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Using the following invoice answer the following questions. 1. How would this transaction be journalized by the seller? Identify the accounts, the amounts and whether the entry is a debit or credit. 2. What journal should the seller use for this transaction? EXPLAIN. 3. What is the business name of the vendor (seller)? How do you know this? 4. What is the business name of the merchandiser (buyer)? How do you know this? 5. P.O. Number stands for Purchase Order Number. What is a purchase order?

Using the following invoice answer the following questions. 1. How would this transaction be journalized by the seller? Identify the accounts, the amounts and whether the entry is a debit or credit. 2. What journal should the seller use for this transaction? EXPLAIN. 3. What is the business name of the vendor (seller)? How do you know this? 4. What is the business name of the merchandiser (buyer)? How do you know this? 5. P.O. Number stands for Purchase Order Number. What is a purchase order?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Using the following invoice answer the following questions. 1. How would this transaction be journalized by the seller? Identify the accounts, the amounts and whether the entry is a debit or credit. 2. What journal should the seller use for this transaction? EXPLAIN. 3. What is the business name of the vendor (seller)? How do you know this? 4. What is the business name of the merchandiser (buyer)? How do you know this? 5. P.O. Number stands for Purchase Order Number. What is a purchase order? Which part, buyer or seller, typically creates the purchase order? 6. Freight designation is F.O.B. Destination. Who is responsible for paying the shipper? 7. Explain what the terms of sale 2/10, n/30 represents? 8. If the merchandiser pays within 10 days of the invoice date how much will they actually pay? Explain your answer. 9. Explain why the merchandiser is not paying sales tax. 10. What information from this invoice would be entered in the Source Document column of the journal? 11. Let's assume the merchandiser (buyer) pays after the discount period expires, how will the vendor (seller) journalize the payment? Add the appropriate amount to the appropriate accounts provided below.
Module 8 Lesson 1 Assignment ABC Company SALES INVOICE 123 Main Street Wilmington, NC 28401 Phone 910.555.1212 Fax 910.555.1234 INVOICE #10 DATE: JANUARY 10, 20XX TO: SHIP TO: Accounts Payable Department Sports Emporium 991 Industry Avenue Wilmington, NC 28412 910.555.9876 Receiving Clerk Sports Emporium 991 Industry Avenue Wilmington, NC 28412 910.555.5678 COMMENTS OR SPECIAL INSTRUCTIONS: SALESPERSON P.O. NUMBER REQUISITIONER SHIPPED VIA F.O.B. POINT TERMS Overnight Express Fred Taylor 123456 Cindy Jackson Destination 2/10, n/30 UNIT PRICE ТOTAL DESCRIPTION QUANTITY $20.00 $1,000.00 50 Spalding NCAA Basketball $125.00 $1,875.00 15 Louisville Slugger Baseball Bat $65.00 $1,300.00 20 Koho Hockey Sticks SUBTOTAL $4,175.00 SALES TAX SHIPPING & HANDLING TOTAL DUE $4,175.00
Transcribed Image Text:Module 8 Lesson 1 Assignment ABC Company SALES INVOICE 123 Main Street Wilmington, NC 28401 Phone 910.555.1212 Fax 910.555.1234 INVOICE #10 DATE: JANUARY 10, 20XX TO: SHIP TO: Accounts Payable Department Sports Emporium 991 Industry Avenue Wilmington, NC 28412 910.555.9876 Receiving Clerk Sports Emporium 991 Industry Avenue Wilmington, NC 28412 910.555.5678 COMMENTS OR SPECIAL INSTRUCTIONS: SALESPERSON P.O. NUMBER REQUISITIONER SHIPPED VIA F.O.B. POINT TERMS Overnight Express Fred Taylor 123456 Cindy Jackson Destination 2/10, n/30 UNIT PRICE ТOTAL DESCRIPTION QUANTITY $20.00 $1,000.00 50 Spalding NCAA Basketball $125.00 $1,875.00 15 Louisville Slugger Baseball Bat $65.00 $1,300.00 20 Koho Hockey Sticks SUBTOTAL $4,175.00 SALES TAX SHIPPING & HANDLING TOTAL DUE $4,175.00
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