Question 3: Debbie's Dairy Farm had the following transactions: Debbie ordered shelving worth $750. Debbie's selling price on a gallon of milk is $3.00. She finds out that most local stores are charging $3.50. Based on this information, she decides to increase her price to $3.25. She has an employee put a new price sticker on each gallon. A customer buys a gallon of milk paying cash. The shelving is delivered with an invoice for $750. Which events will be recorded in the accounting system?

Question 3: Debbie's Dairy Farm had the following transactions: Debbie ordered shelving worth $750. Debbie's selling price on a gallon of milk is $3.00. She finds out that most local stores are charging $3.50. Based on this information, she decides to increase her price to $3.25. She has an employee put a new price sticker on each gallon. A customer buys a gallon of milk paying cash. The shelving is delivered with an invoice for $750. Which events will be recorded in the accounting system?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Your friend, Wendy Geiger, owns a small retail store that sells candies and nuts. Geiger acquires her goods from a few select vendors. She generally makes purchase orders by phone and on credit. Sales are primarily for cash. Geiger keeps her own manual accounting system using a general journal and a general ledger. At the end of each business day, she records one summary entry for cash sales. Geiger recently began offering items in creative gift packages. This has increased sales substantially, and she is now receiving orders from corporate and other clients who order large quantities and prefer to buy on credit. As a result of increased credit transactions in both purchases and sales, keeping the accounting records has become extremely time- consuming. Geiger wants to continue to maintain her own manual system and calls you for advice. Write a memo to her advising how she might modify her current manual accounting system to accommodate the expanded business activities. Geiger is…
Assume Costco wants to compete with large manufacturers of golf bags. Costco begins selling a new model of golf bag in its stores for $150. The bag comes with a coupon that customers may mail in to receive a free box of one dozen Kirkland (Costco's brand) golf balls. Each dozen golf balls cost Costco $9.50 to produce and $1.50 to mail to the customer. Kirkland estimates that 40% of the customers who buy a golf bag will mail in the coupon for the free golf balls. During the first quarter of 2020 Costco sold 12,000 golf bags. During that time, 1,000 customers mailed in their coupons and Costco sent them their golf balls. What is the rebate expense and liability, respectively, shown on Costco's financial statements at the end of the first quarter of 2020?
Review the following sales transactions for Dish Mart and record any required journal entries. Note that all sales transactions are with the same customer, Emma Purcell. Mar. 5 Dish Mart made a cash sale of 14 sets of dishes at a price of $700 per set to customer Emma Purcell. The cost per set is $460 to Dish Mart. Mar. 9 Dish Mart sold 30 sets of dishes to Emma for $650 per set on credit, at a cost to Dish Mart of $430 per set. Terms of the sale are 10/15, n/60, invoice date March 9. Mar. 13 Emma discovers 8 of the dish sets are damaged from the March 9 sale and returns them to Dish Mart for a full refund. Mar. 14 Dish Mart sells 7 sets of dishes to Emma for $670 per set on credit, at a cost to Dish Mart of $410 per set. Terms of the sale are 10/10, n/60, invoice date March 14. Mar. 15 Emma discovers that 3 of the dish sets from the March 14 purchase and 7 of the dish sets from the March 5 sale are missing a few dishes but keeps them since Dish Mart granted an allowance of $220 per…
The Animal Adventure zoo gift shop sells stuffed animal toys. Its stuffed giraffe has asuggested retail price of $19.95. The zoo initially priced it at $17.99, but it is now markeddown to $13.50. At other zoos, this same stuffed giraffe is priced at $15.99. An AnimalAdventure zoo customer purchases the giraffe for $13.50 from the gift shop. At what priceshould Animal Adventure record the sale?a. $13.50b. $15.99c. $17.99d. $19.95
Tom went to the store and bought two shirts for $50 each, socks for $10 and pants for $30. If the sales tax was 6%, what was the total purchase price? Round to the nearest cent (two decimal places). Your answer will look like this: 50.25 For your answer, do NOT include words, symbols, commas, etc.
B. Manuel Romo sells tires at the local shopping mall. Romo earns 20 percent commission on the first $500, 25 percent on the next $1,000, and 30 percent on sales over $1,500. Last weekend he sold $1,940 worth of tires. What is his total commission? 4. Tunisia Buehrer sells sporting goods equipment. Buehrer earns 5 percent commission on the first $6,000, 7t percent on the next $6,000, and 10 percent on sales over $12,000. Her total sales for the month are $14,640. What is her total commission?
Comfy Home sells gift cards which can be loaded with any amount greater than $10, in increments of $5. Which of the following statements best describes the nature of gift card sales? Gift cards represent an asset because the company is entitled to receive revenues from future sales that will be paid for with gift cards. Gift cards represent an asset because the company will get to keep the cash from all gift cards that expire before they are redeemed. O Gift cards represent a liability because the company has an obligation to provide goods to customers at a future date. Gift cards represent owners' equity because the company can recognize revenue as soon as the gift cards are sold.
Supply Club, Incorporated, sells a variety of paper products, office supplies, and other products used by businesses and individual consumers. During July 2024, it started a loyalty program through which qualifying customers can accumulate points and redeem those points for discounts on future purchases. Redemption of a loyalty point reduces the price of one dollar of future purchases by 20% (equal to 20 cents). Customers earn one loyalty point for each dollar of goods purchased, but do not earn additional loyalty points for purchases that are made by redeeming loyalty points. Based on past experience, Supply Club estimates a 60% probability that any point issued will be redeemed for the discount. During July 2024, the company redeemed 10,200 points and sold additional product of $127,500, so it recorded of revenue of $137,700. The aggregate stand-alone selling price of the purchased products is $137,700. Seventy percent of sales were cash sales, and the remainder were credit sales.…
A car air conditioner system is recharged. The cost is normally $69.95 but iscurrently $48.50.You may want the bill to show the regular price and the saleprice so that the customer knows that it was a special.You also may want tonote that this was a special in case a problem arises and you need to refundthe full price—you will want to refund the sale price, and not the regular price.Include on the bill 5.5% sales tax. Write a bill for the recharging.
A local Sports Authority store, an athletic sports shop, bought and sold the following merchandise: Selling Cost Tennis rackets $2,900 Tennis balls price $ 3,999 210 70 Bowling balls Sneakers 1,050 8,105 2, 950 14, 888 a. What was the total cost of the merchandise bought by Sports Authority? Total cost of the merchandise 22.047 b. If the shop sold all its merchandise, what were the sales and the resulting gross profit? Total sales Gross profit