Ivanhoe Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales returns extends 60 days. On February 10, 2021, a customer purchases $3000 of products (cost $1500). Assuming that based on prior experience, estimated returns are 10%. The journal entry to record the expected sales return and cost of goods sold includesa O debit to Cash and a credit to Sales Revenue of $3000. O debit to Cost of Goods Sold and credit to Inventory for $1500. O debit to Sales Returns and Allowance of $300 and a credit to Allowance for Sales Returns and Allowances of $150. O credit to Estimated Inventory Returns of $150.
Q: Dean Company regularly buys sweaters from Mill Company and is allowed a trade discount of 20% and…
A: Solution: Dean should report purchase at = Net price + Freight Net price = P900,000 * (1-0.20)…
Q: Chico Company allows its customers to return merchandise within 30 days of purchase. *At December…
A:
Q: Diana’s Designs just recently opened as an upscale dress shop in northeast Florida. Theowner is…
A:
Q: Statz Company had sales of $1,600,000 and related cost of goods sold of $1,150,000 for its first…
A: Customer refunds payable=Sale×1.5%=$1,600,000×1.5%=$24,000
Q: Dobbs Wholesale Antiques makes all sales under terms of FOB shipping point. The company usually…
A: FOB shipping point or free on board shipping point means the ownership of goods gets passed on from…
Q: A large retailer obtains merchandise under the credit terms of 3/10, net 30, but routinely takes 60…
A: Every business needs goods and services to be purchased for its business. It can be on cash basis or…
Q: Mountaina, an outerwear retailer, offers a markdown of 25% on parka jackets during their semi-annual…
A: Original Price of Jacket = $340 Markdown Under Seni annual Sale = 25% Markdown under clearance sale…
Q: In an effort to increase sales, DARIO Company inaugurated a sales promotional campaign on June 30,…
A: Liabilities means the obligations and dues which needs to be paid off by the business. Premium…
Q: On June 3, 2020, Nash Company sold to Ann Mount merchandise having a sales price of $7,200 (cost…
A: Journal entry is a process of recording the business transactions in the books of accounts for the…
Q: Bahati Masimba Ltd are retailers who sell tiles. During the month of July to September 2019, there…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub- parts for…
Q: Prepare journal entry to record the expected sales return and cost of goods sold? Pinpong curtains…
A: Journal entries was the first initial step in recording transactions in the books where every…
Q: A large retailer obtains merchandise under the credit terms of 1/15, net 35, but routinely takes 70…
A: The term trade credit refers to the amount of time period that one seller provides to its customers…
Q: On April 2, 2021, Unbreakable Gifts Inc. shipped merchandise costing $40,000 to The Gift Warehouse…
A: On April 2, 2021, Unbreakable Gifts Inc. shipped merchandise costing $40,000 to The Gift Warehouse…
Q: Sandhill Choice sells natural supplements to customers with an unconditional sales return if they…
A: Revenue recognition is an basic accounting concept where revenue needs to be properly recorded for…
Q: Statz Company had sales of $1,800,000 and related cost of goods sold of $1,150,000 for its first…
A: Journal: Recording of a business transactions in a chronological order.
Q: On 10 July 2021, Pop Music sold CDs to retailers on account and recorded sales revenue of $700,000…
A: These are the accounting transactions that are having a monetary impact on the financial statement…
Q: A home gods retailer offers a sales incentive program where customers receive credit towards future…
A: Credit represents the liabilities of the company. If the credit is redeemed, it would decrease the…
Q: Kindness Company regularly buys sweaters and is allowed a trade discount of 20% and 10%. The entity…
A: Cost: It is the economic value of resources incurred by a firm to manufacture a product or render a…
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: The Cold Foods Corp. launched a sales promotion of its new product, Cold Candy. For every six (6)…
A: Journal is known as the first book of entry or the original book of entry Given in the question:…
Q: Zodiac retail dealer in shirts is currently selling 24,000 shirts annually. He supplies the…
A: Break even point in units: = Fixed cost / Contribution per unit Margin of safety: = Actual sales -…
Q: Equate Inc. sells products with a cost of $25,000 during the year to customer for $55,000. It is…
A: It is pertinent to note that variable consideration need to be included in the transaction price.…
Q: On April 2, 2021, Cullumber Company entered into a contract to supply medication to Laxall Drug…
A:
Q: Manual Company sells goods to Nolan Company during 2017. It offers Nolan the following rebates based…
A: Workings: Given values: for 10000 units rebate = 2 %
Q: Botanic Choice sells natural supplements to customers with an unconditional sales return if they are…
A: Calculation of expected sales return: Calculation of cost of goods returned:
Q: Bahati Masimba Ltd are retailers who sell tiles. During the month of July to September 2019, there…
A: Here the solution needed for Weighted average method, First in first out method(FIFO) and Last in…
Q: asota grants the right to return CDs that do not sell in 3 months following delivery. Past…
A: Journal entry Journal entry is a set of economic events which can be measured in financial terms.…
Q: On July 1, 2020, Bridgeport shipped books invoiced at $15,100,000 (cost $12,080,000). Prepare the…
A: Cost of goods sold as a percentage to invoice value: $12,080,000 / $15,100,000 = 0.80 or 80% Cost of…
Q: A large retailer obtains merchandise under the credit terms of 3/20, net 35, but routinely takes 65…
A: Trade credit: It is a way to conduct business where there is no involvement of cash but sale or…
Q: How much revenue should the vendor recognize immediately at the time of your original purchase
A: Purchase price = $3,000 Voucher value = $ 500 Probability of redemption (estimate) is 90%
Q: A large retailer obtains merchandise under the credit terms of 2/15, net 35, but routinely takes 60…
A: answer wit calculation are as follows
Q: Botanic Choice sells natural supplements to customers with an unconditional sales retum if they are…
A: Journal entries are the building blocks of accounting, which is the act of recording the economic or…
Q: On July 10, 2020, Pharoah Music sold CDs to retailers on account and recorded sales revenue of…
A:
Q: Cullumber Publishing Co. publishes college textbooks that are sold to bookstores on the following…
A: Introduction: A journal entry is used to register a commercial transaction in a corporation's…
Q: Carla Vista Choice sells natural supplements to customers with an unconditional sales return if they…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Bahati Masimba Ltd are retailers who sell tiles. During the month of July to September 2019, there…
A: Ending Inventory=Beginning…
Q: Computers and More offers discounts to its customers and allows the customer to return the product…
A: Net Sale=Sale-Sale return=$850,000-$15,000=$835,000
Q: A large retailer obtains merchandise under the credit terms of 2/15, net 30, but routinely takes 50…
A: Given: credit terms of 2/15, net 30 Days take to pay bills = 50 days Number of days in a years = 365…
Q: onnie Is a purchasing assistant for Sabre Manufacturing. She has received quotes from two different…
A: Solution Given Supplier N Amount of $68,808.55 with payment due In 90 days…
Q: Rangling Company, buys goods from A.J. Stop Company that gives sales terms of 2.5/10, net 30 days.…
A: Please see the next step for the solution
Q: Fego Manufacturers granted credit terms of 60 days to Banda Stores but the manufacturer is prepared…
A: Trade credit is defined as the amount the businesses owe to their suppliers on the inventory, final…
Q: Hult Games buys electronic components for manufacturing from two suppliers, Milan Components and…
A: Late delivery costs are costs related with the delivery of products, which is delivered late with…
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: Francona inc sold bobblehead dolls with a cost of $267,000 to retailers on account and recorded…
A: Sales returns are return of goods from the customers to whom business has made sales.
Q: Blossom Choice sells natural supplements to customers with an unconditional sales return if they are…
A: Cost of goods sold percentage = $1,350/$2,700 Cost of goods sold percentage = 50%
Q: A large retailer obtains merchandise under the credit terms of 2/15, net 45, but routinely takes 60…
A: The term 2/15, net 45 means customer would get the discount if he paid within 15 days of purchase.…
Q: On July 10, 2020, Buffalo Music sold CDs to retailers on account and recorded sales revenue of…
A: The journal entries record the daily transactions of the business on regular basis.
Q: Tri-State Bank and Trust is considering giving Swifty Company a loan. Before doing so, management…
A: Introduction: Inventory is a type of asset that is used to be sold in the business. Inventory may…
Q: On July 10, 2020, Flounder Music sold CDs to retailers on account and recorded sales revenue of…
A: Cost of goods sold rate = Cost of goods soldSales revenue x 100…
Q: LYD Corp. receives an order from a new customer, amounting $55,000. LYD Corp. uses 45-day credit…
A: In order to make decision on feasibility of a customer order, we are required to calculate the net…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Botanic Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales returns extend 60 days. On February 10, 2018, a customer purchases $4,000 of products (cost $2,000). Assuming that based on prior experience, estimated returns are 20%. The journal entry to record the expected sales return and cost of goods sold includes a: a. debit to cash and a credit to sales revenue of $4,000 b. debit to sales revenue and allowances of $800 and a credit to cost of goods sold of $400 c. debit to cost of goods sold and credit to inventory of $2,000 d. credit to estimated inventory returns of $400Carla Vista Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales returns extends 60 days. On February 10, 2021, a customer purchases on account $3500 of products (cost $1750). Assuming that based on prior experience, estimated returns are 20%. The journal entry to record the expected sales return includes a debit to Cash and a credit to Sales Revenue of $3500. debit to Sales Returns and Allowance of $700 and a credit to Allowance for Sales Returns and Allowances of $700. credit to Estimated Inventory Returns of $350. debit to Cost of Goods Sold and credit to Inventory for $1750.Botanic Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales returns extends 60 days. On February 10, 2018, a customer purchases $4,000 of products (cost $2,000). Assuming that based on prior experience, estimated returns are 20%. The journal entry to record the expected sales return and cost of goods sold includes A. a debit to Allowance for Sales Returns of $800 and a credit to Cost of Goods sold of $400. B. debit to Cash and a credit to Sales Revenue of $4,000 C.credit to Estimated Inventory Returns of S400 D.debt to Cost of Goods Sold and credit to Inventory for $2,000
- Blossom Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales returns period extends 60 days. On February 10, 2021, a customer purchases $2700 of products (cost $1350). Assuming that based on prior experience, estimated returns are 10%. The journal entry to record the actual return of $120 of merchandise includes a debit to Returned Inventory for $60. debit to Estimated Inventory Returns for $60. credit to Allowance for Sales Returns for $120. credit to Returned Inventory for $60.Prepare journal entry to record the expected sales return and cost of goods sold? Pinpong curtains sells with an unconditional sales return if its customers are not satisfied. The sales returns extends 60 days. On February 10, 2021, a customer purchases 4,000 of products (cost 2,000). Assuming that based on prior experience, estimated returns are 20%.Boost inc sells vitamin supplements to customers with an unconditional sales return if they are not satisfied. The sales return extends 90 days. On May 12, 2023, High Country Integrated health purchases $4,000 of products with a cost of $2,000. Based on the company's prior experience, estimated returns are 20%. The journal entry to record the expected sales return and cost of goods sold includes a
- Sandhill Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales returns period extends 60 days. On February 10, 2021, a customer purchases $3600 of products (cost $1800). Assuming that based on prior experience, estimated returns are 10%. The journal entry to record the actual return of $210 of merchandise includes a a. credit to Allowance for Sales Returns for $210. B. debit to Returned Inventory for $105. C. debit to Estimated Inventory Returns for $105. D. credit to Returned Inventory for $105.On february 5, 2018, nicanor merchandising has purchased goods on account amounting to 500,000 with credit terms of 3/15, n/60 from its major trade supplier. nicanor operates 360 days a year. Required: 1. compute the nominal cost of trade credit 2. compute the effective cost of trade credit 3. assuming nicanor did not pay the account within the discount period, how much is the penalty in using the money for the next 45 days? 4. in case the prevailing interest rate on bank loan is 20% per annum at simple interest, should nicanor pay within the discount period or not? Breifly discuss your answer and present supporting computation. 5. determine the net monetary benefit that nicanor will enjoy in selecting the optimal alternative. please answer 3-5 thank youFrancona inc sold bobblehead dolls with a cost of $267,000 to retailers on account and recorded sales revenue of $445,000 on February 29, 2020. Francona Inc. allows retailers to return bobbleheads that do not sell in 8 months after sale. Past experience shows that the normal return rate is 20%. By Sept. 1, 2020 retailers returned bobbleheads to Francona and were granted credit of $66,000. On June 18, Plesac Corp. sent $55,000 of merchandise on consignment to Clevinger Co; Plesac paid cash for the $3,000 shipping freight costs. Clevinger paid $1,200 for local advertising, which is reimbursable from Plesac. By Dec. 31, 75% of the merchandise had been sold for $80,000. Clevinger notified Plesac, retained commission of 10%, and remitted the cash due to Plesac on Dec. 31. Prepare Plesac's necessary journal entries for June 18 and Dec. 31. Prepare Francona's necessary journal entries for February 29, Sept. 1, and Sept. 30, assuming Francona prepares financial statements on Sept. 30…
- Computers and More offers discounts to its customers and allows the customer to return the product if not satisfied. Computers and More had sales of $850,000 and offers the customer a payment term of 3/12 n/30. The company received $15,000 in returned goods. The cost of goods sold for the period after returns was $320,000. Calculate net profit and gross profit.Francona inc sold bobblehead dolls with a cost of $267,000 to retailers on account and recorded sales revenue of $445,000 on February 29, 2020. Francona Inc. allows retailers to return bobbleheads that do not sell in 8 months after sale. Past experience shows that the normal return rate is 20%. By Sept. 1, 2020 retailers returned bobbleheads to Francona and were granted credit of $66,000. Prepare Francona's necessary journal entries for February 29, Sept. 1, and Sept. 30, assuming Francona prepares financial statements on Sept. 30 of each year.Chico Company allows its customers to return merchandise within 30 days of purchase. *At December 31, the end of its first year of operations, Chico estimates future-period merchandise returns of $60000 (cost of $22500) related to it's current year sales. *A few days later, on January 3, a customer returns merchandise with a selling price of $2000 for a cash refund; the returned merchandise cost $750 and is returned to inventory as it is not defective. a.Prepare the December 31 year -end adjusting journal entry for estimated future sales returns and allowances (revenue side). b.Prepare the December 31 year-end adjusting journal entry for estimated future inventory returns and allowances (cost side). c.Prepare the January 3 journal entries to record the merchandise returned.