On February 14, 2017, Prime Company sold 50 air-conditioning units to L&P Heating and Cooling. The...
On February 14, 2017, Prime Company sold 50 air-conditioning
units to L&P Heating and Cooling. The units were shipped and
their titles were transferred to L&P Heating and Cooling on
February 14, 2017. The units are listed for retail at $700 each,
but L&P was granted a 30% trade discount. All of Prime's sales
are subject to terms 2/10, n/30. Prime uses the net method of
accounting for sales discounts.
Required:
a. Prepare the journal entry to record the sale on February 14,
2017. (4 pts)
b. Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on February 22, 2017. (8 pts)
c. Prepare the journal entry to record receipt of the payment,
assuming the correct amount was received on March 10, 2017. (8
pts)
Homework Answers
Add Answer to:
On February 14, 2017, Prime Company sold 50 air-conditioning
units to L&P Heating and Cooling. The...
SHORT ANSWER. Write the word or phrase that best completes each st o rmwer the que...
SHORT ANSWER. Write the word or phrase that best completes each st o rmwer the que B) Rene Hernition: On February 14, 2018, Prime Company sold 50 air-conditioning units to LAP Heating and Cooling. The units list for $700 each, but the customer was granted a 30% trade discount. All of Prime's sales are subject to terms 2/10, Required: 1. Using the current revenue recognition standards, prepare the journal entry to record the sale. 2. Prepare the journal entry to...
Given the following information, compute the amount of cash remitted by the customer on February 21....
Given the following information, compute the amount of cash remitted by the customer on February 21. Feb 14 - Sale on credit, terms of 1/15, n/30 - $12,000 Feb 19 - Allowance granted due to some items being damaged - $600 Feb 21 - Payment in full received from customer - ????? a.$11,286 b.$12,000 c.$11,996 d.$11,400 Goods held on consignment for another company should be included in the inventory of the company holding the merchandise. True False To record the...
What are the journey entries? On March 12, 2021, Admiral Electronics sold 20 fax machines to...
What are the journey
entries?
On March 12, 2021, Admiral Electronics sold 20 fax machines to Cool Stuff Co. for $10,000, subject to terms 2/10, n/30. Admiral uses the gross method of accounting for sales discounts. Required: 1. Prepare the journal entry to record the sale. 2 & 3. Prepare the journal entries to record receipt of the payment, assuming the correct amount was received on March 20, 2021 and April 5, 2021. Complete this question by entering your answers...
Cool-IT Ltd. manufactures and sells air conditioning equipment to retailers across North America. In 2020, Cool-IT...
Cool-IT Ltd. manufactures and sells air conditioning equipment
to retailers across North America. In 2020, Cool-IT signed a
two-year contract with BigMart Ltd. to supply it with 63,300 units
at a price of $78 per unit. Cool-IT’s cost to manufacture these
units is $51. The following schedule summarizes the production,
delivery, and payments in relation to the contract. Production
costs are recorded to inventory:
2020
2021
Total
Air conditioning units delivered
41,500
21,800
63,300
Production costs incurred
$2,116,500
$1,111,800
$3,228,300...
Cool-IT Ltd. manufactures and sells air conditioning equipment to retailers across North America. In 2020, Cool-IT...
Cool-IT Ltd. manufactures and sells air conditioning equipment
to retailers across North America. In 2020, Cool-IT signed a
two-year contract with BigMart Ltd. to supply it with 63,300 units
at a price of $78 per unit. Cool-IT’s cost to manufacture these
units is $51. The following schedule summarizes the production,
delivery, and payments in relation to the contract. Production
costs are recorded to inventory:
2020
2021
Total
Air conditioning units delivered
41,500
21,800
63,300
Production costs incurred
$2,116,500
$1,111,800
$3,228,300...
Chapter 07 Homework Saved 14 Liang Company began operations on January 1, 2017. During its first two years, the company...
Chapter 07 Homework Saved 14 Liang Company began operations on January 1, 2017. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows. 2017 points a. Sold $1,348,400 of merchandise (that had cost $981,600) on credit, terms n/30. b. Wrote off $20,200 of uncollectible accounts receivable. c. Received $669,600 cash in payment of accounts receivable. d. In adjusting the accounts on December...
Required information Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on...
Required information Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on November 17, 2018. The units have a list price of $640 each, but Thomas was given a 25% trade discount. The terms of the sale were 3/10, 1/30. Required: 1. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2018, assuming that the gross method of accounting for cash discounts is used 2....
On June 3, 2017, Hunt Company sold to Ann Mount merchandise having a sales price of...
On June 3, 2017, Hunt Company sold to Ann Mount merchandise having a sales price of $8,000 (cost $6,000) with terms of n/60, f.o.b. shipping point. Hunt estimates that merchandise with a sales value of $800 will be returned. An invoice totaling $120 was received by Mount on June 8 from Olympic Transport Service for the freight cost. Upon receipt of the goods, on June 8, Mount returned to Hunt $300 of merchandise containing flaws. Hunt estimates the returned items...
LATOR FULL SCREEN PRINTER VERSION4 BACK NEXT Exercise 14-10 On January 1, 2017, Carla Company sold...
LATOR FULL SCREEN PRINTER VERSION4 BACK NEXT Exercise 14-10 On January 1, 2017, Carla Company sold December 31 of each year. Carla Company allocates interest 12% bonds having a maturity value of $580,000 for $623,973, which provides the basis. and unamortized discount or premium on the effective-interest Prepare the journal entry at the date of the bond issuance. (Round answer to o decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter...
Presented below are transactions related to Bogner Company. 1. On December 3, Bogner Company sold $570,000...
Presented below are transactions related to Bogner Company.
1. On December 3, Bogner Company sold $570,000 of merchandise
on account to Maris Co., terms 2/10, n/30, FOB shipping point. The
cost of the merchandise sold was $350,000.
2. On December 8, Maris Co. was granted an allowance of
$20,000 for merchandise purchased on December 3.
3. On December 13, Bogner Company received the balance due
from Maris co.
Prepare the journal entries to record these transactions on the books of...
SHORT ANSWER. Write the word or phrase that best completes each st o rmwer the que B) Rene Hernition: On February 14, 2018, Prime Company sold 50 air-conditioning units to LAP Heating and Cooling. The units list for $700 each, but the customer was granted a 30% trade discount. All of Prime's sales are subject to terms 2/10, Required: 1. Using the current revenue recognition standards, prepare the journal entry to record the sale. 2. Prepare the journal entry to...
What are the journey
entries?
On March 12, 2021, Admiral Electronics sold 20 fax machines to Cool Stuff Co. for $10,000, subject to terms 2/10, n/30. Admiral uses the gross method of accounting for sales discounts. Required: 1. Prepare the journal entry to record the sale. 2 & 3. Prepare the journal entries to record receipt of the payment, assuming the correct amount was received on March 20, 2021 and April 5, 2021. Complete this question by entering your answers...
Cool-IT Ltd. manufactures and sells air conditioning equipment
to retailers across North America. In 2020, Cool-IT signed a
two-year contract with BigMart Ltd. to supply it with 63,300 units
at a price of $78 per unit. Cool-IT’s cost to manufacture these
units is $51. The following schedule summarizes the production,
delivery, and payments in relation to the contract. Production
costs are recorded to inventory:
2020
2021
Total
Air conditioning units delivered
41,500
21,800
63,300
Production costs incurred
$2,116,500
$1,111,800
$3,228,300...
Cool-IT Ltd. manufactures and sells air conditioning equipment
to retailers across North America. In 2020, Cool-IT signed a
two-year contract with BigMart Ltd. to supply it with 63,300 units
at a price of $78 per unit. Cool-IT’s cost to manufacture these
units is $51. The following schedule summarizes the production,
delivery, and payments in relation to the contract. Production
costs are recorded to inventory:
2020
2021
Total
Air conditioning units delivered
41,500
21,800
63,300
Production costs incurred
$2,116,500
$1,111,800
$3,228,300...
Chapter 07 Homework Saved 14 Liang Company began operations on January 1, 2017. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows. 2017 points a. Sold $1,348,400 of merchandise (that had cost $981,600) on credit, terms n/30. b. Wrote off $20,200 of uncollectible accounts receivable. c. Received $669,600 cash in payment of accounts receivable. d. In adjusting the accounts on December...
Required information Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on November 17, 2018. The units have a list price of $640 each, but Thomas was given a 25% trade discount. The terms of the sale were 3/10, 1/30. Required: 1. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2018, assuming that the gross method of accounting for cash discounts is used 2....
On June 3, 2017, Hunt Company sold to Ann Mount merchandise having a sales price of $8,000 (cost $6,000) with terms of n/60, f.o.b. shipping point. Hunt estimates that merchandise with a sales value of $800 will be returned. An invoice totaling $120 was received by Mount on June 8 from Olympic Transport Service for the freight cost. Upon receipt of the goods, on June 8, Mount returned to Hunt $300 of merchandise containing flaws. Hunt estimates the returned items...
LATOR FULL SCREEN PRINTER VERSION4 BACK NEXT Exercise 14-10 On January 1, 2017, Carla Company sold December 31 of each year. Carla Company allocates interest 12% bonds having a maturity value of $580,000 for $623,973, which provides the basis. and unamortized discount or premium on the effective-interest Prepare the journal entry at the date of the bond issuance. (Round answer to o decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter...
Presented below are transactions related to Bogner Company.
1. On December 3, Bogner Company sold $570,000 of merchandise
on account to Maris Co., terms 2/10, n/30, FOB shipping point. The
cost of the merchandise sold was $350,000.
2. On December 8, Maris Co. was granted an allowance of
$20,000 for merchandise purchased on December 3.
3. On December 13, Bogner Company received the balance due
from Maris co.
Prepare the journal entries to record these transactions on the books of...
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