The debits and credits from four related transactions, (1) through (4), are presented in the following T accounts. Assume that the freight terms were FOB credit terms were 1/10, n/30. Cash (2) (4) Inventory Feedback 13,860 (3) 150 (1) (2) a. Describe each transaction. 1. Purchased merchandise on account net of discount. ✓ 2. Paid freight. ✓ 3. An allowance for return of merchandise was granted by the creditor. 4. Paid the balance due within the discount period. ✓ b. Determine the invoice amount of the merchandise that was returned in (3). 150 11,880 (3) 1,980 Accounts Payable 1,980 11,880 ✓ (1) 13,860 Check My Work Find the debit and credit(s) for each transaction and then consider the cause of each. Keep in mind that these are the records of a purchaser.

The debits and credits from four related transactions, (1) through (4), are presented in the following T accounts. Assume that the freight terms were FOB credit terms were 1/10, n/30. Cash (2) (4) Inventory Feedback 13,860 (3) 150 (1) (2) a. Describe each transaction. 1. Purchased merchandise on account net of discount. ✓ 2. Paid freight. ✓ 3. An allowance for return of merchandise was granted by the creditor. 4. Paid the balance due within the discount period. ✓ b. Determine the invoice amount of the merchandise that was returned in (3). 150 11,880 (3) 1,980 Accounts Payable 1,980 11,880 ✓ (1) 13,860 Check My Work Find the debit and credit(s) for each transaction and then consider the cause of each. Keep in mind that these are the records of a purchaser.

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

Determine the amount to be paid in full settlement of each invoice, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Freight Paid Returns and Merchandise by Seller Freight Terms Allowances a. $11,200 $224 FOB Shipping Point, 1/10, net 30 $1,100 b. $3,900 $56 FOB Destination, 2/10, net 45 $900 a. 2$ b.
A sales invoice included the following information: merchandise price, $11,800; terms 1/10, n/eom; FOB shipping point with prepaid freight of $560 added to the invoice. Assuming that a credit for merchandise returned of $2,400 is granted prior to payment and that the invoice is paid within the discount period, what is the amount of cash that should be received by the seller? O $11,800 O $12,236 O S2400 O $9,866 Previous Next 6:28 PM 3/22/20 38) II
Pierce Company sold merchandise to Stanton Company on account FOB shipping point, 2/10, net 30, for $11,600. Pierce prepaid the $221 shipping charge. Which of the following entries does Pierce make to record this sale? a.Accounts Receivable—Stanton, debit $11,600; Sales, credit $11,600 b.Accounts Receivable—Stanton, debit $11,821; Sales, credit $11,821 c.Accounts Receivable—Stanton, debit $11,600; Sales, credit $11,600, and Delivery Expense, debit $221; Cash, credit $221 d.Accounts Receivable—Stanton, debit $11,368; Sales, credit $11,368, and Accounts Receivable—Stanton, debit $221; Cash, credit $221
A sales invoice included the following information: merchandise price, $9,000; terms 1/10, n/eom; FOB shipping point with prepaid freight of $496 added to the invoice. Assuming that a credit for merchandise returned of $1,800 is granted prior to payment and that the invoice is paid within the discount period, what is the amount of cash that should be received by the seller?
Determining Amounts to be Paid on Invoices Determine the amount to be paid in full settlement of each of the following invoices, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Merchandise Freight Paid by Seller Returns and Allowances a. $17,000 - FOB destination, n/30 $900 b. 10,300 $400 FOB shipping point, 1/10, n/30 1,200 c. 6,300 - FOB shipping point, 1/10, n/30 600 d. 2,500 100 FOB shipping point, 2/10, n/30 400 e. 1,700 - FOB destination, 2/10, n/30 - a. $ b. $ c. $ d. $ e. $
Determining Amounts to be Paid on Invoices Determine the amount to be paid in full settlement of each of the following invoices, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period: Merchandise Freight Paid by Seller Customer Returnsand Allowances a. $17,200 - FOB destination, n/30 $900 b. 11,400 $500 FOB shipping point, 2/10, n/30 1,400 c. 8,100 - FOB shipping point, 1/10, n/30 700 d. 3,700 100 FOB shipping point, 1/10, n/30 500 e. 2,500 - FOB destination, 1/10, n/30 - a. $ b. $ c. $ d. $ e. $
Presented below are transactions related to Bramble, Inc. May 10 (a) 11 19 24 Purchased goods billed at $15,200 subject to cash discount terms of 2/10, n/60. Purchased goods billed at $11,800 subject to terms of 1/15, n/30. Paid invoice of May 10. Purchased goods billed at $12,300 subject to cash discount terms of 2/10, n/30. Prepare general journal entries for the transactions above under the assumption that purchases are to be recorded at net amounts after cash discounts and that discounts lost are to be treated as financial expense. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.)
reight Terms Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Merchandise FreightPaid by Seller Freight Terms Returns andAllowances a. $90,000 $1,000 FOB shipping point, 1/10, n/30 $15,000 b. 110,000 1,575 FOB destination, 2/10, n/30 8,500
Merchandise with a sales price of $5,700 is sold on account with terms 2/10, n/30. The journal entry to record the sale would include a Oa. debit to Accounts Receivable for $5,566 Ob. credit to Sales for $5,586 Oc. debit to Sales Discounts for $114 Od. debit to Cash for $5,700 券
Consider the following financial statement information: Item Beginning Year Ending Inventory € 9.780 € 11.380 € 4.108 € 4.938 € 7.636 € 7.927 Accounts Receivable Accounts Payable Credit Sales Cost of Goods Sold € 89.804 € 56.384 Calculate the operating and cash cycles. How do you interpret your answer?
Merchandise is purchased for $3,300 on September 2 subject to terms of 2/10, n/30, FOB destination. Freight costs paid by the seller totaled $193. What is the cost of the merchandise if paid on September 12, assuming the discount is taken? Oa. $3,493 Ob. $3,559 Oc. $3,234 Od. $3,168
The entry to record the sale of $20,000 of merchandise on account with cost of $14,000, would include: a. credit to accounts receivable for $14,000 b. debit to accounts receivable for $20,000 c. debit to cost of goods sold for $20,000 d. credit to inventory for $20,000