Answered: Wholesalers

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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Question

As part of the employment interview for an accounting job at Sound Design, you have been asked to answer the questions below, based on an invoice from one of Sound Design's vendors, Target Electronic Wholesalers.

Invoice

Stock #	Description	Unit Price	Amount
4811V	Stereo Receivers	50 ✕ $291.50 =	_______________________
511CX	Blu-Ray Players	25 ✕ $139.28 =	_______________________
6146M	Home Theater Systems	40 ✕ $659.12 =	_______________________
1031A	LCD TVs	20 ✕ $598.00 =	_______________________

Merchandise Total	_______________________
Insurance + Shipping	$1,250.00
Invoice Total	_______________________

An invoice. The top of the invoice is divided into several distinct sections.

The first section is located in the top left of the invoice, is unlabeled, and contains an image of a target with an arrow in the center of the target.
The second section is located in the top center of the invoice, is unlabeled, and contains "Target Electronic Wholesalers 1979 N.E. 123 Street Jacksonville, FL 32204."
The third section is located below the first, is labeled "Sold To:," and contains "Sound Design 480 McDowell Rd. Phoenix, AZ 85008."
The fourth section is located to the right of the third, is unlabeled, and contains "Invoice Date June 28, 20XX" and "Terms of Sale 3/15, n/30 ROG."

The bottom of the invoice contains the itemization of the invoice. Information regarding this itemization can be found in the adjacent table.

Table

(a)

Complete the invoice itemization by finding the total amount (in $) for each item, the merchandize total (in $), and the total amount of the invoice (in $).

Stock #	Description	Unit Price	Amount
4811V	Stereo Receivers	50 x $291.50	$
511CX	Blu-Ray Players	25 x $139.28	$
6146M	Home Theater Systems	40 x $659.12	$
1031A	LCD TVs	20 x $598.00	$
Merchandise Total	$
Insurance + Shipping	$
Invoice Total	$

(b)

What are the discount date and the net date if the shipment arrived on July 13?

Discount Date Net Date

(c)

While in transit, five Blu-ray players and four LCD TVs were damaged and will be returned. What is the amount (in $) of the returned merchandise? What is the revised merchandise total (in $)?

Returned merchandise$ Revised merchandise total$

(d)

What are the amount (in $) of the cash discount and the net amount due if the discount is taken? (Round your answers to the nearest cent.)

Cash discount$ Net amount due$

(e)

If Sound Design sends in a partial payment of $40,000.00 within the discount period, what is the net balance (in $) still due? (Round your answer to the nearest cent.)

Expert Solution

Step 1: a.finding the total amount (in $) for each item, the merchandize total (in $), and the total amount

Total amount of each item

Stereo Receivers: 50 x $291.50 = $14,575.00

Blu-Ray Players: 25 x $139.28 = $3,482.00

Home Theater Systems: 40 x $659.12 = $26,364.80

LCD TVs: 20 x $598.00 = $11,960.00

Merchandise Total = $14,575.00 + $3,482.00 + $26,364.80 + $11,960.00 = $56,381.80

insurance and shipping $1,250

Invoice value = $56,381.80 + $1,250.00 = $57,631.8

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