Using the gross method for recording sales, sales are recorded at the amount of the sale less any sales discounts true...
Using the gross method for recording sales, sales are recorded at the amount of the sale less any sales discounts
true or false?
Homework Answers
Answer
--FALSE
--Under Gross Method, Sales are recorded at Gross Amount without deducting any sales discounts. When discount is availed by customer, separate Sales Discount is debited.
--Sales are recorded at the amount of sales less any sales discount in case of NET METHOD of recording sales.
Add Answer to:
Using the gross method for recording sales, sales are recorded at the amount of the sale less any sales discounts true...
When a sale occurs and a company is using the gross method of recording sales discounts,...
When a sale occurs and a company is using the gross method of recording sales discounts, the sales voice (with credit terms granting a discount for early payment) will be recorded at the O a seller's cost of the merchandise. O b. gross amount of the invoice O c. amount of the discount. O d. net amount of the invoice after the discount
True or False. The sale is recorded at the gross amount of the sale, and the...
True or False. The sale is recorded at the gross amount of the sale, and the cash or receivable is recorded at the net amount the company will receive. please explain.
Gross and net methods for sales discounts The following were selected from among the transactions completed...
Gross and net methods for sales discounts The following were selected from among the transactions completed by Strong Retail Group during August of the current year: Aug. S. Sold merchandise on account to M. Quinn, $7,500, terms 2/10, 1/30. The cost of the merchandise sold was $4,200. 9. Sold merchandise on account to R. Busch., $4,000, terms 1/10, n/30. The cost of the merchandise sold was $2,100. 15. Received payment on account for the sale of August 5 less the...
Action Signs recorded credit sales of $10,000 using the gross method. Terms are 2/20, n/30. Select...
Action Signs recorded credit sales of $10,000 using the gross method. Terms are 2/20, n/30. Select the correct statement about the journal entry to record this sale. Accounts receivable increases $10,000. Sales increase $9,800 Sales discounts increase $200 All of the above are correct Net accounts receivable is equal to: The difference between the balance of accounts receivable and bad debt losses incurred in the current period. The difference between the balance of accounts receivable and the amount of uncollected...
2. Explain the reason for using the perpetual net sales method of recording sales versus the...
2. Explain the reason for using the perpetual net sales method of recording sales versus the gross sales method. Explain how a sale would be recorded with a discount on the seller's books (two journals). Give an example. Explain how a company records the payment of an invoice if the payment is received after the invoice discount date has past. Give an example.
Under the net method of recording accounts payable to suppliers, purchase discounts are recorded on the...
Under the net method of recording accounts payable to suppliers, purchase discounts are recorded on the income statements as: Interest expense A component of "other income and expense" A reduction in the value of inventory An increase in cost of goods sold
If the gross margin percentage is 70%; gross margin amount is $161,000; sales discounts are $8,900,...
If the gross margin percentage is 70%; gross margin amount is $161,000; sales discounts are $8,900, and sales returns and allowances are $7,100; gross sales are: $214,000 $230,000 $207,143 $246,000
Vicente Wholesalers made sales using the following list prices and trade discounts. What amount will be...
Vicente Wholesalers made sales using the following list prices and trade discounts. What amount will be recorded for each sale in the sales journal? 1. List price of $590 and trade discount of 20 percent 2. List price of $740 and trade discount of 40 percent 3. List price of $240 and trade discount of 20 percent 1. Amount of sale 2. Amount of sale 3. Amount of sale
Which of the following accounts used in the gross method of accounting for sales discounts is...
Which of the following accounts used in the gross method of accounting for sales discounts is considered a contra account? O a. Allowance for Sales Discounts O b. Accounts Receivable C. Cost of Merchandise Sold O d. Merchandise Inventory
Vicente Wholesalers made sales using the following list prices and trade discounts. What amount will be...
Vicente Wholesalers made sales using the following list prices and trade discounts. What amount will be recorded for each sale in the sales journal? List price of $800 and trade discount of 20 percent List price of $2,080 and trade discount of 40 percent List price of $1,500 and trade discount of 25 percent
When a sale occurs and a company is using the gross method of recording sales discounts, the sales voice (with credit terms granting a discount for early payment) will be recorded at the O a seller's cost of the merchandise. O b. gross amount of the invoice O c. amount of the discount. O d. net amount of the invoice after the discount
Gross and net methods for sales discounts The following were selected from among the transactions completed by Strong Retail Group during August of the current year: Aug. S. Sold merchandise on account to M. Quinn, $7,500, terms 2/10, 1/30. The cost of the merchandise sold was $4,200. 9. Sold merchandise on account to R. Busch., $4,000, terms 1/10, n/30. The cost of the merchandise sold was $2,100. 15. Received payment on account for the sale of August 5 less the...
Action Signs recorded credit sales of $10,000 using the gross method. Terms are 2/20, n/30. Select the correct statement about the journal entry to record this sale. Accounts receivable increases $10,000. Sales increase $9,800 Sales discounts increase $200 All of the above are correct Net accounts receivable is equal to: The difference between the balance of accounts receivable and bad debt losses incurred in the current period. The difference between the balance of accounts receivable and the amount of uncollected...
2. Explain the reason for using the perpetual net sales method of recording sales versus the gross sales method. Explain how a sale would be recorded with a discount on the seller's books (two journals). Give an example. Explain how a company records the payment of an invoice if the payment is received after the invoice discount date has past. Give an example.
If the gross margin percentage is 70%; gross margin amount is $161,000; sales discounts are $8,900, and sales returns and allowances are $7,100; gross sales are: $214,000 $230,000 $207,143 $246,000
Vicente Wholesalers made sales using the following list prices and trade discounts. What amount will be recorded for each sale in the sales journal? 1. List price of $590 and trade discount of 20 percent 2. List price of $740 and trade discount of 40 percent 3. List price of $240 and trade discount of 20 percent 1. Amount of sale 2. Amount of sale 3. Amount of sale
Which of the following accounts used in the gross method of accounting for sales discounts is considered a contra account? O a. Allowance for Sales Discounts O b. Accounts Receivable C. Cost of Merchandise Sold O d. Merchandise Inventory
Most questions answered within 3 hours.
-
(Expected rate of return and risk) Carter Inc. is evaluating a
security. Calculate the investment’s expected...
asked 2 hours ago -
What specific indicators can point to lack of progress for
African Americans in American society?
asked 3 hours ago -
1-The Electrons in a beam are moving at 2.7×108 m/s in an
electric field of 15000...
asked 3 hours ago -
A gas tank is a vertical cylinder. It has a radius of 1m, a
height of...
asked 4 hours ago -
Accent Software faces the following conditions. All of these
support Accent’s use of a market-penetration pricing...
asked 5 hours ago -
A mathematically inclined friend emails you the following
instructions: "Meet me in the cafeteria the first...
asked 5 hours ago -
A monopoly sells in two countries . The demand curves in the two
countries are p1...
asked 6 hours ago -
A .15kg rubber ball is bounced off a wall. Before hitting the
wall, the ball moves...
asked 6 hours ago -
A manufacturing company preparing to build a new plant is
considering three potential locations for it....
asked 6 hours ago -
B. If compound Y has approximately the same values of solubility
in toluene as compound X,...
asked 7 hours ago -
Oscar Inc. has inventory in Japan valued at 39,051,000 Yen one
year ago. One year ago...
asked 7 hours ago -
If Canada suffered from "fundamental disequilibrium," and its
government choose not to devalue its currency, a...
asked 7 hours ago