Homework Answers
Answer
- Discount term is that if paid within 10 days, 2.5% discount will be given to customer.
- Customer pays on Jul 8 (within 10 days of Jul 1). Hence discount will be given to the customer.
- Amount of discount = $ 800 x 2.5% = $ 20
- This discount is a SALES DISCOUNT.
- Sales Discount is treated as an EXPENSE. Expenses are to be DEBITED.
- Correct Answer = Option ‘A’
Dr Discount Expense for $ 20
Add Answer to:
Griffin Ltd made a sale of $800 to a customer on terms of 2.5/10, n/30 on...
Maxie's Game World sold games to a customer on credit for $2,700, terms 2/10,n/30 and the cost of the games was...
Maxie's Game World sold games to a customer on credit for $2,700, terms 2/10,n/30 and the cost of the games was $1,800. When recording the sales transaction in its sales journal, Maxie's would enter: Multiple Choice $1,800 in the Accounts Receivable Dr./Sales Cr. column and $2.700 in the Cost of Goods Sold Dr./Inventory Cr.column $2.700 in the Accounts Receivable Dr./Sales Cr. column and $1,800 in the Accounts Payable Dr./Purchases Cr. column () $2,700 in the Accounts Receivable Dr./Sales Cr. column...
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
Fraxon Inc. made a $40,000 sale on account with terms of 1/15, n/30. If the company...
Fraxon Inc. made a $40,000 sale on account with terms of 1/15, n/30. If the company uses the gross method, which of the following will be included in the journal entry to record customer payment within the discount period? credit Accounts Receivable $40,000 credit Sales Discount $400 credit Sales Revenue $40,000 credit Cash $39,600
5. AG Inc. made a $25,000 sale on account with the following terms: 2/10, n/30. If...
5. AG Inc. made a $25,000 sale on account with the following terms: 2/10, n/30. If the company uses the net method to record sales made on credit, what is/are the debit(s) in the journal entry to record the sale? a. Debit Accounts Receivable for $24,500. b. Debit Accounts Receivable for $24,500 and Sales Discounts for $500. C. Debit Accounts Receivable for $25,000. d. Debit Accounts Receivable for $25,000 and Sales Discounts for $500. 6. On July 22, Peter sold...
Franko Inc. just made a sale to a customer on account (aka. 'on credit) for $805,...
Franko Inc. just made a sale to a customer on account (aka. 'on credit) for $805, terms n/60. What would be the journal entry Franko shold make to record this sale? Multiple Choice Debit Accounts Receivable $805 and credit Sales Revenue $805 Debit Cash of $805 and credit Sales Revenue $805 Debit Sales Revenue $805 and credt Accounts Recelvable $805 Debit Accounts Recevable $805 and credt Cash $805 Prev14 of 34 Next> command option ion command
When a credit sale is made with terms of 3/15, n/30 on June 10 and the...
When a credit sale is made with terms of 3/15, n/30 on June 10 and the customer's check is received on June 19, which of the following is true about the June 19 journal entry? The debit to cash will be less than the credit to accounts receivable on June 19. The debit to cash will equal the credit to accounts receivable because the discount was recorded on June 10. There will be a debit to sales discounts on June...
The following error occurred during the month of April 20x9 for Luman Ltd. A $1053 payment...
The following error occurred during the month of April 20x9 for Luman Ltd. A $1053 payment on account received by a customer was incorrectly recorded in the books of Luman Ltd. as $2698. 100 Which of the following would be the journal entry to correct this error made, so that Luman's cash account is up to date at April 30, tion 20x9? Select one: O a. Dr. Accounts Receivable $1645 and Cr. Cash $1645 O b. Dr. Cash $1053 and...
13) May Retailers sold merchandise with a list price of $100,000, subject to a trade discount of 20 percent and cre...
13) May Retailers sold merchandise with a list price of $100,000, subject to a trade discount of 20 percent and credit terms of 2/10, n/30. At what amount should May record the sale of this merchandise if the gross method is used? a. Debit Accounts Receivable for $100,000. b. Debit Accounts Receivable for $98,000. c. Debit Accounts Receivable for $80,000. d. Debit Accounts Receivable for $78,400. 14) On January 1, 2015, AG Inc. made a $15,000 sale on account with...
Selected accounts from the chart of accounts of Nader Company are shown below. 101 Cash 401...
Selected accounts from the chart of accounts of Nader Company are shown below. 101 Cash 401 Sales Revenue 112 Accounts Receivable 412 Sales Returns and Allowances 120 Inventory 414 Sales Discounts 126 Supplies 505 Cost of Goods Sold 157 Equipment 726 Salaries and Wages Expense 201 Accounts Payable The cost of all merchandise sold was 60% of the sales price. During January, Nader completed the following transactions. • Jan. 3 Purchased merchandise on account from Gallagher Co. $9,000. • 4...
On July 1,Foster Corp. made a sale of $445,000 to Willette, Inc. on account. Terms of...
On July 1,Foster Corp. made a sale of $445,000 to Willette, Inc. on account. Terms of the sale were 3/10, n/30. Willette makes payment on July 29. Foster uses most-likely-amount method and assumes that the customer will take the discount when accounting for sales discounts. Ignore cost of goods sold and the reduction of inventory. What net sale does Foster report?
Maxie's Game World sold games to a customer on credit for $2,700, terms 2/10,n/30 and the cost of the games was $1,800. When recording the sales transaction in its sales journal, Maxie's would enter: Multiple Choice $1,800 in the Accounts Receivable Dr./Sales Cr. column and $2.700 in the Cost of Goods Sold Dr./Inventory Cr.column $2.700 in the Accounts Receivable Dr./Sales Cr. column and $1,800 in the Accounts Payable Dr./Purchases Cr. column () $2,700 in the Accounts Receivable Dr./Sales Cr. column...
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
5. AG Inc. made a $25,000 sale on account with the following terms: 2/10, n/30. If the company uses the net method to record sales made on credit, what is/are the debit(s) in the journal entry to record the sale? a. Debit Accounts Receivable for $24,500. b. Debit Accounts Receivable for $24,500 and Sales Discounts for $500. C. Debit Accounts Receivable for $25,000. d. Debit Accounts Receivable for $25,000 and Sales Discounts for $500. 6. On July 22, Peter sold...
Franko Inc. just made a sale to a customer on account (aka. 'on credit) for $805, terms n/60. What would be the journal entry Franko shold make to record this sale? Multiple Choice Debit Accounts Receivable $805 and credit Sales Revenue $805 Debit Cash of $805 and credit Sales Revenue $805 Debit Sales Revenue $805 and credt Accounts Recelvable $805 Debit Accounts Recevable $805 and credt Cash $805 Prev14 of 34 Next> command option ion command
When a credit sale is made with terms of 3/15, n/30 on June 10 and the customer's check is received on June 19, which of the following is true about the June 19 journal entry? The debit to cash will be less than the credit to accounts receivable on June 19. The debit to cash will equal the credit to accounts receivable because the discount was recorded on June 10. There will be a debit to sales discounts on June...
The following error occurred during the month of April 20x9 for Luman Ltd. A $1053 payment on account received by a customer was incorrectly recorded in the books of Luman Ltd. as $2698. 100 Which of the following would be the journal entry to correct this error made, so that Luman's cash account is up to date at April 30, tion 20x9? Select one: O a. Dr. Accounts Receivable $1645 and Cr. Cash $1645 O b. Dr. Cash $1053 and...
13) May Retailers sold merchandise with a list price of $100,000, subject to a trade discount of 20 percent and credit terms of 2/10, n/30. At what amount should May record the sale of this merchandise if the gross method is used? a. Debit Accounts Receivable for $100,000. b. Debit Accounts Receivable for $98,000. c. Debit Accounts Receivable for $80,000. d. Debit Accounts Receivable for $78,400. 14) On January 1, 2015, AG Inc. made a $15,000 sale on account with...
Most questions answered within 3 hours.
-
While rotating the tires on your car you notice a rock [mass =
0.1 Kg] stuck...
asked 19 minutes ago -
Using MARS simulator, write MIPS programs according to
the following scenarios: Receive a positive integer number...
asked 2 hours ago -
An object in front of a concave mirror has a real image that is
11.5 cm...
asked 2 hours ago -
Consider the reaction, C3 H8 + O2 --> CO2 + H2O. How many
moles of O2...
asked 4 hours ago -
You and your opponent both roll a fair die. If you both roll the
same number,...
asked 4 hours ago -
In a study of the accuracy of fast food drive-through orders,
Restaurant A had 257 accurate...
asked 4 hours ago -
Identify and describe in detail the four categories of
institutions that could be included in a...
asked 4 hours ago -
In python
class Customer:
def __init__(self, customer_id, last_name, first_name, phone_number, address):
self._customer_id = int(customer_id)
self._last_name =...
asked 4 hours ago -
What is an example of a limitation in implementing a new
ERP system and how it...
asked 4 hours ago -
In a section of 9.7cm of an artery with a radius of 2.6mm there
is a...
asked 4 hours ago -
the two carboxylic acid groups of aspartic acid have different
acidities with pKa values of 2.1...
asked 4 hours ago -
Would CuCO3 aqueous salt combined with calcium chloride
form a solid precipitate? If so, what would...
asked 4 hours ago