Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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Question
Chapter 5, Problem 37E
a.
To determine
Record August month sales transactions using the gross method of recording sales discounts.
b.
To determine
Record August month sales transactions using the net method of recording sales discounts.
c.
To determine
Determine the amount of total sales under each method.
d.
To determine
Identify the method of recording sales discount which requires an end-of-period
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Appendix 1: Gross method for sales discounts
Schofield Co. sold merchandise on account to Bernard Retail Inc. for $15,000, terms 2/10, n/30. The cost of the merchandise sold was $8,000. Assuming Schofield Co. uses the gross method of recording sales discounts.
a. Journalize the entries to record (1) the sale, including (2) the cost of the goods sold. If an amount box does not require an entry, leave it blank.
(1)
Accounts Receivable-Bernard Retail Inc.
fill in the blank 4fb061045fa8004_2
fill in the blank 4fb061045fa8004_3
Sales
fill in the blank 4fb061045fa8004_5
fill in the blank 4fb061045fa8004_6
(2)
Cost of Goods Sold
fill in the blank 4fb061045fa8004_8
fill in the blank 4fb061045fa8004_9
Inventory
fill in the blank 4fb061045fa8004_11
fill in the blank 4fb061045fa8004_12
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a. Two entries are required: (1) for the sale on the account and (2) to record the cost of the merchandise sold and the decrease in inventory in the seller's…
Journalize the following merchandise transactions:
a. Sold merchandise on account, $12,700, with terms 2/10, net 30. The cost of the merchandise sold was $8,255.
Sale
Cost
b. Received payment within the discount period.
Question Content Area
Based on the following data for the current year, what is the number of days' sales in receivables (rounded to one decimal place)? Assume 365 days a year.
Sales on account during year
$591,010
Cost of merchandise sold during year
158,044
Accounts receivable, beginning of year
44,597
Accounts receivable, end of year
46,544
Merchandise inventory, beginning of year
92,783
Merchandise inventory, end of year
119,254
Chapter 5 Solutions
Financial And Managerial Accounting
Ch. 5 - Prob. 1DQCh. 5 - Can a business earn a gross profit but incur a net...Ch. 5 - The credit period during which the buyer of...Ch. 5 - What is the meaning of (A) 1/15, n/60; (B) n/30;...Ch. 5 - How are sales to customers using MasterCard and...Ch. 5 - What is the nature of (A) a credit memo issued by...Ch. 5 - Who is responsible for freight when the terms of...Ch. 5 - Name three accounts that would normally appear in...Ch. 5 - Audio Outfitter Inc., which uses a perpetual...Ch. 5 - Assume that Audio Outfitter Inc. in Discussion...
Ch. 5 - Gross profit During the current year, merchandise...Ch. 5 - Purchases transactions Elkhorn Company purchased...Ch. 5 - Prob. 3BECh. 5 - Freight terms Determine the amount to be paid in...Ch. 5 - Transactions for buyer and seller Shore Co. sold...Ch. 5 - Adjusting entries Hahn Flooring Company uses a...Ch. 5 - Asset turnover ratio Financial statement data for...Ch. 5 - Determining gross profit During the current year,...Ch. 5 - Determining cost of goods sold For a recent year,...Ch. 5 - Chart of accounts Monet Paints Co. is a newly...Ch. 5 - Purchase-related transactions The Stationery...Ch. 5 - Purchase-related transactions A retailer is...Ch. 5 - Purchase-related transactions The debits and...Ch. 5 - Prob. 7ECh. 5 - Purchase-related transactions Journalize entries...Ch. 5 - Sales-related transactions, including the use of...Ch. 5 - Customer refund Senger Company sold merchandise of...Ch. 5 - Prob. 11ECh. 5 - Prob. 12ECh. 5 - Sales-related transactions The debits and credits...Ch. 5 - Prob. 14ECh. 5 - Determining amounts to be paid on invoices...Ch. 5 - Sales-related transactions Showcase Co., a...Ch. 5 - Purchase-related transactions Based on the data...Ch. 5 - Prob. 18ECh. 5 - Prob. 19ECh. 5 - Normal balances of accounts for retail business...Ch. 5 - Income statement and accounts for retail business...Ch. 5 - Adjusting entry for inventory shrinkage Omega Tire...Ch. 5 - Adjusting entry for customer refunds, allowances,...Ch. 5 - Adjusting entry for customer refunds, allowances,...Ch. 5 - Income statement for retail business The following...Ch. 5 - Determining amounts for items omitted from income...Ch. 5 - Multiple-step income statement On March 31, 20Y9,...Ch. 5 - Multiple-step income statement The following...Ch. 5 - Single-step income statement Summary operating...Ch. 5 - Closing the accounts of a retail business From the...Ch. 5 - Closing entries; net income Based on the data...Ch. 5 - Closing entries On July 31, the close of the...Ch. 5 - Prob. 33ECh. 5 - Prob. 34ECh. 5 - Appendix 1 Adjusting entry for gross method The...Ch. 5 - Appendix 1 Discount taken in next fiscal year...Ch. 5 - Prob. 37ECh. 5 - Rules of debit and credit for periodic inventory...Ch. 5 - Journal entries using the periodic inventory...Ch. 5 - Identify items missing in determining cost of...Ch. 5 - Cost of goods sold and related items The following...Ch. 5 - Cost of goods sold Based on the following data,...Ch. 5 - Cost of goods sold Based on the following data,...Ch. 5 - Appendix 2 Cost of goods sold Identify the errors...Ch. 5 - Closing entries using periodic inventory system...Ch. 5 - Purchase-related transactions using perpetual...Ch. 5 - Sales-related transactions using perpetual...Ch. 5 - Sales and purchase-related transactions using...Ch. 5 - A Sales and purchase-related transactions for...Ch. 5 - Multiple-step income statement and balance sheet...Ch. 5 - Single-step income statement and balance sheet...Ch. 5 - Appendix 2 Purchase-related transactions using...Ch. 5 - Sales and purchase-related transactions using...Ch. 5 - Appendix 2 PR 5-9A Sales and purchase-related...Ch. 5 - 2. Net income, 185,000 Appendix 2 PR 5-10A...Ch. 5 - Purchase-related transactions using perpetual...Ch. 5 - Sales-related transactions using perpetual...Ch. 5 - Sales and purchase-related transactions using...Ch. 5 - Sales and purchase-related transactions for seller...Ch. 5 - Multiple-step income statement and balance sheet...Ch. 5 - Single-step income Statement and balance sheet...Ch. 5 - Purchase-related transactions using periodic...Ch. 5 - Sales and purchase-related transactions using...Ch. 5 - Appendix 2 Sales and purchase-related transactions...Ch. 5 - Appendix 2 PR 5-10B Periodic inventory accounts,...Ch. 5 - Palisade Creek Co. is a retail business that uses...Ch. 5 - Analyze and compare Amazon.com and Netflix...Ch. 5 - Analyze Dollar General Dollar General Corporation...Ch. 5 - Compare Dollar Tree and Dollar General The asset...Ch. 5 - Analyze and compare CSX, Union Pacific, and YRC...Ch. 5 - Analyze Home Depot The Home Depot (HD) reported...Ch. 5 - Analyze and compare Kroger and Tiffany The Kroger...Ch. 5 - Prob. 7MADCh. 5 - Ethics in Action Margie Johnson is a staff...Ch. 5 - Prob. 2TIFCh. 5 - Prob. 5TIFCh. 5 - Prob. 6TIFCh. 5 - Prob. 7TIF
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