Record these business transactions in debit and credit format a) The Company purchased Inventory on 30 day credit terms for $ 90,000 (2/10,net 30) b) The Company purchased the inventory above on FOB shipping point terms. Freight cost is $1,200 c) $5,000 of the Inventory was damage upon receipt and the Company returned it. d) The Company took the discount offered in item A above and paid the balance due within 10days e) The Company had sales revenue to customers of $ 200,000 which were sold on 2/10 net 30 credit terms. f) The product sold in e) above had a cost of $70,000 g) The Company received cash for payment of Accounts Receivable within the 10 days h) The Company had sales revenue to customers of $ 100,000 on account i) The Company determined that it required an allowance for doubtful accounts of 3 % of the outstanding Accounts Receivable at year end. ( Determine the outstanding AR from the above transactions)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
Record these business transactions in debit and credit format
a) The Company purchased Inventory on 30 day credit terms for $ 90,000 (2/10,net 30)
b) The Company purchased the inventory above on FOB shipping point terms. Freight cost is $1,200
c) $5,000 of the Inventory was damage upon receipt and the Company returned it.
d) The Company took the discount offered in item A above and paid the balance due within 10days
e) The Company had sales revenue to customers of $ 200,000
which were sold on 2/10 net 30 credit terms.
f) The product sold in e) above had a cost of $70,000
g) The Company received cash for payment of Accounts Receivable within the 10 days
h) The Company had sales revenue to customers of $ 100,000 on account
i) The Company determined that it required an allowance for doubtful accounts of 3 % of the
outstanding Accounts Receivable at year end. ( Determine the outstanding AR from the above transactions)
Transcribed Image Text:Record these business transactions in debit and credit format a) The Company purchased Inventory on 30 day credit terms for $ 90,000 (2/10,net 30) b) The Company purchased the inventory above on FOB shipping point terms. Freight cost is $1,200 c) $5,000 of the Inventory was damage upon receipt and the Company returned it. d) The Company took the discount offered in item A above and paid the balance due within 10days e) The Company had sales revenue to customers of $ 200,000 which were sold on 2/10 net 30 credit terms. f) The product sold in e) above had a cost of $70,000 g) The Company received cash for payment of Accounts Receivable within the 10 days h) The Company had sales revenue to customers of $ 100,000 on account i) The Company determined that it required an allowance for doubtful accounts of 3 % of the outstanding Accounts Receivable at year end. ( Determine the outstanding AR from the above transactions)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Accounting for discounts
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
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education