Journal entry and net sales in case of most likely method for recording sales discount. Given information: Sales price is $80. Quantity sold is 35 units. Sales discount is 1%. Customer for 25 units avails and customer for 10 units doesn’t avail the discount. Company assumes that there is 65% chances that customer would avail the discount for expected value method.

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Answer 1

Question

Chapter 9, Problem 9.2P

To determine

Journal entry and net sales in case of most likely method for recording sales discount.

Given information:

Sales price is $80.

Quantity sold is 35 units.

Sales discount is 1%.

Customer for 25 units avails and customer for 10 units doesn’t avail the discount.

Company assumes that there is 65% chances that customer would avail the discount for expected value method.

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Answer 2

Question

Chapter 9, Problem 9.2P

To determine

Journal entry and net sales in case of most likely method for recording sales discount.

Given information:

Sales price is $80.

Quantity sold is 35 units.

Sales discount is 1%.

Customer for 25 units avails and customer for 10 units doesn’t avail the discount.

Company assumes that there is 65% chances that customer would avail the discount for expected value method.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 9, Problem 9.2P

To determine

Journal entry and net sales in case of most likely method for recording sales discount.

Given information:

Sales price is $80.

Quantity sold is 35 units.

Sales discount is 1%.

Customer for 25 units avails and customer for 10 units doesn’t avail the discount.

Company assumes that there is 65% chances that customer would avail the discount for expected value method.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 9, Problem 9.2P

To determine

Journal entry and net sales in case of most likely method for recording sales discount.

Given information:

Sales price is $80.

Quantity sold is 35 units.

Sales discount is 1%.

Customer for 25 units avails and customer for 10 units doesn’t avail the discount.

Company assumes that there is 65% chances that customer would avail the discount for expected value method.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 9, Problem 9.2P

To determine

Journal entry and net sales in case of most likely method for recording sales discount.

Given information:

Sales price is $80.

Quantity sold is 35 units.

Sales discount is 1%.

Customer for 25 units avails and customer for 10 units doesn’t avail the discount.

Company assumes that there is 65% chances that customer would avail the discount for expected value method.

Answer 6

Chapter 9, Problem 9.2P

To determine

Journal entry and net sales in case of most likely method for recording sales discount.

Given information:

Sales price is $80.

Quantity sold is 35 units.

Sales discount is 1%.

Customer for 25 units avails and customer for 10 units doesn’t avail the discount.

Company assumes that there is 65% chances that customer would avail the discount for expected value method.

Answer 7

Chapter 9, Problem 9.2P

To determine

Journal entry and net sales in case of most likely method for recording sales discount.

Given information:

Sales price is $80.

Quantity sold is 35 units.

Sales discount is 1%.

Customer for 25 units avails and customer for 10 units doesn’t avail the discount.

Company assumes that there is 65% chances that customer would avail the discount for expected value method.

Answer 8

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Answer 9

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Answer 10

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Answer 11

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Solution Summary: The author explains the most likely method of accounting sales discount, which is when a company records sales on the basis of expectation of availing or non-availing of discount by the customer.

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Chapter 9 Solutions