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(a)
Sales discounts:
The term
Sale revenue recognition and the collection from the sales revenue are two different things because the sale revenue includes outstanding sales whereas the collection from the sales excludes advancement payments.
To compute:
The calculation of sales revenue for
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Answer to Problem 63E
The sales revenue for the year
Explanation of Solution
The Citron Mechanical Systems sold on credit for
The sales revenue for the year
Thus, the revenue for the Citron Mechanical Systems is
(b)
Sales discounts:
The term
Sale revenue recognition and the collection from the sales revenue are two different things because the sale revenue includes outstanding sales whereas the collection from the sales excludes advancement payments.
To calculate:
The amount of cash collected from these sales.
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Answer to Problem 63E
The amount of cash collected from these sales is
Explanation of Solution
The Citron Mechanical Systems sold on credit for
Sale Revenue within discount period | |
Less: Discount @ 1% | |
Collection | |
Collection from sales after discount | |
Collection from Sales |
(c)
Sales discounts:
The term
Sale revenue recognition and the collection from the sales revenue are two different things because the sale revenue includes outstanding sales whereas the collection from the sales excludes advancement payments.
The
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Answer to Problem 63E
The entry for recoding the entry of sales and cash collection is made properly.
Explanation of Solution
The Citron Mechanical Systems sold on credit for
Date | Particulars | Debit | Credit |
Sale Revenue | |||
(Sale on Credit with terms |
|||
Cash | $6,82,680 | ||
Sales Discount |
|||
Accounts Receivable | |||
(Cash collected from accounts receivable) |
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Chapter 5 Solutions
Cornerstones of Financial Accounting
- Duo Corporation is evaluating a project with the following cash flows: Year 0 1 2 3 Cash Flow -$ 30,000 12,200 14,900 16,800 4 5 13,900 -10,400 The company uses an interest rate of 8 percent on all of its projects. a. Calculate the MIRR of the project using the discounting approach. Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. Calculate the MIRR of the project using the reinvestment approach. Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. c. Calculate the MIRR of the project using the combination approach. Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. Discounting approach MIRR b. Reinvestment approach MIRR c. Combination approach MIRR % % %arrow_forwardHello tutor please provide this question solution general accountingarrow_forwardGet correct answer accounting questionsarrow_forward
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- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
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