purchased, but do not earn additional loyalty pointsmade by redeeming loyalty points. Based on past experience, Supply Club estimates a 60% probability that anypoint issued will be redeemed for the discount. During July 2024, the company redeemed 11,400 points and sold additional product of$142,500, so it recorded of revenue of $153,900. The aggregate stand-alone selling price of the purchased products is $153,900.Seventy percent of sales were cash sales, and the remainder were credit sales.Required:1. & 2. Prepare Supply Club's journal entry to record July and August sales. During August, customers redeem loyalty points on$68,400 of merchandise. Sixty-five percent of those sales were for cash, and the remainder were credit sales.Note: Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" inthe first account field.

To prepare the journal entries for Supply Club's July and August sales, we need to consider the cash…

Answered: purchased, but do not earn additional…

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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Carla Vista Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales returns extends 60 days. On February 10, 2021, a customer purchases on account $3500 of products (cost $1750). Assuming that based on prior experience, estimated returns are 20%. The journal entry to record the expected sales return includes a debit to Cash and a credit to Sales Revenue of $3500. debit to Sales Returns and Allowance of $700 and a credit to Allowance for Sales Returns and Allowances of $700. credit to Estimated Inventory Returns of $350. debit to Cost of Goods Sold and credit to Inventory for $1750.
During August, 2020, Sheffield’s Supply Store generated net sales of $60100. The company’s expenses were as follows: cost of goods sold of $35000 and operating expenses of $4500. The company also had rent revenue of $1000 and a loss on the sale of a delivery truck of $1700. Sheffield’s operating income for the month of August 2020 is $20600.$21600.$19900.$25100.
Cold Stone, an ice cream store in central Illinois, sells several varieties of popular ice creams in its neighborhood villages. The following data pertains to the year 2023. The annual sales revenue of the store is $4 million. The annual cost of all the goods sold is $3 million. The beginning inventory on January 01 is $0.5 million. The ending inventory on December 31 is $0.3 million. The beginning accounts receivables on January 01 is $0.2 million. The ending accounts receivables on December 31 is $0.1 million. The beginning accounts payables on January 01 is $0.3 million. The ending accounts payables on December 31 is $0 million. 10. Compute the Cash-to-Cash cycle of Cold Stone.
(Customer Loyalty Program) Martz Inc. has a customer loyalty program that rewards a customer with 1 customer loyalty point for every $10 of purchases. Each point is redeemable for a $3 discount on any future purchases. On July 2, 2017, customers purchase products for $300,000 (with a cost of $171,000) and earn 30,000 points redeemable for future purchases. Martz expects 25,000 points to be redeemed. Martz estimates a standalone selling price of $2.50 per point (or $75,000 total) on the basis of the likelihood of redemption. The points provide a material right to customers that they would not receive without entering into a contract. As a result, Martz concludes that the points are a separate performance obligation.Instructions(a) Determine the transaction price for the product and the customer loyalty points.(b) Prepare the journal entries to record the sale of the product and related points on July 2, 2017.(c) At the end of the first reporting period (July 31, 2017), 10,000 loyalty…
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…
Klum's Fashions sold merchandise for $45,000 cash during the month of July. Returns that month totaled $1,000. If the company's gross profit rate is 40%, Compute the following: a) Net sales revenue b) Cost of goods sold
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.
Sisyphus Inc. records total sales of $657,500 in the current period, with a cost of goods sold of $389,000 . Sisyphus expects 4% of sales to be returned. How much in net sales will Sisyphus recognize for the current period? Group of answer choices $373,400 $268,500 $631,200 $657,500 $257,760 The Sisyphus Inc’s (SSY) Company’s annual statement of cash flows reported the following (in millions): Net cash from financing activities $63,864 Net cash from investing activities -62,512 Cash at the beginning of the year 13,152 Cash at the end of the year 18,948 What did SSY report for “Net cash from operating activities” during the year? Group of answer choices $71,220 million cash inflow None of the above $4,444 million cash outflow $4,444 million cash inflow $71,220 million cash outflow
Dream Big Pillow Co., pays 65% of its purchases in the month of purchase, 30% the month after the purchase, and 5% in the second month following the purchase. It made the following purchases at the end of 2017 and the beginning of 2018: Nov. 2017 Dec. 2017 Jan. 2018 Feb. 2018 Mar. 2018 $58,000 $48,000 $33,000 $39,000 $45,000 Given the above purchases, how much cash will be paid in quarter 2018? Cash paid $
Heller Company offers an unconditional return policy to its customers. During the current period, the company records total sales of $935,000, with a cost of merchandise to Heller of $374,000. Based on past experience, Heller Company expects 4% of sales to be returned. How much in net sales will Heller Company recognize for the current period?
Which of the following interprets the interest coverage ratio of RED Merchandising? It takes 3.2 times to earn the interest charges payment. It takes 2.9 times to earn the interest charges payment. It takes 3.9 times to earn the interest charges payment. It takes 2.6 times to earn the interest charges payment.
N1. Sizzle & Griddle, a popular breakfast restaurant known for its mouthwatering bacon dishes, recorded impressive credit sales during their 2021 fiscal year. With net credit sales amounting to $3,832,806 and cost of goods sold totaling $3,032,962, the restaurant's financial performance showcased their ability to satisfy customers' cravings. Analyzing the Accounts Receivable balance provides insight into the efficiency of Sizzle & Griddle's collection process. As of the end of 2020, the restaurant had a balance of $618,730 in outstanding receivables, which increased to $700,409 by the end of 2021. What is the average collection period/days' sales in receivables?

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