A company sells goods to a customer who will pay the full amount in 30 days.
QUESTION 10/16
A company sells goods to a customer who will pay the full amount in 30 days.
How should the company record the sale?
SELECT ONLY ONE
debit Accounts Payable and credit Sales
debit Sales and credit Accounts Receivable
debit Accounts Receivable and credit Sales
debit Sales and credit Cash
debit Cash and credit Sales
Homework Answers
The company can record the sale as DEBIT ACCOUNTS RECEIVABLE AND CREDIT SALES.
The company selling the goods and services is transferring the ownership of it's goods to the buyer and has an asset, which can be termed as debit accounts receivable.
Credit sales is revenue earned by company , when it sells goods and allows its buyers to pay later with in a specified time.
So for the above question: A company sells goods to a customer who will pay full amount in 30 days can be considered as DEBIT ACCOUNTS RECEIVABLE AND CREDIT SALES..
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A company sells goods to a customer who will pay the full amount in 30 days.
8. A company sells $10,000 of goods to a customer who pays with a credit card....
8. A company sells $10,000 of goods to a customer who pays with a credit card. The Credit Card company charges a 2.5% service charge. No cash is received. Record the sale of goods.
Flint Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2020....
Flint Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2020. The goods have a sales price of $669,100 (cost of $540,000). The terms are net 30. If Danone pays within 5 days, however, it receives a cash discount of $9,100. Past history indicates that the cash discount will be taken. On January 28, 2020, Danone makes payment to Flint for the full sales price. Prepare the journal entry(les) to record the sale and related...
Mullis Company sold merchandise on account to a customer for $625, terms n/30. The journal entry...
Mullis Company sold merchandise on account to a customer for $625, terms n/30. The journal entry to record this sale transaction would be: Multiple Choice Debit Cash of $625 and credit Sales $625. O Debit Cash of $625 and credit Accounts Receivable $625. Debit Accounts Receivable $625 and credit Sales $625. Debit Accounts Receivable $625 and credit Cash $625. C) Debit Soles $625 and credit Accounts Receivable $625.
Knowledge Check 01 A company sells goods to a customer on account for $800, terms 3/10,n/30....
Knowledge Check 01 A company sells goods to a customer on account for $800, terms 3/10,n/30. The customer pays within the discount period. On the date of payment, the company will debit: Multiple Choice O Accounts Receivable for $776 O Cash for $800 O Sales Discounts for $24 O Sales Revenue for $800
The following selected transactions were completed by Green Lawn Supplies Co., which sells irrigation supplies primarily...
The following selected transactions were completed by Green Lawn Supplies Co., which sells irrigation supplies primarily to other businesses and occasionally to retail customers.Green Lawn uses the net method under a perpetual inventory system. July 1. Sold merchandise on account to Landscapes Co., $51,020, terms FOB shipping point, n/eom. The cost of the goods sold was $35,140. 2. Sold merchandise for $11,050 plus 6% sales tax to retail cash customers. The cost of the goods sold was $6,830. 5. Sold...
Blue Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2020....
Blue Company sells goods to Danone Inc. by accepting a note
receivable on January 2, 2020. The goods have a sales price of
$551,000 (cost of $480,000). The terms are net 30. If Danone pays
within 5 days, however, it receives a cash discount of $11,000.
Past history indicates that the cash discount will be taken. On
January 28, 2020, Danone makes payment to Blue for the full sales
price.
Prepare the journal entry(ies) to record the sale and related...
Given the following information, compute the amount of cash remitted by the customer on February 21....
Given the following information, compute the amount of cash remitted by the customer on February 21. Feb 14 - Sale on credit, terms of 1/15, n/30 - $12,000 Feb 19 - Allowance granted due to some items being damaged - $600 Feb 21 - Payment in full received from customer - ????? a.$11,286 b.$12,000 c.$11,996 d.$11,400 Goods held on consignment for another company should be included in the inventory of the company holding the merchandise. True False To record the...
1. A company delivered $10,000 of goods to a customer that agreed to pay cash within...
1. A company delivered $10,000 of goods to a customer that agreed to pay cash within 30 days. The goods had cost $8,000 to manufacture. Which of the following items would be increased by this sales transaction? (check all that apply) Total Assets Revenue Inventory Total Liabilities Accounts Receivable 2. A company took delivery of $50,000 of new inventory and agreed to pay cash to the supplier within 30 days. Which of the following items would be increased by this...
Mackenzie Company sold $580 of merchandise to a customer who used a Regional Bank credit card....
Mackenzie Company sold $580 of merchandise to a customer who used a Regional Bank credit card. Regional Bank deducts a 4.0% service charge for sales on its credit cards. Mackenzie electronically remits the credit card sales receipts to the credit card company and receives payment immediately The journal entry to record this sale transaction would be: Multiple Choice O Debit Cash of $580 and credit Accounts Receivable-Regional $580. ) Debit Cash of $580 and credit Sales $580. ooooo Debit Accounts...
Question 08 (Part Level Submission) Inventory was purchased on credit in April and paid for in...
Question 08 (Part Level Submission)
Inventory was purchased on credit in April and paid for in May
by Lebel Ltée. Lebel sold and delivered the merchandise, along with
an invoice, to a customer in June. The customer paid Lebel for the
merchandise in July.
(a) In which month should Lebel record the sale as revenue and
in which month should Lebel record the cost of goods sold as
expense?
The company should record the sale as revenue in the month...
Flint Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2020. The goods have a sales price of $669,100 (cost of $540,000). The terms are net 30. If Danone pays within 5 days, however, it receives a cash discount of $9,100. Past history indicates that the cash discount will be taken. On January 28, 2020, Danone makes payment to Flint for the full sales price. Prepare the journal entry(les) to record the sale and related...
Mullis Company sold merchandise on account to a customer for $625, terms n/30. The journal entry to record this sale transaction would be: Multiple Choice Debit Cash of $625 and credit Sales $625. O Debit Cash of $625 and credit Accounts Receivable $625. Debit Accounts Receivable $625 and credit Sales $625. Debit Accounts Receivable $625 and credit Cash $625. C) Debit Soles $625 and credit Accounts Receivable $625.
Knowledge Check 01 A company sells goods to a customer on account for $800, terms 3/10,n/30. The customer pays within the discount period. On the date of payment, the company will debit: Multiple Choice O Accounts Receivable for $776 O Cash for $800 O Sales Discounts for $24 O Sales Revenue for $800
Blue Company sells goods to Danone Inc. by accepting a note
receivable on January 2, 2020. The goods have a sales price of
$551,000 (cost of $480,000). The terms are net 30. If Danone pays
within 5 days, however, it receives a cash discount of $11,000.
Past history indicates that the cash discount will be taken. On
January 28, 2020, Danone makes payment to Blue for the full sales
price.
Prepare the journal entry(ies) to record the sale and related...
1. A company delivered $10,000 of goods to a customer that agreed to pay cash within 30 days. The goods had cost $8,000 to manufacture. Which of the following items would be increased by this sales transaction? (check all that apply) Total Assets Revenue Inventory Total Liabilities Accounts Receivable 2. A company took delivery of $50,000 of new inventory and agreed to pay cash to the supplier within 30 days. Which of the following items would be increased by this...
Mackenzie Company sold $580 of merchandise to a customer who used a Regional Bank credit card. Regional Bank deducts a 4.0% service charge for sales on its credit cards. Mackenzie electronically remits the credit card sales receipts to the credit card company and receives payment immediately The journal entry to record this sale transaction would be: Multiple Choice O Debit Cash of $580 and credit Accounts Receivable-Regional $580. ) Debit Cash of $580 and credit Sales $580. ooooo Debit Accounts...
Question 08 (Part Level Submission)
Inventory was purchased on credit in April and paid for in May
by Lebel Ltée. Lebel sold and delivered the merchandise, along with
an invoice, to a customer in June. The customer paid Lebel for the
merchandise in July.
(a) In which month should Lebel record the sale as revenue and
in which month should Lebel record the cost of goods sold as
expense?
The company should record the sale as revenue in the month...
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