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)
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)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
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)
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