Edwards Co. purchased raw materials with a cost of $95,000 on March 2, 2015. Credit terms...
Edwards Co. purchased raw materials with a cost of $95,000 on
March 2, 2015. Credit terms of 3/20, n/60 applied.
Refer to Exhibit 7-2. If Edwards uses the net method and pays for
the purchase on March 18, 2015, what amount is recorded in the
Purchase Discounts Taken account?
$3,000
$2,850
$0
$5,000
Homework Answers
Answer : $0
Under the Net Method Merchandise Purchase Accounts is Recorded after reducing the Discount . If Payment is Done With in the Discount Period Discount Taken Account Will be Zero. if not Paid Discount Lost account need to create.
Add Answer to:
Edwards Co. purchased raw materials with a cost of $95,000 on
March 2, 2015. Credit terms...
Edwards Co. purchased raw materials with a cost of $95,000 on March 2, 2015. Credit terms...
Edwards Co. purchased raw materials with a cost of $95,000 on March 2, 2015. Credit terms of 3/20, n/60 applied. Refer to Exhibit 7-2. If Edwards uses the net method and pays for the purchase on March 31, 2015, what amount is recorded in the Purchase Discounts Lost account? $4,000 $0 $2,850 $8,000
On March 1, Sather Co. sold merchandise to Boone Co. on account, $31,800, terms 2/15, n/30.
On March 1, Sather Co. sold merchandise to Boone Co. on account, $31,800, terms 2/15, n/30. The cost of the merchandise sold is $19,000. The merchandise was paid for on March 14. Assume all discounts are taken. Required: Journalize the entries for Sather Co. and Boone Co. for the sale, purchase, and payment of amount due. Refer to the appropriate company's Chart of Accounts for exact wording of account titles.
Northwest Fur Co. started 2021 with $95,000 of merchandise inventory on hand. During 2021, $440,000 in...
Northwest Fur Co. started 2021 with $95,000 of merchandise inventory on hand. During 2021, $440,000 in merchandise was purchased on account with credit terms of 3/15, n/45. All discounts were taken. Purchases were all made f.o.b. shipping point. Northwest paid freight charges of $9,100. Merchandise with an invoice amount of $3,800 was returned for credit. Cost of goods sold for the year was $365,000. Northwest uses a perpetual inventory system. Assuming Northwest uses the gross method to record purchases, what...
Purchase Discounts (Gross vs. Net Methods) sample: Otto Carp purchased merchandise during 2014 on credit for...
Purchase Discounts (Gross vs. Net Methods) sample: Otto Carp purchased merchandise during 2014 on credit for $400,000 (2/10, 30). All of the Wann ennep 80,000 was paid within the discount period. The remainder was paid when the 30 de Oro uses a periodic inventory system Prepare the JAS sing the Gross Method de Ner Method Net Method Gross Method 392,000 392,000 Purchases Accounts Payable Purchases Accounts Pavable 400,000 400,000 Problem 2: Purchases Recorded Gross and Net Some of the transactions...
Marcelino Co.'s March 31 inventory of raw materials is $80,000. Raw materials purchases in April are...
Marcelino Co.'s March 31 inventory of raw materials is $80,000. Raw materials purchases in April are $500,000, and factory payroll cost in April is $363,000. Overhead costs incurred in April are: indirect materials, $50,000; indirect labor, $23,000; factory rent, $32,000; factory utilities, $19,000; and factory equipment depreciation, $51,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $635,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Job...
March 4 Stephen Company sold $3,000 of merchandise on account to Elijah Company. The credit terms...
March 4 Stephen Company sold $3,000 of merchandise on account to Elijah Company. The credit terms were 2/10, n/60. The cost of the merchandise was $1,800. March 6 Elijah Company paid transportation cost of $100 on the March 4 purchase from Stephen Company. March 8 Stephen Company sold $2,000 of merchandise on account to Elijah Company. The credit terms were n/40. The cost of the merchandise was $1,400. March 10 Stephen Company paid transportation cost of $100 for delivery of...
Marcelino Co.'s March 31 inventory of raw materials is $85,000. Raw materials purchases in April are...
Marcelino Co.'s March 31 inventory of raw materials is $85,000.
Raw materials purchases in April are $600,000, and factory payroll
cost in April is $367,000. Overhead costs incurred in April are:
indirect materials, $56,000; indirect labor, $29,000; factory rent,
$35,000; factory utilities, $24,000; and factory equipment
depreciation, $55,000. The predetermined overhead rate is 50% of
direct labor cost. Job 306 is sold for $680,000 cash in April.
Costs of the three jobs worked on in April follow.
(Can you please...
March 4 Stephen Company sold $3,000 of merchandise on account to Elijah Company The credit terms...
March 4 Stephen Company sold $3,000 of merchandise on account to Elijah Company The credit terms were 2/10, n/60. The cost of the merchandise was $1,800. March 6 Elijah Company paid transportation cost of $100 on the March 4 purchase from Stephen Company Stephen Company sold $2,000 of merchandise on account to Elijah Company The credit terms were n/40. The cost of the merchandise was $1,400. March 8 March 10 Stephen Company paid transportation cost of $100 for delivery of...
ct to trade discount of 10% and with credit terms of 2015, 1/60. It returned $1,000 (gross price before trade or...
ct to trade discount of 10% and with credit terms of 2015, 1/60. It returned $1,000 (gross price before trade or Wildhorse Industries purchased $8,300 of merchandise on February 1, 2020, w cash discount) on February 4. The invoice was paid on February 13 Assuming that Wildhorse uses the perpetual method for recording merchandise transactions, record the purchase, retum, and payment using the gross method. If no antry required, select "No entry for the accounts and enter for the amounts....
Need help preparing journal entries. 2 Sold merchandise to Creek Co. for $950 under credit terms...
Need help preparing journal entries. 2 Sold merchandise to Creek Co. for $950 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $550. 3 Paid $140 cash for freight charges on the purchase of July 1. 8 Sold merchandise that had cost $1,900 for $2,300 cash. 9 Purchased merchandise from Leight Co. for $2,400 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. 11 Returned $400 of merchandise purchased...
On March 1, Sather Co. sold merchandise to Boone Co. on account, $31,800, terms 2/15, n/30. The cost of the merchandise sold is $19,000. The merchandise was paid for on March 14. Assume all discounts are taken. Required: Journalize the entries for Sather Co. and Boone Co. for the sale, purchase, and payment of amount due. Refer to the appropriate company's Chart of Accounts for exact wording of account titles.
Purchase Discounts (Gross vs. Net Methods) sample: Otto Carp purchased merchandise during 2014 on credit for $400,000 (2/10, 30). All of the Wann ennep 80,000 was paid within the discount period. The remainder was paid when the 30 de Oro uses a periodic inventory system Prepare the JAS sing the Gross Method de Ner Method Net Method Gross Method 392,000 392,000 Purchases Accounts Payable Purchases Accounts Pavable 400,000 400,000 Problem 2: Purchases Recorded Gross and Net Some of the transactions...
Marcelino Co.'s March 31 inventory of raw materials is $80,000. Raw materials purchases in April are $500,000, and factory payroll cost in April is $363,000. Overhead costs incurred in April are: indirect materials, $50,000; indirect labor, $23,000; factory rent, $32,000; factory utilities, $19,000; and factory equipment depreciation, $51,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $635,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Job...
March 4 Stephen Company sold $3,000 of merchandise on account to Elijah Company. The credit terms were 2/10, n/60. The cost of the merchandise was $1,800. March 6 Elijah Company paid transportation cost of $100 on the March 4 purchase from Stephen Company. March 8 Stephen Company sold $2,000 of merchandise on account to Elijah Company. The credit terms were n/40. The cost of the merchandise was $1,400. March 10 Stephen Company paid transportation cost of $100 for delivery of...
Marcelino Co.'s March 31 inventory of raw materials is $85,000.
Raw materials purchases in April are $600,000, and factory payroll
cost in April is $367,000. Overhead costs incurred in April are:
indirect materials, $56,000; indirect labor, $29,000; factory rent,
$35,000; factory utilities, $24,000; and factory equipment
depreciation, $55,000. The predetermined overhead rate is 50% of
direct labor cost. Job 306 is sold for $680,000 cash in April.
Costs of the three jobs worked on in April follow.
(Can you please...
March 4 Stephen Company sold $3,000 of merchandise on account to Elijah Company The credit terms were 2/10, n/60. The cost of the merchandise was $1,800. March 6 Elijah Company paid transportation cost of $100 on the March 4 purchase from Stephen Company Stephen Company sold $2,000 of merchandise on account to Elijah Company The credit terms were n/40. The cost of the merchandise was $1,400. March 8 March 10 Stephen Company paid transportation cost of $100 for delivery of...
ct to trade discount of 10% and with credit terms of 2015, 1/60. It returned $1,000 (gross price before trade or Wildhorse Industries purchased $8,300 of merchandise on February 1, 2020, w cash discount) on February 4. The invoice was paid on February 13 Assuming that Wildhorse uses the perpetual method for recording merchandise transactions, record the purchase, retum, and payment using the gross method. If no antry required, select "No entry for the accounts and enter for the amounts....
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