sales invoice included the following information: merchandise price, $4,500; transportation, $300; terms 1/10, n/eom, FOB shipping point. Assuming that a credit for merchandise returned of $600 is granted prior to payment, that the transportation is prepaid by the seller, and that the invoice is paid within the discount period, what is the amount of cash received by the seller?

Q: After the amount due on a sale of $22,400, terms 1/10, n/eom, is received from a customer within the…

A: The buyer has paid the amount within the discounted period.  So the refund will also be made after…

Q: Elkhorn Company purchased merchandise on account from Springhill Company for $42,000, terms 2/10,…

A: Accounts payable are the suppliers from whom a company purchases its raw material or input stock. In…

Q: Sales-related transactions After the amount due on a sale of $28,200, terms n/eom, is received from…

A: Step 1:Answer a.The total amount due on a sale was $28,200 which the customer has already paid.…

Q: Determine the amount to be paid in full settlement of each purchase invoice, assuming that credit…

A: In the case of FOB Shipping point Amount to be paid = ( Purchases - Return ) * ( 1 - Discount rate )…

Q: Describe each transaction. b. What was the invoice amount of the merchandise that was returned?

A: Accounts receivable:  It is a current asset of an organization. It is the amount due from customers…

Q: A sales invoice included the following information: merchandise price, P4,200; transportation, P320;…

A: Discount on payment = (sales - sales return) x discount rate = (4200-600)*1% = P36

Q: The journal entry to record the payment of merchandise on account with a discount under the Periodic…

A: Periodic inventory method: It is a inventory valuation method. In this method inventory account is…

Q: Determine the amount to be paid in full settlement of each purchase invoice, assuming that credit…

A: The total gross purchases might be divided by the purchase allowances, buy refunds, and purchase…

Q: If merchandise is sold on account to a company for $1000, terms FOB shipping point, 1/10, n/30, and…

A: FOB Shipping Point: Free On Board (FOB) shipping point means that the buyer takes all the risks and…

Q: A sales invoice included the following information: merchandise price, $12,400; terms 1/10, n/eom,…

A: Concept of terms 1/10, n/eom: 1/10 means 1% discount is valid of the payment has been made within…

Q: Merchandise subject to terms 2/10, n/30, FOB shipping point, is sold on account to a customer for…

A: Given: Payments terms of 2/10, n/30, means that discount of 2% is valid for 10 days from the date of…

Q: a. b. Merchandise $10,700 $13,300 a. $ b. $ Freight Paid by Seller $376 $58 Freight Terms FOB…

A: Lets understand the basics.Under FOB destination, freight is the seller's expense and under the FOB…

Q: Determining Amounts to be Paid on Invoices Determine the amount to be paid in full settlement of…

A: FOB shipping point and FOB destination point are two important terms using during the transfer of…

Q: Purchase-related transactions The Stationery Company purchased merchandise on account from a…

A: Perpetual inventory system is an effective inventory system which is used to record inventory in a…

Q: The average collection period determines the number of a.days it takes to sell the inventory.…

A: Average collection period is the time taken by an entity to collect from its accounts receivables…

Q: An invoice received included the following information: merchandise price, $12,000; terms 1/10,…

A: Invoice is a document on which all goods / services providing details are mentioned. It includes the…

Q: Determine the amount to be paid in full settlement of each invoice, assuming that credit for returns…

A: After the products are shipped from the seller's location, the buyer acquires ownership of them…

Q: After the amount due on a sale of $29,200, terms 1/10, n/eom, is received from a customer within the…

A: Merchandising businesses: Merchandising companies which buy goods from suppliers, or manufacturers,…

Q: After the amount due on a sale of $24,300, terms n/eom, is received from a customer, the seller…

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

Q: Purchase transactions: Rolfes company purchased merchandise on account from Springhill Company for $…

A: Purchase discount is calculated by multiplying purchase less return by discount rate. 2/10, n/30…

Q: Using T accounts for Cash, Accounts Payable, Purchases, Purchases Returns and Allowances, Purchases…

A:

Q: The buyer received an invoice from the seller for merchandise with list price of RO 7500 and credit…

A: Understanding the payment terms: The payment terms of 2/10 and n/30 means the discount of 2% is…

Q: Barans Company purchased merchandise on account from a supplier for $7,100, terms 2/10, n/30. Barans…

A: The cash discount which has available on the purchases is when the condition is fulfilled and the…

Q: After the amount due on a sale of s33,900, terms 2/10, neom, is received from a customer within the…

A:

Q: Determine the amount to be paid in full settlement of each of the following invoices, assuming that…

A: FOB shipping point explains that the ownership of the inventory is transferred to the purchaser once…

Q: An invoice received included the following information: merchandise price, $3,800; terms 1/10,…

A: Sales invoice:Sales invoice refers to the document which is used to inform the customer the amount…

Q: Santa Fe Retailing purchased merchandise from Mesa Wholesalers with credit terms of 3/10, n/60 and…

A: Lets understand the basics.The journal entries are prepared to record the transactions on regular…

Q: Sales-related transactions. After the amount due on a sale of $22,600, terms n/eom, is received from…

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

Q: Determine the amount to be paid in full settlement of each invoice, assuming that credit for returns…

A: MERCHANDISE PURCHASED = MERCHANDISE - RETURN ALLOWANCE = $13,200 - $1,300 = $11,900   = MERCHANDISE…

Q: Determine the amount to be paid in full settlement of each invoice, assuming that credit for returns…

A: Note: Under FOB destination, freight is the seller's expense and under the FOB shipping point,…

Q: Hider Company had a customer return merchandise purchased with cash with a sales price of $7,500.…

A: The journal entries are prepared to record the transactions on regular basis. Under estimated…

Q: Using T accounts for Cash, Accounts Payable, Purchases, Purchases Returns and Allowances, Purchases…

A: T-account: The condensed form of a ledger is referred to as T-account. The left-hand side of this…

Q: A sales invoice included the following information: merchandise price, $11,800; terms 1/10, n/eom;…

A: Sales - Return = Net Sales  Merchandise Price = $11,800 Prepaid Freight  = $560  Merchandise…

Q: Barans Company purchased merchandise on account from a supplier for $9,200, terms 2/10, n/30. Barans…

A: Sales are the revenues generated by the business from its day to day operations. The sales revenue…

Q: A sales invoice included the following information: merchandise price, $9,000; terms 1/10, n/eom;…

A: The seller is a person who sells the goods and would receive money for the goods sold.

Q: Determining Amounts to be Paid on Invoices Determine the amount to be paid in full settlement of…

A: The invoice is made against the account receivables.

Q: Determining Amounts to be Paid on Invoices Determine the amount to be paid in full settlement of…

A:

Q: Compute the amount to be paid for each of the four separate invoices assuming that all invoices are…

A: Introduction:- Discount term "2/10, n/60" means If the invoice is paid within 10 days of its date, a…

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is