Purchased 400 units of Zoom at a cost of $151.17 each from the Lyons Company, terms...
Purchased 400 units of Zoom at a cost of $151.17 each from the Lyons Company, terms 2/10, n/30, with FOB Shipping point term plus sales taxes of 8% that were not included in the purchase price. What do I do with the sales tax part of this - do I have a "sales tax expense" account?
Homework Answers
No, you do not have to have a Sales tax expense account because sales taxes are included in the purchase price. So, buyer have to have only Purchase expense towards debit side of the transaction.
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Purchased 400 units of Zoom at a cost of $151.17 each from the
Lyons Company, terms...
More Info Wov. 4 Purchased merchandise inventory on account from Valsad Company, $6,000. Terms 3/10,n/EOM, FOB...
4 Purchased merchandise inventory on account from Valsad Company, $ 6,000. Terms 3 / 10, n/EOM, FOB shipping point.6 Paid freight bill of $ 170 on November 4 purchase.8 Returned half of the inventory purchased on November 4 from Valsad Company.10 Sold merchandise inventory for cash, $ 1,900. Cost of goods; $ 760. FOB destination.11 Sold merchandise inventory to Garfunkel Corporation, $ 10,600, on account. Terms 3 / 10, n / EOM. Cost of goods, $ 5,300. FOB shipping point.12...
Powell Company purchased goods with the following terms and details: Sales price, $8,000 Terms, 4/10, n/30...
Powell Company purchased goods with the following terms and details: Sales price, $8,000 Terms, 4/10, n/30 Date of sale, December 9 Date of payment, December 19 Returns and allowances (before payment), $400 Shipping, FOB Shipping Point, $140, prepaid by seller Required: Compute the amount that Powell Company has to pay to the seller for the goods.
QUESTION 10 On September 28, Reeve Incorporated purchased equipment with a purchase price of $39,787 plus...
QUESTION 10 On September 28, Reeve Incorporated purchased equipment with a purchase price of $39,787 plus 5% sales tax. Shipping terms were FOB Shipping Point and shipping charges were $265. Installation was completed, and the new equipment was placed in service on October 1. Installation costs totaled $935. The shipping and installation costs were paid for in cash on September 28. The equipment purchase price, including sales tax, was paid for by issuing a 120 day 6% Note Payable on October 1. Based on past...
Apr 2 Purchased merchandise from Lyon Company under the following terms: $4,600 price, invoice dated April...
Apr. 2 Purchased merchandise from Lyon Company under the following terms: $4,600 price, Invoice dated April 2, credit terms of 2/15, n/60, and FOB shipping point. 3 Paid $300 for shipping charges on the April 2 purchase. 4 Retumed to Lyon Company unacceptable merchandise that had an invoice price of $600. 17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise. 18 Purchased merchandise from Frist Corp. under the following terms: $8,500 price, Invoice...
Morris Company purchased goods with the following terms and details: Sales price, $7,000 Terms, 5/10, n/30...
Morris Company purchased goods with the following terms and details: Sales price, $7,000 Terms, 5/10, n/30 Date of sale, August 9 Date of payment, August 20 Returns and allowances (before payment), $1,000 Shipping, FOB Shipping Point, $290, prepaid by seller Required: Compute the amount that Morris Company has to pay to the seller for the goods.
QUESTION 8 On June 28, Carpenter Corporation purchased equipment with a purchase price of $36,626 plus...
QUESTION 8 On June 28, Carpenter Corporation purchased equipment with a purchase price of $36,626 plus 6% sales tax. Shipping terms were FOB Shipping Point and shipping charges were $327. Installation was completed, and the new equipment was placed in service on July 1. Installation costs totaled $949. The shipping and installation costs were paid for in cash. The equipment purchase price, including sales tax, was paid for by issuing a 120 day 5% Note Payable. Based on industry standards,...
July 1 Purchased merchandise from Boden Company for $6,000 under credit terms of 1/15, n/30, FOB...
July 1 Purchased merchandise from Boden Company for $6,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. 2 Sold merchandise to Creek Co. for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $500. 3 Paid $125 cash for freight charges on the purchase of July 1. 8 Sold merchandise that had cost $1,300 for $1,700 cash. 9 Purchased merchandise from Leight Co. for $2,200 under...
Aug. 1 Purchased merchandise from Aron Company for $7,500 under credit terms of 1/10, n/30, FOB...
Aug. 1 Purchased merchandise from Aron Company for $7,500 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. Aug. 5 Sold merchandise to Baird Corp. for $5,200 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost $4,000. Aug. 8 Purchased merchandise from Waters Corporation for $5,400 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. Aug. 9 Paid $125 cash for shipping charges related to the...
July 1 Purchased merchandise from Boden Company for $6,500 under credit terms of 2/15, n/30, FOB...
July 1 Purchased merchandise from Boden Company for $6,500 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1. 2 Sold merchandise to Creek Co. for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $542. 3 Paid $110 cash for freight charges on the purchase of July 1. 8 Sold merchandise that had cost $1,800 for $2,200 cash. 9 Purchased merchandise from Leight Co. for $3,000 under...
On June 10, Crane Company purchased $10,000 of merchandise on account from Blue Company, FOB shipping...
On June 10, Crane Company purchased $10,000 of merchandise on
account from Blue Company, FOB shipping point, terms 2/10, n/30.
Crane pays the freight costs of $610 on June 11. Damaged goods
totaling $350 are returned to Blue for credit on June 12. The fair
value of these goods is $75. On June 19, Crane pays Blue Company in
full, less the purchase discount. Both companies use a perpetual
inventory system.
Exercise 5-04 a-b (Part Level Submission) (Video) On June...
4 Purchased merchandise inventory on account from Valsad Company, $ 6,000. Terms 3 / 10, n/EOM, FOB shipping point.6 Paid freight bill of $ 170 on November 4 purchase.8 Returned half of the inventory purchased on November 4 from Valsad Company.10 Sold merchandise inventory for cash, $ 1,900. Cost of goods; $ 760. FOB destination.11 Sold merchandise inventory to Garfunkel Corporation, $ 10,600, on account. Terms 3 / 10, n / EOM. Cost of goods, $ 5,300. FOB shipping point.12...
July 1 Purchased merchandise from Boden Company for $6,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. 2 Sold merchandise to Creek Co. for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $500. 3 Paid $125 cash for freight charges on the purchase of July 1. 8 Sold merchandise that had cost $1,300 for $1,700 cash. 9 Purchased merchandise from Leight Co. for $2,200 under...
Aug. 1 Purchased merchandise from Aron Company for $7,500 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. Aug. 5 Sold merchandise to Baird Corp. for $5,200 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost $4,000. Aug. 8 Purchased merchandise from Waters Corporation for $5,400 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. Aug. 9 Paid $125 cash for shipping charges related to the...
July 1 Purchased merchandise from Boden Company for $6,500 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1. 2 Sold merchandise to Creek Co. for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $542. 3 Paid $110 cash for freight charges on the purchase of July 1. 8 Sold merchandise that had cost $1,800 for $2,200 cash. 9 Purchased merchandise from Leight Co. for $3,000 under...
On June 10, Crane Company purchased $10,000 of merchandise on
account from Blue Company, FOB shipping point, terms 2/10, n/30.
Crane pays the freight costs of $610 on June 11. Damaged goods
totaling $350 are returned to Blue for credit on June 12. The fair
value of these goods is $75. On June 19, Crane pays Blue Company in
full, less the purchase discount. Both companies use a perpetual
inventory system.
Exercise 5-04 a-b (Part Level Submission) (Video) On June...
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