"installment sales method
Q: Garden Co. uses the installment sales method. Garden Co. sells a good costing ₱10,000 for an…
A: Gross profit is the benefit procured by the organization from working exercises. Backhanded costs…
Q: Zell Company had sales of $1,800,000 and related cost of merchandise sold of $1,150,000 for its…
A: a.
Q: JBL undertook the following transactions for the month of Nov Purchased merchandise or $80,000 less…
A: Net purchase = purchase x (1- trade discount rate) x (1- trade discount rate) = 80000*(1-0.95)…
Q: On July 15, 2021, the Nixon Car Company purchased 1,000 tires from the Harwell Company for $50 each.…
A: As you posted multiple sub parts in question we are answering first 3 sub parts only kindly repost…
Q: On April 2, Kelvin sold $35000 of inventory items on credit with the terms 2/10, net 30. Payment on…
A: Option d is correct.
Q: Grandpa Clocks, Inc. (GCI), is a retailer of wall, mantle, and grandfather clocks. Assume GCI sells…
A: Given, Cost Price of grandfather watch = $ 10,000 The selling price of grandfather watch = $14,000…
Q: Cucu Company sells gift certificates redeemable only when merchandise is purchase. The certificates…
A: Unearned revenue is one of the current liability of the business, which means revenue received in…
Q: Mogul Company ships merchandise to Ski Outfit in a consignment arrangement. The arrangement…
A: Inventory at the year end = Cost of inventory sent to consignee - Cost of inventory sold by…
Q: Alliance Corporation purchased inventory with an invoice price of $22,000 and credit terms of 1/10,…
A: Formula: Discount amount = Invoice amount x Discount rate
Q: 1. During the year, Fall Company purchased merchandise having a gross invoice cost of P1,000,000.…
A: There are different methods of recording the inventory transaction.
Q: When a sale is made with the credit terms of 2/10, net 30, the discount of ____% will be used if…
A: Solution:- 1)When a sale is made with the credit terms of 2/10, net 30, the following percentage of…
Q: Shoemart Company issues gift certificates in denominations of P50, P100, P500 and P1,000. These…
A: Gift certificates are certificates that are being sold by the business for a particular price. Their…
Q: The expenses other than interest expense of Ratio Company for the current year is 40% of cost of…
A: The question is based on the concept of Financial Management.
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: The following costs were among those incurred by Woodcroft Corporation during 2007: Merchandise…
A: Cost system is the system which is designed to evaluate the monitor the cost incurred by the…
Q: Robles Co. sells P1,000 of inventory to Salas Co.for cash. Robles paid P650 for the merchandise.…
A:
Q: Shaw sold 1500 units of XOM for $20 per unit plus 8% sales taxes to Polo Company in cash. Sales tax…
A: As posted multiple independent questions we are answering only first question kindly repost the…
Q: Vernon Industries sells merchandise to dealers on a consignment basis. Shipping costs are chargeable…
A: 4) Value of inventory in the hands of the consignee - Particulars Amount 1) Unit cost 1000000…
Q: Alliance Corporation purchased inventory with an invoice price of $22,000 and credit terms of 1/10,…
A: Formula: Discount amount = Invoice amount x Discount rate.
Q: 1. During the year, Fall Company purchased merchandise having a gross invoice cost of P1,000,000.…
A: As per the net method for recording journal entries, the sales and purchase transactions are…
Q: During the current year, merchandise is sold for $43000 cash and for $307000 on account. The cost of…
A: Gross profit is considered as the excess of revenue over the cost of merchandise sold.
Q: ABC Company sells all its merchandise on credit. Given the following information, what is the…
A: Given data, Profit Margin = 5.8% Average Collection Period = 53 days Accounts receivable = 250,000…
Q: On August 5, Oriole Ltd. sells goods for $1530 and the cost to Oriole was $700. Oriole expects a…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Redlands Inc. sold inventory for $100 on credit and charged 5% sales tax on the sale. The amount of…
A: Sales Revenue :— It is the income that is earned or received from sale of goods to customer or…
Q: Reyes Company, a retail supplier of auto parts, purchased $30,000 of inventory on credit from Rock…
A: Discounts are given to promote sales and to encourage quick payments
Q: Best Company had the following transactions in March 2020: Purchased merchandising amounting to…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: Describe below are certain transactions of Blue corporation. The company uses the periodic…
A: The amortization of note is a process where the premium or discounted amount is assigned to the…
Q: On October 5, Pronghorn Corporation buys merchandise for resale on account from Culver Corporation.…
A: Perpetual Inventory System: It is an inventory estimation system where inventory gets continuously…
Q: Rowland company reported the following balances at December 31,2020 sales return abd allowance 5000…
A: Gross profit = Net sales - Cost of goods sold where, Net sales = Gross sales - sales return and…
Q: On January 1, 20x1 Plaka Co. acquired goods for sale in the ordinary course of business for…
A: Given information, Purchase price = P250,000 Refundable purchase taxes included in above = 5000…
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: 1. During the year, Fall Company purchased merchandise having a gross invoice cost of P1,000,000.…
A: Journal entry: An act of recording the daily transaction of a firm in the journal is called journal…
Q: On May 11, Sharjah Co. accepts delivery of $40,000 of merchandise it purchases for resale from…
A: As the question provides that both the company follow the perpetual inventory system. The following…
Q: Golf World sold merchandise to Mulligans for $10,000, offering terms of 1/15, n/30. Mulliganspaid…
A: Step 1 Journal entries are the part of bookkeeping.
Q: Lewis Co. sold merchandise to AdCo for $60,000 and received $60,000 for that sale one month later.…
A: Given information is: Lewis Co. sold merchandise to AdCo for $60,000 and received $60,000 for that…
Q: Alliance Corporation purchased inventory with an invoice price of $22,000 and credit terms of 1/10,…
A: Invoice Price = 22,000 Credit Terms = 1/10,n/15 1% discount will be Provided if payment has made…
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: The following information applies to the Grady Company for the current year: Purchases of…
A: We have the following information: Purchases of merchandise for resale: $300,000 Merchandise…
Q: ABC Corporation purchases 3,000 units of inventory. Payment to its supplier is $30.00 per unit. In…
A: Given: Number of unit purchase = 3000 units Payment to Supplier = $30.00 So, the total amount paid…
Q: Home Surplus, Inc. began operation in May, 2011 by selling exclusively on the installment basis.…
A: Under Installment Sales, revenue will be recognized only when cash is received against sale on…
Q: Garden Co. uses the installment sales method. Garden Co. sells a good costing ₱10,000 for an…
A: Gross profit is the benefit procured by the organization from working exercises. Backhanded costs…
Q: Hobart Sign Company began the month of June with an inventory of 50 signs that cost a total of…
A: First-in, First-out Method: In this method, we sell the goods purchased first and then goods…
Q: Vernon Industries sells merchandise to dealers on a consignment basis. Shipping costs are chargeable…
A: Consignment seems to be a contractual agreement wherein a company, also known as a consignee, offers…
Q: Garden Co. uses the installment sales method. Garden Co. sells a good costing P10,000 for an…
A: Gross profit means the difference between the sale revenue and cost of production. Sale means the…
Q: FDN Trading undertook the following transactions for the month of November. Purchased merchandise…
A: Gross purchase = List price x (1 - trade discount rate) x (1 - trade discount rate) =…
Q: Heller Company offers an unconditional return policy to its customers. During the current period,…
A: The net sales is the actually sales that has taken place by the organization after deducting all the…
Q: ABC Company sells gift certificates which can be use to purchase their merchandise. The gift…
A: answers Unearned revenue from gift cards as on 1/1/19 - 500,000 When gift certificates are…
Q: 1. During the year, Fall Company purchased merchandise having a gross invoice cost of P1,000,000.…
A: The question is related with Perpetual Inventory method and Net Method for recording Inventory…
Q: ABC Company sells gift certificates which can be use to purchase their merchandise. The gift…
A: Revenue: Revenue is the amount earned by the company by selling goods or providing services to the…
Aqua Co, uses the "installment sales method." Aqua sells an inventory costing 750,000 for 1,000,000.
If Aqua Co. recognizes realized gross profit of 180,000 how much are the total collections?
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- An entity was offering premium as a sales promotion scheme and that during the year it purchased 10,000 premiums for P20 each. Customers need to remit 10 boxes and P5 to redeem one premium. Assume there were no redemptions during the first year of the promotion, which of the following statements would be correct if it uses the revenue approach? a. The entity will report an inventory of premiums at the net cost of P15. Tb. he entity will report an estimated liability equal to the premium expense. c. None of the other choices are correct. Td. he entity will not report any expense since there were no redemption. e. No accounting liability shall be recognized since there were no redemptions.During the current year, mnerchandise is sold for $714000. The cost of the merchandise sold is $474000. What is the amount of the gross profit? Add your answerMerchandise costing $2,000 is sold for $3,000 on terms 2/10, n/30. If the buyer pays within thediscount period, what amount will be reported on the income statement as net sales and as grossprofit?
- Refer to the above transaction. Shaw paid Reynold Company in full within discount period. Provide the necessary journal entry to record the transaction. Debit Credit Shaw sold 1500 units of XOM for $20 per unit plus 8% sales taxes to Polo Company in cash. Sales tax was not included in price. Each unit of XOM had cost company $10.40. Provide the necessary journal entry to record the transaction. Debit Credit The following information pertains merchandise inventory of Bloom Company at the end of year.Apply Lower of Cost or Market rule and provide the necessary adjusting entry for adjustment of inventory account balance in the space provided on the Answer Sheets. Item Quantity on hand Unit Cost Selling Price Replacement Cost Net Realizable Value (Ceiling Price) Net Realizable Value Less Normal Profit (Floor Price) LCM Zoom 300 $90 $120 $105 $100 $75 Zap 600 $60…During the current year, merchandise is sold for P86,000 cash and for P93,950 on account. The cost of the merchandise sold is P76,240. What is the amount of the gross profit?Required to answer.On June 1, 2023, AAA Company sold merchandise with an invoice price of 5,000,000 to a customer. The entity allowed trade discounts of 15%, and 10%. Credit terms were 3/10, n/30 and the sale was made FOB destination. AAA Company paid 100,000 of the delivery cost. a. Compute the total amount of purchases to be included on the buyer’s inventory in the determination of cost of goods available for sale if payment was made beyond the discount period. b. What is the full amount received by AAA company if payment was made on June 11, 2023?
- Zonker Inc. purchases 500 units of an item at an invoicecost of $30,000. What is the cost per unit? If the goods areshipped f.o.b. shipping point and the freight bill was$1,500, what is the cost per unit if Zonker Inc. pays thefreight charges? If these items were bought on 2/10, n/30terms and the invoice and the freight bill were paid withinthe 10-day period, what would be the cost per unit?Merchandise costing $2,000 is sold for $3,000 on terms 2/30, n/60. If the customer pays within the discount period, what amount will be reported on the income statement as net sales and as gross profit? Net Sales Gross ProfitHeller Company offers an unconditional return policy to its customers. During the current period, the company records total sales of $850,000, with a cost of merchandise to Heller of $340,000. Based on past experience, Heller Company expects 4% of sales to be returned. How much gross profit will Heller Company recognize for the current period? Select one: A. $510,000 B. $816,000 C. $489,600 D. $360,400 E. $850,000
- The Wheatland Company purchased merchandise on account from a supplier for $30,000, terms 1/10, n/30. The Wheatland Company returned $8,000 of the merchandise and received full credit.a. What is the amount of cash required for the payment within the discount period?b. Under a perpetual inventory system, what account is credited by The Wheatland Company to record the return?Heller Company offers an unconditional return policy to its customers. During the current period, the company records total sales of $935,000, with a cost of merchandise to Heller of $374,000. Based on past experience, Heller Company expects 4% of sales to be returned. How much in net sales will Heller Company recognize for the current period?The following accounts of Rex Company are as follows: Sales P480,000; Cost of goods sold P300,000; Sales discounts P20,000; Sales returns and allowances P15,000; Purchase discounts P5,000; Purchase returns and allowances P7,000; Selling Expenses P40,000; General & Administrative expense P45,000; Interest income P5,000. What is the net sales? P400,000 P445,000 P415,000 P255,000