College Accounting (Book Only): A Career Approach
12th Edition
ISBN: 9781305084087
Author: Cathy J. Scott
Publisher: Cengage Learning
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Question
Chapter 10, Problem 3A
1.
To determine
Identify the buyer from G Company’s invoice.
2.
To determine
Identify who is paying the freight from G Company’s invoice.
3.
To determine
Identify the customer’s order number from G Company’s invoice.
4.
To determine
Identify the percentage of goods bought from G Company’s invoice.
5.
To determine
Explain the credit terms.
6.
To determine
Determine the amount the buyer has to pay if the money is received within the discount period.
7.
To determine
Identify the dollar amount of discount.
8.
To determine
Identify who receives the discount.
9.
To determine
Identify the due date for payment to get the discount.
10.
To determine
Explain why a seller gives discount to a buyer.
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Students have asked these similar questions
In a system like QuickBooks Online, when should you create an invoice?
a. When a customer purchases goods or services and pays you in cash at the time of the sale
b. When a customer purchases goods or services but does not pay you at the time of the sale
c. When a customer purchases goods or services and pays you by check or credit card at the time of the sale
d. When a customer purchases goods or services, but you don't want to record the sale as final
If a customer pays with a credit card and the service has been provided, which of the following accounts will be used to record the sales entry for this transaction? Elaborate in your response asides from choosing the correct choice.
A. Cost of Goods Sold, Merchandise Inventory, Sales Revenue
B. Sales Revenue, Credit Card Expense, Accounts Receivable
C. Accounts Receivable, Merchandise Inventory, Credit Card Expense
D. Cost of Goods Sold, Credit Card Expense, Sales Revenue
Some business transactions purchase goods and services from the seller, on credit. The buyer of these goods and services, in good faith, intends to pay for the merchandise acquired or services rendered, on time. However, the seller knowing this is not always possible, will provide an incentive to the buyer. After reading “Purchase of Merchandise on Account”, page 146 to 148, illustrate and explain the ‘incentive’ a buyer receives to pay his bill.
Chapter 10 Solutions
College Accounting (Book Only): A Career Approach
Ch. 10 - What do credit terms of 2/10, n/30 mean? 210 days...Ch. 10 - What is the entry to record the cash received on a...Ch. 10 - Prob. 3QYCh. 10 - Which of the following is not an advantage of the...Ch. 10 - Prob. 5QYCh. 10 - What is the normal balance for each of the...Ch. 10 - What does an X under the total of a special...Ch. 10 - Prob. 3DQCh. 10 - In a cash receipts journal, both the Accounts...Ch. 10 - If a cash payments journal is supposed to save...
Ch. 10 - Describe the posting procedure for a cash payments...Ch. 10 - Prob. 7DQCh. 10 - Prob. 8DQCh. 10 - For the following purchases of merchandise,...Ch. 10 - Describe the transactions recorded in the...Ch. 10 - Describe the transactions recorded in the...Ch. 10 - Record the following transactions in general...Ch. 10 - Prob. 5ECh. 10 - Record general journal entries to correct the...Ch. 10 - Label the blanks in the column heads as either...Ch. 10 - Describe the transaction recorded.Ch. 10 - Prob. 9ECh. 10 - Indicate the journal in which each of the...Ch. 10 - The following transactions were completed by...Ch. 10 - Preston Company sells candy wholesale, primarily...Ch. 10 - MacDonald Bookshop had the following transactions...Ch. 10 - The following transactions were completed by...Ch. 10 - The following transactions were completed by...Ch. 10 - The following transactions were completed by Yang...Ch. 10 - C. R. McIntyre Company sells candy wholesale,...Ch. 10 - Prob. 3PBCh. 10 - The following transactions were completed by Yang...Ch. 10 - Prob. 5PBCh. 10 - Prob. 1ACh. 10 - You are the manager of the Accounts Receivable...Ch. 10 - Prob. 3ACh. 10 - Suppose we collected cash from a charge customer...Ch. 10 - Prob. 1CP
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Similar questions
- If a customer pays with a credit card and the service has been provided, which of the following accounts will be used to record the sales entry for this transaction? A. Cost of Goods Sold, Merchandise Inventory, Sales Revenue B. Sales Revenue, Credit Card Expense, Accounts Receivable C. Accounts Receivable, Merchandise Inventory, Credit Card Expense D. Cost of Goods Sold, Credit Card Expense, Sales Revenuearrow_forwardWhich two accounts are used to recognize shipping charges for a buyer, assuming the buyer purchases with cash and the terms are FOB Shipping Point? A. delivery expense, cash B. merchandise inventory, cash C. merchandise inventory, accounts payable D. The buyer does not record anything for shipping since it is FOB Shipping Point.arrow_forwardWhen goods are sold on credit the account of a customer is called : Select one: a. Purchases Return b. Account Payable c. Sales Return d. Account Receivablearrow_forward
- If a customer pays with a credit card and the service has been provided, which of the following accounts will be used to record the sales entry for this transaction? Cost of Goods Sold, Merchandise Inventory, Sales Revenue Sales Revenue, Credit Card Expense, Accounts Receivable Accounts Receivable, Merchandise Inventory, Credit Card Expense Cost of Goods Sold, Credit Card Expense, Sales Revenuearrow_forwardIf you are the seller will you provide discount for customers? Why or why not? What type of discount will you provide for your customers? How will you account for this discount? Answer this by giving a sample problem including the debit and credit entries. If you are the buyer, will you get discounts for your suppliers? Why or why not?arrow_forwardAs a student of financial Accounting, if a supplier has sold you goods on credit, take us through the process you would go through to get it recorded in Trial balancearrow_forward
- Using the following invoice answer the following questions. 1. How would this transaction be journalized by the seller? Identify the accounts, the amounts and whether the entry is a debit or credit. 2. What journal should the seller use for this transaction? EXPLAIN. 3. What is the business name of the vendor (seller)? How do you know this? 4. What is the business name of the merchandiser (buyer)? How do you know this? 5. P.O. Number stands for Purchase Order Number. What is a purchase order? Which part, buyer or seller, typically creates the purchase order? 6. Freight designation is F.O.B. Destination. Who is responsible for paying the shipper? 7. Explain what the terms of sale 2/10, n/30 represents? 8. If the merchandiser pays within 10 days of the invoice date how much will they actually pay? Explain your answer. 9. Explain why the merchandiser is not paying sales tax. 10. What information from this invoice would be entered in the Source Document column of the journal?…arrow_forwardWhen a customer returns merchandise previously purchased on credit, the entry for the seller to record the return requires a debit to the _________ account and a credit to the __________ account? Save for Laterarrow_forwarda) Explain in detail different types of documentation that the business would expect to change hands in purchase, sales, purchase returns and sales returns etc. b) Show the model of atleast one Credit Sales invoice, Purchase invoice, Debit note and Credit note. (you can use imaginary figure) c) What are policies for trade discount/cash discount, Is there any products are subject to trade discount and why? Explain the terms and conditions in detail.arrow_forward
- What happens when a client (buyer) returns goods bought on credit?arrow_forwardWhat is the totals credits and total debits? Also answer the following questions: Answer the following questions using the area provided. 1) Describe the type of transaction that is recorded in the Sales journal. What is happening and who is involved? 2) When merchandise is sold on account what account is debited? What type of account is this and what does it reflect 3) Why is Sales Tax Payable considered a liability to the business? 4) Why would the business want to record the customer name in the sales journal Account Debited column?arrow_forwardWhat accounts are affected when goods are sold on credit? (Check all that apply) Accounts Receivable Cash Revenue Owner's Withdrawalsarrow_forward
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