To determine Compute the net sales for the two months ended December 31. Explanation Sales: Sales are an activity of selling the merchandise inventory of a business. Sales discount is the amount given as concession to the buyer by the seller for prompt payments. In the case of sales discount, the goods are in the possession of the seller. Credit card sales: Credit card is an electronic card, which allows the credit card holders to buy something on credit conveniently, and without paying immediate cash. Businesses allow customers to buy its products through its own credit cards or bank credit cards, such sales are termed as credit card sales. For such convenience, bank charges some percentage as service charge expense on the total value of goods or services purchased on credit. Sales returns and allowance: It is the amount allowed as concession by the seller to the buyer for accepting the defective or damaged goods is known as sales allowance. Calculate total sales revenue for two months ended December 31. Sales Amount ($) Amount ($) Sales revenue on November 20 th 5,500 Sales revenue on November 25 th 400 Less: Credit card discounts of 2% (1) (8) 392 Sales revenue on November 28 th 9,000 Less: Sales return (2) (900) Less: Sales discounts of 3% (3) (243) 7,857 Total sales revenue 13,749 Table (1) Working Notes: (1) Calculate credit card discount of 2% for the amount of $400 collected from C. Credit card discount = Sales × 2% charges = $400 × 2 % = $8 (2) Calculate sales returns for the amount of $9,000 from D

10th Edition

ISBN: 9781260696295

Author: Libby

Publisher: MCG

See similar textbooks

Concept explainers

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.

Videos

Question

Chapter 6, Problem 3E

To determine

Compute the net sales for the two months ended December 31.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 6, Problem 2E

Chapter 6, Problem 4E

Chapter 6 Solutions

FINANCIAL ACCOUNTING (LL)-W/CONNECT

Ch. 6 - Prob. 1Q Ch. 6 - 2. What is gross profit or gross margin on sales?...Ch. 6 - Prob. 3Q Ch. 6 - Prob. 4Q Ch. 6 - Prob. 5Q Ch. 6 - 6. Differentiate accounts receivable from notes...Ch. 6 - 7 Which basic accounting principle is the...Ch. 6 - 8. Using the allowance method, is bad debt expense...Ch. 6 - 9. What is the effect of the write-off of bad...Ch. 6 - 10. Does an increase in the receivables turnover...

Ch. 6 - Prob. 11Q Ch. 6 - Prob. 12Q Ch. 6 - Prob. 13Q Ch. 6 - Prob. 14Q Ch. 6 - Prob. 15Q Ch. 6 - Prob. 1MCQ Ch. 6 - 2. Gross sales total $300,000, one-half of which...Ch. 6 - 3. A company has been successful in reducing the...Ch. 6 - 4. When a company using the allowance method...Ch. 6 - 5. You have determined that Company X estimates...Ch. 6 - Prob. 6MCQ Ch. 6 - Prob. 7MCQ Ch. 6 - 8. When using the allowance method, as bad debt...Ch. 6 - 9. Which of the following best describes the...Ch. 6 - Prob. 10MCQ Ch. 6 - Prob. 1ME Ch. 6 - Reporting Net Sales with Sales Discounts. Credit...Ch. 6 - Recording Bad Debts Prepare journal entries for...Ch. 6 - Determining Financial Statement Effects of Bad...Ch. 6 - Determining the Effects of Credit Policy Changes...Ch. 6 - Prob. 6ME Ch. 6 - Prob. 7ME Ch. 6 - During the months of January and February, Hancock...Ch. 6 - E6-2 Reporting Net Sales with Credit Sales, Sales...Ch. 6 - The following transactions were selected from...Ch. 6 - Griffin Shoe Company records Sales Returns and...Ch. 6 - Evaluating the Annual Interest Rate Implicit in a...Ch. 6 - Assume that on June 30, Dell sells a laptop...Ch. 6 - Assume that Verizon normally sells a Samsung S9...Ch. 6 - Reporting Bad Debt Expense and Accounts...Ch. 6 - Recording Bad Debt Expense Estimates and...Ch. 6 - Recording Bad Debt Expense Estimates and...Ch. 6 - Determining Financial Statement Effects of Bad...Ch. 6 - Recording and Determining the Effects of Bad Debt...Ch. 6 - Computing Bad Debt Expense Using Aging...Ch. 6 - Recording and Reporting a Bad Debt Estimate Using...Ch. 6 - Recording and Reporting a Bad Debt Estimate Using...Ch. 6 - Siemens is one of the world’s largest electrical...Ch. 6 - Wolverine World Wide designs and markets Merrell,...Ch. 6 - Inferring Bad Debt Write-Offs and Cash Collections...Ch. 6 - Microsoft develops, produces, and markets a wide...Ch. 6 - A recent annual report for CVS contained the...Ch. 6 - Recording, Reporting, and Evaluating a Bad Debt...Ch. 6 - Recording, Reporting, and Evaluating a Bad Debt...Ch. 6 - Recording, Reporting, and Evaluating a Bad Debt...Ch. 6 - A recent annual report for FedEx contained the...Ch. 6 - A recent annual report for Apple Inc. contained...Ch. 6 - Prob. 26E Ch. 6 - Prob. 27E Ch. 6 - Prob. 28E Ch. 6 - Prob. 29E Ch. 6 - Reporting Net Sales and Expenses with Discounts,...Ch. 6 - Dunkin Brands is a specialty coffee roaster and...Ch. 6 - Blue Skies Equipment Company uses the aging...Ch. 6 - Preparing an Income Statement and Computing the...Ch. 6 - Prob. 5P Ch. 6 - Prob. 6P Ch. 6 - Prob. 7P Ch. 6 - Reporting Net Sales and Expenses with Discounts,...Ch. 6 - AP6-2 Recording Bad Debts and Interpreting...Ch. 6 - Assume that Briggs & Stratton Engines Inc. uses...Ch. 6 - Preparing an Income Statement and Computing the...Ch. 6 - Prob. 5AP Ch. 6 - CON6-1 Computing Net Sales and Recording Bad Debt...Ch. 6 - Finding Financial Information Refer to the...Ch. 6 - Refer to the financial statements of Express, Inc....Ch. 6 - Refer to the financial statements of American...Ch. 6 - Prob. 4CP Ch. 6 - Prob. 5CP

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Recommended textbooks for you

FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education

FINANCIAL ACCOUNTING

Accounting

ISBN:9781259964947

Author:Libby

Publisher:MCG

Accounting

ISBN:9781337272094

Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:Cengage Learning,

Accounting Information Systems

Accounting

ISBN:9781337619202

Author:Hall, James A.

Publisher:Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis...

Accounting

ISBN:9780134475585

Author:Srikant M. Datar, Madhav V. Rajan

Publisher:PEARSON

Intermediate Accounting

Accounting

ISBN:9781259722660

Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:9781259726705

Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:McGraw-Hill Education

SEE MORE TEXTBOOKS

The management of receivables Introduction - ACCA Financial Management (FM); Author: OpenTuition;https://www.youtube.com/watch?v=tLmePnbC3ZQ;License: Standard YouTube License, CC-BY