When should revenue from the sale of merchandise normally be recognized? (Assume the company reports using ASPE.) a.When the customer takes possession of the merchandise, if sold for cash, or when payment is received, if sold on credit. b.When the customer pays for the merchandise. c.Either on the date the customer takes possession of the merchandise or on the date on which the customer pays. d.When the customer takes possession of the merchandise.

Q: The business needs to record the trade discount in the book of account”. Question Do you agree…

A: Discount means the amount which is not required to be paid or received. Discount is deducted to find…

Q: 29 - How are purchase refunds recorded to which account? A) From the purchase to the debt of the…

A: Purchase returns are always in a nature of returns made to the sellers and thus decreasing the…

Q: With the accrual basis of accounting, revenue from a credit sale is recognized Multiple Choice…

A: Accrual basis of accounting: Accrual basis of accounting refers to recognizing the expenses and…

Q: Which of the following will be called as an expense of a Merchandise business? a. Sale of…

A: a.) Sale of merchandise inventory means sales of goods so it is and income. b.) Trade discount is…

Q: The seller collects sales taxes from the customer at the time of sale and reports the sales taxes as…

A: Sales tax: When the one person sold goods to another person for the business or resold purpose then…

Q: Identify if the two statements are either true or false. 1. The bill of lading is a document…

A: The given statement answer is given in the below step.

Q: When a product is sold on credit, which account should be debited for the seller? A.cash…

A: Sale of a product means to sell the goods in stock to the customer. It can be sold either on cash or…

Q: Sales are recognized as earned revenue when a)Cash is received from credit sales b)An order is…

A: The revenue recognition is one among the various generally accepted accounting principles (GAAP).…

Q: If merchandise purchased on account is returned, the buyer may inform the seller of the details by…

A: Given, Goods are purchased by-merchandise is returned.

Q: What is the account title used for revenue when goods are delivered to customers?

A: Account title: An account title is a unique name assigned to an account in an accounting system. An…

Q: What effects on a retail store's accounting equation occur when merchandise returned by customers is…

A: Introduction:- The following Accounting Equation used for preparation of balance sheet as follows…

Q: When does a company typically recognize revenue for a bill-and-hold sale?

A: Bill and hold agreements represent a sales arrangement in which the buyer pays for the item or items…

Q: Which of the following is correct when a company uses the net price method of recording receivables?…

A: Under net method, the sales are initially recorded with the net amount after deducting the amount of…

Q: Match the accounting term with its correct definition. Question 1 options: 1. contains deductions…

A: Introduction:Periodic Inventory:The periodic inventory system is based on periodic reviews and…

Q: When a customer (buyer) returns merchandise purchased on credit,what is to be done?

A: Sales Returns: It is the merchandise returned by a buyer to a seller due to many reasons like excess…

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A: Payment term used to show who is responsible for paying for shipping and when the title of the goods…

Q: Due to this accounting principle I postpone the moment I reveal expenses on my goods to the moment I…

A: Principle means the fundamental upon which the books of account are prepared.

Q: 4. Which of the following accounts are used when recording a purchase?

A: 1. If Cash purchase: If the purchase is made out of cash, both cash and inventory accounts are used…

Q: What is another name for the bill that the seller sends to the buyer when the buyer purchases…

A: Solution: Purchase order is prepared and sent by buyer to seller while placing an order. Receiving…

Q: Which account does a merchandiser use that a service company does not use? a. Cost of Goods Sold b.…

A:

Q: Larkspur Golf Stores, Inc. operates a chain of golf equipment stores in the Western United States.…

A: Journal is the book of original entry in which all the transactions of the business are recorded…

Q: Explain “Sales Returns and Allowances”. Why does this account have a normal debit balance?

A: Sales Returns and Allowances Sales Return and Allowances is actually a contra revenue account (i.e.…

Q: How would you find the invoice amount of merchandise that was returned in

A: When the merchandise is returned, The invoice amount of return will be credited to the customer's…

Q: When recording a purchase of inventory on credit, which accounts are typically affected? A) Debit…

A: When assets or expenses increases it should be debited and when decreases it should be…

Q: Revenue is properly recognized:  (Hint: What is Revenue Recognition principle?) Group of answer…

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Q: For sellers of goods, the revenue recognition principle generally requires that revenues be recorded…

A: The objective of the question is to understand when the revenue recognition principle allows sellers…

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A: Journal entries are made to record the transactions as the first process in the books of accounts…

Q: Briefly explain the accounting treatment for sales returns and allowances. Where are these accounts…

A:

Q: What do you call to a document issued when you purchase or sold on account (credit basis)? 2. It is…

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Q: Requirement a. What are the accounting requirements for a correct sales​ cutoff?     A. A shipment…

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Q: 6) Which of the following are the normal baiances of Sales, Sales discounts, and Sales returms and…

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Q: which two accounts are used to recognize shipping charges for a buyer assuming the buyer purchases…

A: Shipping cost depends upon the terms of the contract. Generally, there are two types of conditions.…

Q: Please tell us about Sales Discounts.  Why are they necessary?  Does this account appear on the…

A: Discount is the amount of reduction in the value of sale or purchase. In other words, discount in…

Q: a. Explain TWO differences between the perpetual and the periodic systems.  b. How do we record a…

A: Perpetual Inventory System : In this system, inventory is tracked continuously at each movement. The…

Q: In e-commerce accounting, what is the appropriate treatment for recognizing revenue from the sale of…

A: The appropriate treatment for recognizing revenue from the sale of goods when using the accrual…

Q: he entry to record the sale of goods on account uses a perpetual system and comprises a

A: Here is the Answer:

Q: The price a business pays for goods it purchases to sell is called: A. markup B. purchase price C.…

A: Any item that is displayed for sale and intended to be sold to customers in exchange for a profit is…

Q: 3. Give at least one example of each Merchandise transaction for a) Receipt b) Sales Invoice…

A: Merchandise transaction means transaction related to purchase and sale of inventory.

Q: Decreases in the seller's receivable from a customer's return of merchandise or from granting the…

A: Seller is the person who sells goods and services to customers. Customers are the persons who buys…

Q: For a Credit Invoice Received, which entry should be made?   debit to sales returns and…

A: Journal entry is the process of recording the business transactions in the books of accounts for the…

Q: inventory that it previously purchased. The entry to record that transaction should be: Group of…

A: The journal entries are prepared to record daily transactions of the business.

Q: How do you determine the invoice of merchandise returned?

A: Merchandise return refers to the inventory that is returned by the customer to the seller for their…

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