Homework Answers
Solution :
5/10, n/30 means that Coleman company will get a 5% discount if they pay the invoice within 10 days of the invoice date; otherwise the full amount is due with in 30 days. The potential savings resulting from taking advantage of discount will be 5% of original invoice price. Coleman will need to pay the invoice within 10 days of the original invoice date in order to take advantage of these savings.
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Coleman Company purchases inventory from Happy Pool Supplies on June 1. The sales terms on the...
The credit terms offered to customers for early payment need to be sufficiently lucrative for them to want to pay early, but not so lucrative that the seller is effectively paying an inordinately high...
The credit terms offered to customers for early payment need to be sufficiently lucrative for them to want to pay early, but not so lucrative that the seller is effectively paying an inordinately high interest rate for the use of the money that it is receiving early. The term structure used for credit terms is to first state the number of days you are giving customers from the invoice date in which to take advantage of the early payment credit...
2. Suppliers X and Z are competing to sell your company supplies. The full price of...
2. Suppliers X and Z are competing to sell your company supplies. The full price of supplies from supplier X is $2,200 and they offer these payment plans: 5.7% discount if you pay within 10 days, otherwise pay full price within 290 days. The full price with supplier Z is $2,270 and they offer these payment plans: 6.4% discount if you pay within 20 days, otherwise pay full price within 285 days. Your company financing rate is 8.2% compounded daily....
Under the perpetual inventory system the Merchandise inventory account is continuously updated as purchases, sales, and...
Under the perpetual inventory system the Merchandise inventory account is continuously updated as purchases, sales, and relurns occur and under periodic inventory system the Merchandise inventory account slays as its beginning balance unti the physical inventory is recorded at the and of the accounting period. True False Under the perpetual inventory systerm, in addition to making the entry to record a sala, a company wouid: A. Debit Marchandise Inventory and credit Cost of Goods Sold B. Debit Cost of Goods...
Bustech’s standard terms on sales invoices are 30 days, but analysis has shown that on average...
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Brief Exercise 5-42 Sales Discounts Not Taken Gordon's Grocers purchases bread from Buddy's Bread Company at...
Brief Exercise 5-42 Sales Discounts Not Taken Gordon's Grocers purchases bread from Buddy's Bread Company at $1.45 per loaf. Gordon's engaged in a customer service contract to purchase 20,000 loaves of Buddy's bread. Buddy offered credit at terms of 2/10, n/30 and expects Gordon to pay within the discount period. Required: Prepare the journal entry assuming the payment is made after 10 days (after the discount period). If an amount box does not require an entry, leave it blank. Record...
Pets Unlimited sells pet supplies to retailers. The company uses a perpetual inventory. Journalize the following...
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Please help me answer those three Questions. Santa Fe Company purchased merchandise for resale from Mesa...
Please help me answer those
three Questions.
Santa Fe Company purchased merchandise for resale from Mesa Company with an invoice price of $25,400 and credit terms of 3/10, 1/60. The merchandise had cost Mesa $17,323. Santa Fe paid within the discount period. Assume that both buyer and seller use a perpetual inventory system. 1. Prepare the entries that Santa Fe should record for the above transactions. View transaction list Х 1 Santa Fe Company purchased merchandise for resale from Mesa...
Purchases Transactions Xanadu Company purchased merchandise on account from a supplier for $8,600, terms 1/10, n/30....
Purchases Transactions Xanadu Company purchased merchandise on account from a supplier for $8,600, terms 1/10, n/30. Xanadu Company returned $1,600 of the merchandise and received full credit. a. If Xanadu Company pays the invoice within the discount period, what is the amount of cash required for the payment? If required, round the answer to the nearest dollar. b. What account is credited by Xanadu Company to record the return?
Calculator Purchases Transactions Barans Company purchased merchandise on account from Springhill Company for $10,200, terms 2/10,...
Calculator Purchases Transactions Barans Company purchased merchandise on account from Springhill Company for $10,200, terms 2/10, n/30. Barans returned merchandise with an invoice amount of $2,100 and received full credit. a. If Barans Company pays the invoice within the discount period, what is the amount of cash required for the payment? If required, round the answer to the nearest dollar. b. What account is debited by Barans Company to record the return? Accounts Payable-Springhill Company Accounts Receivable Cash A Merchandise...
Hel Peachtree Company uses sales journal, purchases journal, cash receipts journal, cash payments journal, and general...
Hel Peachtree Company uses sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Journalize the following transactions that should be recorded in the purchases journal. May 1 Purchased $11,100 of merchandise on credit from Krause, Inc., terms n/30. 8 Sold merchandise costing $940 to G. Seles for $1,700 on credit subject to a $32 sales discount if paid by the end of the month. 14 Purchased $260 of store supplies from Chang Company on credit, terms...
2. Suppliers X and Z are competing to sell your company supplies. The full price of supplies from supplier X is $2,200 and they offer these payment plans: 5.7% discount if you pay within 10 days, otherwise pay full price within 290 days. The full price with supplier Z is $2,270 and they offer these payment plans: 6.4% discount if you pay within 20 days, otherwise pay full price within 285 days. Your company financing rate is 8.2% compounded daily....
Under the perpetual inventory system the Merchandise inventory account is continuously updated as purchases, sales, and relurns occur and under periodic inventory system the Merchandise inventory account slays as its beginning balance unti the physical inventory is recorded at the and of the accounting period. True False Under the perpetual inventory systerm, in addition to making the entry to record a sala, a company wouid: A. Debit Marchandise Inventory and credit Cost of Goods Sold B. Debit Cost of Goods...
Brief Exercise 5-42 Sales Discounts Not Taken Gordon's Grocers purchases bread from Buddy's Bread Company at $1.45 per loaf. Gordon's engaged in a customer service contract to purchase 20,000 loaves of Buddy's bread. Buddy offered credit at terms of 2/10, n/30 and expects Gordon to pay within the discount period. Required: Prepare the journal entry assuming the payment is made after 10 days (after the discount period). If an amount box does not require an entry, leave it blank. Record...
Please help me answer those
three Questions.
Santa Fe Company purchased merchandise for resale from Mesa Company with an invoice price of $25,400 and credit terms of 3/10, 1/60. The merchandise had cost Mesa $17,323. Santa Fe paid within the discount period. Assume that both buyer and seller use a perpetual inventory system. 1. Prepare the entries that Santa Fe should record for the above transactions. View transaction list Х 1 Santa Fe Company purchased merchandise for resale from Mesa...
Purchases Transactions Xanadu Company purchased merchandise on account from a supplier for $8,600, terms 1/10, n/30. Xanadu Company returned $1,600 of the merchandise and received full credit. a. If Xanadu Company pays the invoice within the discount period, what is the amount of cash required for the payment? If required, round the answer to the nearest dollar. b. What account is credited by Xanadu Company to record the return?
Calculator Purchases Transactions Barans Company purchased merchandise on account from Springhill Company for $10,200, terms 2/10, n/30. Barans returned merchandise with an invoice amount of $2,100 and received full credit. a. If Barans Company pays the invoice within the discount period, what is the amount of cash required for the payment? If required, round the answer to the nearest dollar. b. What account is debited by Barans Company to record the return? Accounts Payable-Springhill Company Accounts Receivable Cash A Merchandise...
Hel Peachtree Company uses sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Journalize the following transactions that should be recorded in the purchases journal. May 1 Purchased $11,100 of merchandise on credit from Krause, Inc., terms n/30. 8 Sold merchandise costing $940 to G. Seles for $1,700 on credit subject to a $32 sales discount if paid by the end of the month. 14 Purchased $260 of store supplies from Chang Company on credit, terms...
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