Financial Accounting
9th Edition
ISBN: 9781259222139
Author: Robert Libby, Patricia Libby, Frank Hodge Ch
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 6, Problem 6.3E
Reporting Net Sales with Credit Sales, Sales Discounts, Sales Returns, and Credit Card Sales
The following transactions were selected from among those completed by Cadence Retailers in November and December:
| Nov. | 20 | Sold 20 items of merchandise to Customer B at an invoice price of $5,500 (total); terms 3/10, n/30. |
| 25 | Sold two items of merchandise to Customer C, who charged the $400 sales price on her Visa credit card. Visa charges Cadence Retailers a 2 percent credit card fee. | |
| 28 | Sold 10 identical items of merchandise to Customer D at an invoice price of $9,000 (total); terms 3/10, n/30. | |
| 29 | Customer D returned one of the items purchased on the 28th; the item was defective, and credit was given to the customer. | |
| Dec. | 6 | Customer D paid the account balance in full. |
| 20 | Customer B paid in full for the invoice of November 20, 2013. |
Required:
Assume that Sales Returns and Allowances, Sales Discounts, and Credit Card Discounts are treated as contra-revenues; compute net sales for the two months ended December 31.
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The following transactions were selected from among those completed by Bennett Retailers in November and December:
November 20
November 25
November 28
November 29
December 6
December 20
Required:
Sold 20 items of merchandise to Customer B at an invoice price of $5,700 (total); terms 2/10,
n/30.
Sold two items of merchandise to Customer C, who charged the $700 (total) sales price on her Visa
credit card. Visa charges Bennett Retailers a 3 percent credit card fee.
Sold 10 identical items of merchandise to Customer D at an invoice price of $9,600 (total); terms
2/10, n/30.
Customer D returned one of the items purchased on the 28th; the item was defective and credit was
given to the customer.
Customer D paid the account balance in full.
Customer B paid in full for the invoice of November 20.
Assume that Sales Returns and Allowances, Sales Discounts, and Credit Card Discounts are treated as contra-revenues; compute net
sales for the two months ended December 31.
Note: Do not round your…
The following transactions were selected from among those completed by Hailey Retailers in the current year:
Nov. 20 Sold two items of merchandise to Customer B, who charged the $600 (total) sales price on her Visa credit card. Visa charges Hailey a 2 percent credit card fee.
25 Sold 14 items of merchandise to Customer C at an invoice price of $3,600 (total); terms 2/10, n/30.
28 Sold 12 identical items of merchandise to Customer D at an invoice price of $7,800 (total); terms 2/10, n/30.
30 Customer D returned one of the items purchased on the 28th; the item was defective and credit was given to the customer.
Dec. 06 Customer D paid the account balance in full.
30 Customer C paid in full for the invoice of November 25.
Required:
1. Prepare the appropriate journal entry for each of these transactions. Do not record cost of goods sold.
2. Compute Net Sales.
I just need help with the journal entry on Dec. 06 and also computing the net sales.
The following transactions were selected from among those completed by Hailey Retailers in the current year:
November 20
November 25
November 28
November 30
December 6
December 30
Sold two items of merchandise to Customer B, who charged the $590 (total) sales price on her Visa
credit card. Visa charges Hailey a 2 percent credit card fee.
Sold 14 items of merchandise to Customer C at an invoice price of $3,300 (total); terms 2/10, n/30.
Sold 12 identical items of merchandise to Customer D at an invoice price of $8,160 (total); terms
2/10, n/30.
Customer D returned one of the items purchased on the 28th; the item was defective and credit was
given to the customer.
Customer D paid the account balance in full.
Customer C paid in full for the invoice of November 25.
Required:
1. Prepare the appropriate journal entry for each of these transactions. Do not record cost of goods sold.
2. Compute Net Sales.
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Chapter 6 Solutions
Financial Accounting
Ch. 6 - Prob. 1QCh. 6 - What is gross profit or gross margin on sales? In...Ch. 6 - What is a credit card discount? How does it affect...Ch. 6 - Prob. 4QCh. 6 - Prob. 5QCh. 6 - Differentiate accounts receivable from notes...Ch. 6 - Which basic accounting principle is the allowance...Ch. 6 - Using the allowance method, is bad debt expense...Ch. 6 - Prob. 9QCh. 6 - Prob. 10Q
Ch. 6 - Prob. 11QCh. 6 - Prob. 12QCh. 6 - Prob. 13QCh. 6 - Prob. 14QCh. 6 - Briefly explain how the total amount of cash...Ch. 6 - Prob. 16QCh. 6 - Sales discounts with terms 2/10, n/30 mean: a. 10...Ch. 6 - Gross sales total 300,000, one-half of which were...Ch. 6 - A company has been successful in reducing the...Ch. 6 - When a company using the allowance method writes...Ch. 6 - You have determined that Company X estimates bad...Ch. 6 - Prob. 6MCQCh. 6 - Which of the following is not a step toward...Ch. 6 - When using the allowance method, as bad debt...Ch. 6 - Which of the following best describes the proper...Ch. 6 - Prob. 10MCQCh. 6 - Prob. 6.1MECh. 6 - Prob. 6.2MECh. 6 - Recording Bad Debts Prepare journal entries for...Ch. 6 - Prob. 6.4MECh. 6 - Determining the Effects of Credit Policy Changes...Ch. 6 - Prob. 6.6MECh. 6 - Prob. 6.7MECh. 6 - Prob. 6.1ECh. 6 - Reporting Net Sales with Credit Sales, Sales...Ch. 6 - Reporting Net Sales with Credit Sales, Sales...Ch. 6 - Determining the Effects of Credit Sales, Sales...Ch. 6 - Prob. 6.5ECh. 6 - Reporting Bad Debt Expense and Accounts Receivable...Ch. 6 - Recording Bad Debt Expense Estimates and...Ch. 6 - Recording Bad Debt Expense Estimates and...Ch. 6 - Prob. 6.9ECh. 6 - Prob. 6.10ECh. 6 - Computing Bad Debt Expense Using Aging Analysis...Ch. 6 - Recording and Reporting a Bad Debt Estimate Using...Ch. 6 - Recording and Reporting a Bad Debt Estimate Using...Ch. 6 - Prob. 6.14ECh. 6 - Prob. 6.15ECh. 6 - Inferring Bad Debt Write-Offs and Cash Collections...Ch. 6 - Inferring Bad Debt Write-Offs and Cash Collections...Ch. 6 - Prob. 6.18ECh. 6 - Prob. 6.19ECh. 6 - Prob. 6.20ECh. 6 - Recording, Reporting, and Evaluating a Bad Debt...Ch. 6 - Prob. 6.22ECh. 6 - Prob. 6.23ECh. 6 - Interpreting tho Effects of Salos Declines and...Ch. 6 - Prob. 6.25ECh. 6 - Prob. 6.26ECh. 6 - Prob. 6.27ECh. 6 - Prob. 6.1PCh. 6 - Recording Bad Debts and Interpreting Disclosure of...Ch. 6 - Determining Bad Debt Expense Based on Aging...Ch. 6 - Preparing an Income Statement and Computing the...Ch. 6 - Prob. 6.5PCh. 6 - Prob. 6.6PCh. 6 - Prob. 6.7PCh. 6 - Reporting Net Sales and Expenses with Discounts,...Ch. 6 - Prob. 6.2APCh. 6 - Determining Bad Debt Expense Based on Aging...Ch. 6 - Prob. 6.4APCh. 6 - Prob. 6.5APCh. 6 - Prob. 6.1CONCh. 6 - Finding Financial Information Refer to the...Ch. 6 - Finding Financial Information Refer to the...Ch. 6 - Prob. 6.3CPCh. 6 - Prob. 6.4CPCh. 6 - Prob. 6.5CP
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