unsold goods before 31 March 2011 for a full refund. The amount of the goods sold was ZMK25,000,000. (iv) On 20 December 2010, DLLA sold goods, amounting to ZMK8,000,000 to a customer who normally…
am. 134.
an invoice for kitchen appliances is dated December 23 and is paid on January 14 of the following year. credit terms are 2/15,n/45 EOM. The total amount, $497.48 includes a charge for freight and insurance of $62.43. A. What amount should be paid? B.How much is credited to the buyer's account? C. Is any money still owed after the payment?
Please answer the question correctly. Thank you.
GAS" Company does not segregate sales and sales taxes at the time of sale. The sales register total for the month of March was $25000. Assume that all sales are subject to a 13% sales tax. Required: Based on the above-given information, answer the following questions: • What amount must be presented as a sales tax expense on the Income statement for the month of March? • What is the amount that must be presented as sales revenue on the income statement for the month of March? If the "GAS" Company did not pay the income tax payable as of 31/3, then the company must present sales tax payable with a value of:
1. During December, A Company started doing business and had gross credit trade sales of $800,000, terms 2/10 Net 30. The cost of goods sold of $480,000, selling general administration costs of $100,000, Interest Expense of $10,000; and an income tax rate of 30%. a. Prepare an income statement b. Prepare journal entries Assuming gross method and all payments for the trade sales were made within 10 days.
Company X sold merchandise for $50,000 with terms 3/30, n/90 on January 1. On January 29, Company X received half the payment in cash. On March 1, they received the remaining half. Prepare the journal entries to record the sale and the receipt of cash under (1) the gross method and (2) the net method. What effect does using the gross method vs. the net method have on the company’s current ratio after the sale? After the receipt of cash?