You are the store manager for The Bedding Warehouse. The invoice below is due for payment to one of your vendors, Hamilton Mills. Invoice Table INVOICE No. 49485 Hamilton Mills INVOICE DATE 115 Rock Creek Road July 9, 20XX CUSTOMER'S Charlotte, North Carolina 28235 ORDER NO. 49485 SOLD TO: SHIP TO: The Bedding Warehouse 406 Maple Road Franklin, VA 23851 SAME SALESMAN SHIPPED VIA Federal Express F.O.B. Charlotte, N.C. TERMS Net 30 Days QTY. ORDERED QTY. SHIPPED DESCRIPTION UNIT AMOUNT 44 Sheets, king $45.10 $1,984 40 ea. 65 Sheets, queen $39.60 $2,574 00 ea. 28 pkg. Pillow Cases, queen $17.85 $449 80 55 pkg. Pillow Cases, std. $17.35 $954 25 6 Shams $33.25 $299 50 ea. INVOICE SUBTOTAL $6,261.95 $133.50 SHIPPING CHARGES Insurance $23.35 INVOICE TOTAL $6,418.80 (a) You notice several errors in the itemization of the invoice. Correct the errors in the itemization by completing the following table (in $). QTY. Ordered QTY. Shipped Description Unit Amount 44 ea. Sheets, king $45.10 24 65 ea. Sheets, queen $39.60 28 pkg. Pillow Cases, queen $17.85 24 55 pkg. Pillow Cases, std. $17.35 6. ea. Shams $33.25 2$ Invoice Subtotal Shipping Charges $133.50 Insurance $23.35 Invoice Total 2$ (b) Your warehouse manager reports that there were four king-size sheets and two queen-size sheets returned, along with three packages of queen pillow cases. Calculate the revised total due (in $). (c) The vendor has offered a 8% early payment discount that applies only to the merchandise, not the shipping or insurance. What is the amount of the discount (in $)? (Round your answer to the nearest cent.) $ (d) What is the new balance due after the discount (in $)? (Round your answer to the nearest cent.)
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
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