Question

need help with problems E6-1 and E6-3 help with both please

Reconciling em a. Outstanding checks b. Bank service charge c. Deposit in transit M6-7 de Chapter Supplement) Recording Sales Discounts A sale is made for $6.00; terms me yje, 0. Al what amount should the sale the gross method of recording les discounts Give the required entry. Also give the assuming that it is during the discount period. Rinwind Assume contrare Determi EXERCISES connect Returns Braze S cosas decrease E6-1 LO8-1 Reporting Net Sales with Credit Sales and Sales Discounts During the month of January and February. Hancock Corporation sold goods to the customers. The sequence of events was as follows: July Jan 6 6 14 2 28 Sold goods for $1.500 to S Green and Dilled that amount subject to terms 2/10, /30 Sold goods to M Muro for $850 and bited that amount subject to terms 2/10, 1/30. Collected cash due from 5. Green Collected cash from M. Munoz Sold goods for $500 1 R Reynolds and bied that amount subject to terms 2/10:45 Feb Regard Assuming that Sales Discounts is treated as a contra-revenue, compute net sales for the two months ended Rebruary 28 and Credit Card Sales sa credit card Evaluat ment Ch

Answer 1

Problem E6-1 :
Net sales= $ 2,820
Explanation is given below :
Particulars	Amount($)
Sales Revenue ($1500+$ 850+$500)	$ 2,850
Less: Sales Discount ($ 1500*2% )	($30)
Net sales as on February 28	$ 2,820

Note :

1)S.Green is to be paid in 8 days (From January 6 to January 14 ). Hence S.Green got

discount on $ 1500 (With in discount) .so, Sales discount = $ 1500 *2% = $ 30

2) M.Muthoz is to be paid more than 10 days (From January 6 to February 2 = 27 days )

so, M.Muthoz doesn’t get discount on $ 850 .

Problem E6-3 :
Net Sales= $ 13,757
Explanation is given below :
Particulars	Amount($)
Sales Revenue ($5,500+$ 400 +$ 9,000)	$ 14,900
Less: Sales Returns and Allowances (1/10*9000 from Customer D)	($900)
Less: Sales Discount { ($ 9,000-$900)*3% ) From customer D}	($243)
Net sales as on December 31	$ 13,757

Note :

1) Customer D is to be paid in 7 days (From November 29 to December 6 ). Hence Customer D got

discount on $ 8,100 (With in discount) .so, Sales discount = $ 8,100*3% = $ 243

2) Customer B is to be paid more than 10 days (From November 20 to December   i.e 30 days )

so, Customer B doesn’t get discount on $ 5,500 . ( Outside the discount period )

3)Customer D returned 1 of the 10 items purchased at total cost is $ 9,000 which is equal to

$ 900 per item. So, sales returns and allowances = $ 9000/ 10 items = $ 900 per item .