Under Net method:
Date | Account Titles and Explanation | Debit | Credit |
Jan 2,2020 | Notes receivable [669,100 - 9,100 Disc.] | $660,000 | |
Sales revenue | $660,000 | ||
[To record sales] | |||
Cost of goods sold | $540,000 | ||
Inventory | $540,000 | ||
[To record cost of goods sold] | |||
Jan 28,2020 | Notes receivable | $660,000 | |
Discount lost | $9,100 | ||
Cash | $669,100 | ||
[To record payment received] |
Under gross method:
Date | Account Titles and Explanation | Debit | Credit |
Jan 2,2020 | Notes receivable | $669,100 | |
Sales revenue | $669,100 | ||
[To record sales] | |||
Cost of goods sold | $540,000 | ||
Inventory | $540,000 | ||
[To record cost of goods sold] | |||
Jan 28,2020 | Notes receivable | $669,100 | |
Cash | $669,100 | ||
[To record payment received] |
Flint Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2020....
Waterway Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2020. The goods have a sales price of $550,100 (cost of $510,000). The terms are net 30. If Danone pays within 5 days, however, it receives a cash discount of $10,100. Past history indicates that the cash discount will be taken. On January 28, 2020, Danone makes payment to Waterway for the full sales price. Prepare the journal entry(ies) to record the sale and related...
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...
Teal Company sells goods to Danone Inc, by accepting a note receivable on January 2, 2017. The goods have a sales price of 3589,900 (cost of 510,000). The terms are net 30. If Danone pays within 5 days, however, it receives a cash discount of $9,900. Past history indicates that the cash discount will be taken. On January 28, 2017, Danone makes payment to Teal for the full sales price. Prepare the Journal entry(less) to record the sale and related cost...
Flint Company sells goods that cost $320,000 to Ricard Company for $403,500 on January 2, 2020. The sales price includes an installation fee, which has a standalone selling price of $38,500. The standalone selling price of the goods is $365,000. The installation is considered a separate performance obligation and is expected to take 6 months to complete. (a) Prepare the journal entries (if any) to record the sale on January 2, 2020. (Credit account titles are automatically indented when amount...
Practice Exercise 18-2 Grouper Inc. sells goods to Brooks Corp. on account on January 2, 2017. The goods have a sales price of $525,000 (cost of $424,000). The terms are net 30. If Brooks pays within 6 days, however, it receives a cash discount of $7,200. A history of past similar transactions indicates that Brooks will take the cash discount. On January 7, 2017, Brooks makes payment to Grouper for the full sales price. Your answer is partially correct. Try...
On January 1, 2020, Flounder Co. enters into a contract to sell a customer a wiring base and shelving unit that sits on the base in exchange for $2,900. The contract requires delivery of the base first but states that payment for the base will not be made until the shelving unit is delivered. Flounder identifies two performance obligations and allocates $1,160 of the transaction price to the wiring base and the remainder to the shelving unit. The cost of...
On January 1, 2020, Novak Co. enters into a contract to sell a customer a wiring base and shelving unit that sits on the base in exchange for $2,800. The contract requires delivery of the base first but states that payment for the base will not be made until the shelving unit is delivered. Novak identifies two performance obligations and allocates $1,120 of the transaction price to the wiring base and the remainder to the shelving unit. The cost of...
Help please! Brief Exercise 18-9 On January 2, 2017, Crane Inc. sells goods to Geo Company in exchange for a zero-interest-bearing note with face value of $10,900, with payment due in 12 months. The fair value of the goods at the date of sale is s9,600 (cost $5,760) Prepare the journal entry to record this transaction on January 2, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select...
Bonita Company sells goods that cost $320,000 to Ricard Company for $404,500 on January 2, 2020. The sales price includes an installation fee, which has a standalone selling price of $44,000. The standalone selling price of the goods is $360,500. The installation is considered a separate performance obligation and is expected to take 6 months to complete. (a) Prepare the journal entries (if any) to record the sale on January 2, 2020. (Credit account titles are automatically indented when amount...
On January 1, 2020, Sandhill Company issued $310,500, 9%, 5-year bonds at face value. Interest is payable annually on January 1. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2020 Prepare the journal entry to record the accrual of interest on December 31, 2020. (Credit account titles are automatically indented when amount is entered....