A Retailer purchased merchandise inventory with an invoice price of RO 80,000 and credit terms are 2/10, n/30. What is the net cost of the goods assuming that if the retailer made the payment within the discount period?
Q: Using a perpetual inventory system, the entry to record the purchase of $30,000 of merchandise on…
A: Inventory: It refers to the items held by an organization which were in various forms like raw…
Q: A wholesaler sold merchandise inventory with in invoice price RO 160,000 to the customer of business…
A: Formula: Cash discount: Goods sold on credit base. If the amount paid with in the discount period…
Q: Merchandise with a list price of $4,200 and costing $2,300 is sold on account, subject to the…
A: Perpetual inventory system: It is a method of inventory management that records real time…
Q: mpany using the periodic inventory system has the following account balances: Merchandise Inventory…
A: Solution: Cost of merchandise purchased is the cost of purchases which is computed as purchase cost…
Q: Sold merchandise on account, $72,500 with terms 2/10, n/30. The cost of the merchandise sold was…
A: Discount amount = Amount receivable x rate of discount = $72,500 x 2% = $1,450
Q: retailer assuming that if the retailer made the payment within the discount period? a. RO 78,400 b.…
A: Discount on payment = invoice price x discount rate = RO 80,000 x 2% = RO 1,600
Q: Based on the information below: a. Seller sold merchandise on account to the buyer, $4,750, terms…
A: The journal entries are prepared to record daily transactions of the business.
Q: What is the net cost of the goods if Marigold Company pays within the discount period?
A: If payment is made within discount period, then Marigold would receive the discount offered by…
Q: Winter Company received quotations from two entities for an item of merchandise as follows: From…
A: Trade discount is that discount which is given on list price of product to all the customers. Under…
Q: Winter Company received quotations from two entities for an item of merchandise as follows: From…
A: Trade discount and cash discount are two different types of discount offered by seller to the buyer.…
Q: Using the perpetual inventory system, journalize the entries for the following selected…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: The following information were found from the records of FDN Company: Net Purchases = P90,000…
A: The discount can be of different types as trade discount and cash discount. The trade discount is…
Q: FN Trading recorded the following events involving a recent purchase of merchandise: Received goods…
A: SOLUTION- NET COST OF PURCHASE = (GROSS PURCHASE - PURCHASE RETURN) * (1-CASH DISCOUNT RATE) +…
Q: Purchase-Related Transactions The Stationery Company purchased merchandise on account from a…
A: 2/10 net 30 means 2% discount will be there if payment is made with in 10 days and no discount after…
Q: Sayers Co. sold merchandise on account to a customer for $90,000 terms 1/10, n/30. The cost of the…
A: Journal entries are used to record the financial transaction. It helps to prepare the ledger and…
Q: Merchandise with an invoice price of $10,000 is purchased subject to terms of 2/10, n/30, FOB…
A: Formula to Calculate net cost of Merchandise (Paid within the period):Net cost of merchandise =…
Q: a. Sampson Co. sold merchandise to Batson Co. on account, $20,100, terms 2/15, net 45. b. The cost…
A: 1)Journal entries in the books of Sampson co. : Sl. No General journal L.F Debit Credit a)…
Q: If merchandise is sold on account to a customer for 1000 terms FOB shipping point, 1/10, n/30 and…
A: Discount on merchandise is given by the seller to buyer, when the seller repay the credit early or…
Q: Kingbird, Inc. purchased merchandise inventory with an invoice price of $13100 and credit terms of…
A: Given, Invoice price = $13,100 Terms = 2/10, n/30
Q: Merchandise with a list price of $4,700 is purchased on account, terms FOB shipping point, 1/10,…
A: 1/10, n/30 means 1% discount is offered is payment is made within 10 days of a 30-day payment…
Q: Merchandise with a list price of $4,200 and costing $2,300 is sold on account, subject to the…
A: Solution: a) & b) Date Particulars Debit Credit Account Receivable A/c 4,200 To…
Q: Travis Company purchased merchandise on account from a supplier for $8,000, terms 2/10, net 30.…
A: Perpetual inventory system: Under this accounting method for companies moving large amounts of…
Q: Assume that Guardian Company uses a periodic inventory system and has these account balances:…
A: Purchases means where the goods has been purchased for the resale purpose. Gross purchases means…
Q: Sampson Co. sold merchandise to Batson Co. on account, $22,900, terms 2/15, net 45. The cost of the…
A: Cash discount = $22,900*2% Cash discount = $458 Sales after cash discount = $22,900 - $458 Sales…
Q: Kingbird, Inc. purchased merchandise inventory with an invoice price of $13100 and credit terms of…
A: SOLUTION 1- GIVEN, PURCHASED AMOUNT = 13100 DISCOUNT RATE = 2%
Q: Winter Company received quotations from two entities for an item of merchandise as follows: From…
A: Credit terms 2/10, n/30 means that customer will get a discount of 2%, if payment is being made in…
Q: Ammar Company, using perpetual inventory method, sold merchandise on account, Rs. 92,500 with terms…
A: when goods are sold with terms 1/10, n/30 it means 1% discount if payment is made within 10 days of…
Q: Sayers Co. sold merchandise on account to a customer for $80,000 terms 2/10, n/30. The cost of the…
A: Sales Discount = Net sales x discount rate = $80,000 x 2% = $1600
Q: Assuming a perpetual inventory system, on November, 01 Dollar Store purchased merchandise for $1,500…
A: Journal entries refer to the recording of transactions in an appropriate way. With the help of…
Q: a. Sampson Co. sold merchandise to Batson Co. on account, $32,20o, terms 2/15, net 45. b. The cost…
A: Journal entries in the books of Sampson Co. sales discount = $32,200* 2% =…
Q: A retailer pays on credit for $650 worth of inventory, terms 3/10, n/40. If the merchandiser pays…
A: Perpetual inventory system: The perpetual inventory system records and updates the inventory after…
Q: Merchandise costing $2,000 is sold for $3,000 on terms 2/10, n/30. If the buyer pays within…
A: Net sales = Sales - Discount Gross profit = Net sales - Cost of goods sold
Q: a. Sampson Co. sold merchandise to Batson Co. on account, $36,000, terms 2/15, net 45. p. The cost…
A: The perpetual inventory system maintains the record for cost of goods sold with every sale…
Q: Hussain Company purchased inventory on account from a supplier for Rs. 65,000, terms 1/10, n/30.…
A: Periodic and perpetual inventory systems are two main systems of inventory valuation. Under periodic…
Q: Merchandise with a list price of $4,700 is purchased on account, terms FOB shipping point, 1/10,…
A: FOB shipping point: Under FOB shipping point the possession of goods are with the seller until the…
Q: Golf World sold merchandise to Mulligans for $10,000, offering terms of 1/15, n/30. Mulligans paid…
A: Given that: Sale value of merchandise = $10,000
Q: Sales-related transactions Sayers Co. sold merchandise on account to a customer for $86,000 terms…
A: The net method records the sales and purchases amount at net value after adjusting for discount to…
Q: A company uses the periodic inventory system and records purchases net of discounts. On April 1, the…
A: Net Purchases = Invoice amount - Discount amount where, Discount amount = Invoice amount x discount…
Q: Gabriela uses the perpetual inventory system. Gabriela purchased merchandise with an invoice price…
A: The foremost reporting of the transactions is to be done in the journal. These are recorded to…
Q: If merchandise is sold on account to a customer for $1,000, terms FOB shipping point, 1/10, n/30,…
A: Lets understand the basics. Seller for attracting early payment, gives the discount term to the…
Q: A wholesaler sold merchandise inventory with in invoice price RO 16,000 to the customer of business…
A: Credit terms 3/10, n/60 means customer will get a discount of 3% if payment is made within 10 days,…
Q: A customer pays on credit for $1,250 worth of merchandise, terms 4/15, n/30. If the customer pays…
A: Perpetual Inventory System: Perpetual Inventory System refers to the inventory system that maintains…
Q: Inventory that cost $500 is sold for $700, with terms of 2/10, n/30. Give the journal entries…
A: Discount = Amount receivable x rate of discount = $700 x 2% = $14
Q: Assume that a company records purchases net of discount. If the company bought merchandise valued at…
A: Purchases are recorded net of discount which means Accounts payable will be recorded as net of…
Q: Global Company sold merchandise for $11,700 on account. The cost of the items sold was $7,900. If…
A: The perpetual inventory system is updated and shows balances after each transection. So merchandise…
Q: journal entry to record the Cost of goods sold in the books of seller under Perpetual inventory…
A: When goods are sold under perpetual inventory system on credit Customer account is debited for…
Q: A retailer returns $400 worth of inventory to a manufacturer and receives a full refund.…
A: Inventory is one of the important current asset for the business. It can be in form of raw…
Q: A wholesaler sold merchandise inventory with in invoice price RO 16,000 to the customer of business…
A: COGS stands for Cost of goods sold which is defined as the direct cost of producing the goods sold…
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- If a retailer made a purchase in the amount of $350 with credit terms of 2/15, n/60. What would the retailer pay in cash if they received the discount?If a retailer purchased inventory in the amount of $750, terms 2/10, n/60, returned $30 of the inventory for a full refund, and received an allowance for $95, how much would the discount be if the retailer remitted payment within the discount window?If a retailer purchased inventory in the amount of $680, terms 3/10, n/60, returned $120 of the inventory for a full refund, and received an allowance for $70, how much would the discount be if the retailer remitted payment within the discount window?
- A customer returns $690 worth of merchandise and receives a full refund. What accounts recognize this sales return, assuming the customer has not yet remitted payment to the retailer? A. accounts receivable, sales returns and allowances B. accounts receivable, cash C. sales returns and allowances, purchases D. sales discounts, cost of goods soldA retailer returns $400 worth of inventory to a manufacturer and receives a full refund. What accounts recognize this return before the retailer remits payment to the manufacturer? A. accounts payable, merchandise inventory B. accounts payable, cash C. cash, merchandise inventory D. merchandise inventory, cost of goods soldA retailer pays on credit for $650 worth of inventory, terms 3/10, n/40. If the merchandiser pays within the discount window, how much will the retailer remit in cash to the manufacturer? A. $19.50 B. $630.50 C. $650 D. $195
- A customer pays on credit for $1,250 worth of merchandise, terms 4/15, n/30. If the customer pays within the discount window, how much will they remit in cash to the retailer? A. $1,250 B. $1,200 C. $50 D. $500A seller sells $800 worth of goods on credit to a customer, with a cost to the seller of $300. Shipping charges are $100. The terms of the sale are 2/10, n/30, FOB Destination. What, if any, journal entry or entries will the seller record for these transactions?Prepare journal entries for the following sales and cash receipts transactions. (a) Merchandise is sold on account for 300 plus 3% sales tax, with 2/10, n/30 cash discount terms. (b) Part of the merchandise sold in transaction (a) for 70 plus sales tax is returned for credit. (c) The balance on account for the merchandise sold in transaction (a) is paid in cash within the discount period.
- A customer returns $870 worth of merchandise and receives a full refund. What accounts recognize this sales return (disregarding the merchandise condition entry) if the return occurs before the customer remits payment to the retailer? A. accounts receivable, sales returns and allowances B. accounts receivable, cash C. sales returns and allowances, merchandise inventory D. accounts receivable, cost of goods soldA customer pays on credit for $1,250 worth of merchandise, terms 4/15, n/30. If the customer pays within the discount window, how much will they remit in cash to the retailer? Assume the perpetual inventory system is used.Merchandise invoiced at $8,900 is sold on terms 1/10, n/30. If the buyer pays within the discount period, what amount will be reported on the income statement as net sales?
