Shaw Company purchased 2000 units of a merchandise (called XOM) at $10 per unit from Reynold Company on account.  Sales taxes was 6% which was not included in the price.  Shaw Company was charged $150 for shipping and handling. Terms were 2/10, n/30.

Q: Vertical Analysis Income statement information for Einsworth Corporation follows: Sales $509,000…

A: Vertical analysis: The comparison of an item of a financial statement against the total amount of…

Q: JBL undertook the following transactions for the month of Nov Purchased merchandise or $80,000 less…

A: Net purchase = purchase x (1- trade discount rate) x (1- trade discount rate)  = 80000*(1-0.95)…

Q: Glasgow Company uses the periodic inventory system. On February 1, the corporation purchased…

A: Introduction:- On February 1, the corporation purchased inventory on account for $16,000. The terms…

Q: On September 1, Jerry’s Lighting purchased merchandise with a list price of $6,700 with credit terms…

A: Lets understand the basics. For attracting early cash receipt, seller generally offer discount term…

Q: Abbey Co. sold merchandise to Gomez Co. on account, $10,400, terms 2/15, net 30. The cost of the…

A: Gross profit: It implies to the profit that is earned by the business after subtracting it's direct…

Q: Sims Company regularly sells merchandise to Laurier Supply on terms 2/15, n/30 and records sales at…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Coronado Industries made a $26000 sale on account with the following terms: 3/10, n/30. If the…

A: The answer is as fallows

Q: Abbey Co. sold merchandise to Gomez Co. on account, $33,500, terms 2/15, net 45. The cost of the…

A: Net sales = Gross sales - Sales returns and allowance - Sales discount = $33,500 - $2,800 -…

Q: On 12th January 2018, Megamart company grants an allowance to a Max traders, a customer of RO 2,600…

A: Sales allowance is reduction of price when customer keep the product but he is not satisfied with…

Q: Lamps Unlimited, a wholesaler, sold several crates of lighting for $3,100 on account, to a customer…

A: Credit terms of 2/20, n/60 indicates:- If the payment made within the 20 days, 2% discount will be…

Q: Barans Company purchased merchandise on account from a supplier for $13,000, terms 2/10, n/30.…

A: In case of no information for inventory system, the perpetual method is inventory is assumed. Using…

Q: On June 10, Splish Brothers Company purchased $6,700 of merchandise from Sunland Company, on…

A: Financial transactions are tracked via journal entries. You insert transaction details into your…

Q: 1. During the year, Fall Company purchased merchandise having a gross invoice cost of P1,000,000.…

A: There are different methods of recording the inventory transaction.

Q: On November 1, Al Ain Systems purchases merchandise for $1,500 on credit with terms of 2/5, n/30,…

A:

Q: Hall Inc. made a $30,000 sale on account with the following terms: 2/10, n/30. If the company uses…

A: In case of net method, the sales discount is not recorded only the net amount will be recorded in…

Q: Schofield Co. sold merchandise on account to Bernard Retail Inc. for $15,000, terms 2/10, n/30. The…

A: Merchandise inventory refers to the cost of goods that are readily available for sale at some random…

Q: Humble Co. sells merchandise on credit to Wise Co in the amount of P9,600. The invoice is dated on…

A: ''1/ 15'' means the buyer can take 1 % discount advantages,if he pays the dues with in 15 days/

Q: ABC Company sold merchandise with P10,000 list price, subject to trade discount of 25%, and is paid…

A: 2/10 net 30 means 2% discount will be there if payment is made with in 10 days and no discount after…

Q: - Company purchased merchan paid $200 freight and sent Well harge of $200. Wellgrow uses t returned…

A: February 19: merchandise inventory account Dr$5200 To account payable$5200 (Being amount payable…

Q: Salada Inc. sold merchandise for cash totaling $12,860 which includes 8.5% sales taxes. Journalize…

A: Journal Entries Record All Business Transactions In Accounting Journal. It Is The First Step Of…

Q: XYZ Company purchased inventory worth $50,000 on credit terms of 2/10, n/30. Calculate the amount…

A: The discount period refers to a specific timeframe during which a buyer can avail themselves of a…

Q: Abbey co. Sold merchandise to gomez co. On account, $46000, terms 2/15, net 45. The cost of…

A: Gross profit is the profit earned by the entity after considering the cost of merchandise sold. It…

Q: 1. During the year, Fall Company purchased merchandise having a gross invoice cost of P1,000,000.…

A: As per the net method for recording journal entries, the sales and purchase transactions are…

Q: Abbey Co. sold merchandise to Gomez Co. on account, $35,000, subject to a sales tax of 5%.  The cost…

A: Sales tax payable = Sales x sales tax rate

Q: On March 25, Osgood Company sold merchandise on account, $2,900, terms n/30. The applicable sales…

A: Term n/30 means the buyer of the merchandise is required to pay the full amount of invoice without…

Q: Merchandise with a list price of $4,200 and costing $2,300 is sold on account, subject to the…

A: Solution: a) & b) Date Particulars Debit Credit   Account Receivable A/c 4,200       To…

Q: What is the entry on Kiner's books to record the payment of the invoice within the discount period?

A: In the normal course of business, Business Entities allow credit to their customers on some terms…

Q: On January 1, a company made a sale of $87,500, on credit. If the credit terms were 2/10, n/30, what…

A: Sales discounts: The merchandisers offer a reduction in sales price on initial sales, to accelerate…

Q: Abbey Co. sold merchandise to Gomez Co. on account, $35,000, terms 2/15, net 45. The cost of the…

A: Step 1: Introduction to Gross Profit:Gross profit refers to the amount of profit that remains after…

Q: Presented below are transactions related to Star Company. On June 4, Star Company sold OMR670,000 of…

A: Introduction: Journals: Recording of a business transactions in a chronological order. first step in…

Q: A retailer purchases some merchandise with an invoice price of $19,900 and terms of sale of 5/15,…

A: Discount on sales value: When the customer pays the amount within discount period then customer is…

Q: On March 12, Fret Company sold merchandise in the amount of $9,400 to Babson Company, with credit…

A: A perpetual inventory system is used to track the flow of inventory in real time through a business,…

Q: On March 1, ZCX company made a sale of $87,500, on credit. If the credit terms were 2/10, n/30, what…

A: Lets discus basic things. Seller for the purpose of getting early payment from the buyer, gives the…

Q: The following transactions are for Skysong Company. 1.   On December 3, Skysong Company sold…

A: Journalize the given entries:

Q: Kurt Company purchased $5,000 of merchandise from Marilyn Company with terms of 2/10, n/40. What…

A: Step 1 Discount is a benefit made available to the buyer by the seller for making payment against…

Q: On December  1, BCX company made a sale of $87,500, on credit. If the credit terms were 2/10, n/30,…

A: The discount is given to the customers so as to receive payment from customers on the early basis.

Q: Levine Company uses the perpetual inventory system. Apr. 8 Sold merchandise for $9,800…

A: 1. Journal Entries - Journal Entries are records of the company transactions. It is recorded in the…

Q: Leni Company regularly buys merchandise from Lmao Company and is allowed trade discounts of 15% and…

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

Q: nces Levine Company uses the perpetual inventory system. April 8 Sold merchandise for $8,500 (that…

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

Q: On October 12, Equipment Incorporated sells $53,000 worth of equipment on account to a credit…

A:

Q: Summit Company sold merchandise on account to Beartooth Co., $59,500, terms FOB shipping point,…

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

Q: On December 15, 2022, ABC Company purchased merchandise from DEF Company with trade discounts of 10%…

A: Gross method and Net method are two methods used for accounting of purchase of inventories. Under…