College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN: 9781305666160
Author: James A. Heintz, Robert W. Parry
Publisher: Cengage Learning
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Chapter 11A, Problem 2RQ
To determine
Indicate the accounts that are debited under net-price method, when the cash is paid for merchandise purchased after the discount period.
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Students have asked these similar questions
Which of the following would not be reported on the financial statement?
a. Sales discount taken
b. Trade receivables
c. Trade discounts
d. Sales discounts not taken
Which account balance is NOT used to compute the cost of goods sold?
a.Merchandise Inventory
b.Purchases
c.Sales
d.Purchases Discounts
What type of accounts are Sales Returns and Allowances and Sales Discounts?
Chapter 11A Solutions
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
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Similar questions
- What type of account (asset, liability, etc.) is Allowance for Doubtful Accounts? What is the account used for? Do the terms FIFO and LIFO refer to techniques used in determining quantities of the various classes of merchandise on hand? Explain.arrow_forwardWhat are the reasons that a company gives trade discounts?Why are trade discounts not recorded in theaccounts like cash discounts?arrow_forwardCredit card discounts are deducted from gross sales to calculate net sales revenue. O False Truearrow_forward
- What are the advantages of using the allowance method in accounting for uncollectible accounts as compared to the direct write-off method? (please explain in details)arrow_forwardWhich of the following accounts is an example of a contra-asset?A) Cost of Goods Sold B)Sales Discounts C) Purchases D) Deferred Revenue E) LIFO Reservearrow_forwardWhich of the following is an example of a contra revenue account? A. sales B. merchandise inventory C. sales discounts D. accounts payablearrow_forward
- Which of the following accounts are used when recording the sales entry of a sale on credit? A. merchandise inventory, cash B. accounts receivable, merchandise inventory C. accounts receivable, sales D. sales, cost of goods soldarrow_forwardWhich two accounts are used to recognize shipping charges for a buyer, assuming the buyer purchases with cash and the terms are FOB Shipping Point? A. delivery expense, cash B. merchandise inventory, cash C. merchandise inventory, accounts payable D. The buyer does not record anything for shipping since it is FOB Shipping Point.arrow_forwardIf a customer pays with a credit card and the service has been provided, which of the following accounts will be used to record the sales entry for this transaction? A. Cost of Goods Sold, Merchandise Inventory, Sales Revenue B. Sales Revenue, Credit Card Expense, Accounts Receivable C. Accounts Receivable, Merchandise Inventory, Credit Card Expense D. Cost of Goods Sold, Credit Card Expense, Sales Revenuearrow_forward
- Using the percentage of sales method, the balance in Allowance for Doubtful Accounts must be taken into consideration before making the adjusting entry.arrow_forwardIs it true that, when one firm sells to another on credit, the seller recordsthe transaction as an account receivable while the buyer records it as anaccount payable and that, disregarding discounts, the receivable typicallyexceeds the payable by the amount of profit on the sale?arrow_forwardWhich of the following is an example of a contra revenue account?A. salesB. merchandise inventoryC. sales discountsD. accounts payablearrow_forward
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