Financial Accounting
15th Edition
ISBN: 9781337272124
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 6, Problem 4CP
To determine
Prepare a MEMO to Mr. S of Company W.
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Headland sells its specialty combination gas/wood-fired grills to local restaurants. Each grill is sold for $1,010 (cost
$536) on credit with terms 2/30, net/90. Prepare the journal entries for the sale of 20 grills on September 1, 2020,
and upon payment, assuming the customer paid on (1) September 25, 2020, and (2) October 15, 2020. Assume the
company records sales net. (Credit account titles are automatically indented when the amount is
entered. Do not indent manually. If no entry is required, select "No entry" for the account titles
and enter 0 for the amounts.)
Account Titles and Explanation
Accounts Receivable
Sales Revenue
To record sales)
Cost of Goods Sold
Inventory
To record cost of goods sold)
Cash
Accounts Receivable
Accounts Receivable
Sales Revenue
To record sales)
Cost of Goods Sold
Inventory.
To record cost of goods sold)
Cash
Accounts Receivable
Sales Discounts Forfeited
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Sage sells its specialty combination gas/wood-fired grills to local restaurants. Each grill is sold for $1,010 (cost $601) on credit
with terms 2/30, net/90. Prepare the journal entries for the sale of 20 grills on September 1, 2020, and upon payment, assuming
the customer paid on (1) September 25, 2020, and (2) October 15, 2020. Assume the company records sales net. (Credit account
titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the
account titles and enter O for the amounts.)
No.
Date
Account Titles and Explanation
Debit
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(To record sales)
(To record cost of goods sold)
Jo Angel Company sells its products in reusable, expensive containers. The customer is charged a deposit for each container delivered and receives a refund for each container returned within two years after the year of delivery. Jo Angel accounts for the container not returned within the time limit as being retired by sale at the deposit amount. Information for 2020 is as follows:
Containers held by customers at December 31, 2019, from deliveries in:
2018 5,000,000
2019 6,000,000
Containers delivered in 2020 9,000,000
Containers returned in 2020 from deliveries in:
2018 4,000,000
2019 4,500,000
2020 3,500,000
What amount should Jo Angel report as a liability for returnable containers at December 31, 2020?
Group of answer choices
7,000,000
8,000,000
0
5,500,000
Chapter 6 Solutions
Financial Accounting
Ch. 6 - Prob. 1DQCh. 6 - Can a business earn a gross profit but incur a net...Ch. 6 - The credit period during which the buyer of...Ch. 6 - What is the meaning of (a) 1/15, n/60; (b) n/30;...Ch. 6 - Prob. 5DQCh. 6 - Prob. 6DQCh. 6 - Prob. 7DQCh. 6 - Name four accounts that would normally appear in...Ch. 6 - Prob. 9DQCh. 6 - Assume that Audio Outfitter Inc. in Discussion...
Ch. 6 - Prob. 1PEACh. 6 - Prob. 1PEBCh. 6 - Halibut Company purchased merchandise on account...Ch. 6 - Hoffman Company purchased merchandise on account...Ch. 6 - Journalize the following merchandise transactions:...Ch. 6 - Journalize the following merchandise transactions:...Ch. 6 - Prob. 4PEACh. 6 - Journalize the following merchandise transactions:...Ch. 6 - Prob. 5PEACh. 6 - Prob. 5PEBCh. 6 - Prob. 6PEACh. 6 - Journalize the following merchandise transactions:...Ch. 6 - Assume the following data for Lusk Inc. before its...Ch. 6 - PE 6-7B Customer allowances and returns
Assume the...Ch. 6 - Financial statement data for years ending December...Ch. 6 - Financial statement data for years ending December...Ch. 6 - During the current year, merchandise is sold for...Ch. 6 - For a recent year, Best Buy reported sales of...Ch. 6 - Monet Paints Co. is a newly organized business...Ch. 6 - Prob. 4ECh. 6 - A retailer is considering the purchase of 500...Ch. 6 - The debits and credits for four related entries...Ch. 6 - Prob. 7ECh. 6 - Prob. 8ECh. 6 - Journalize the entries for the following...Ch. 6 - After the amount due on a sale of 28,000, terms...Ch. 6 - The debits and credits for four related entries...Ch. 6 - Prob. 12ECh. 6 - Prob. 13ECh. 6 - Showcase Co., a furniture wholesaler, sells...Ch. 6 - Prob. 15ECh. 6 - Prob. 16ECh. 6 - Journalize the entries to record the following...Ch. 6 - What is the normal balance of the following...Ch. 6 - Paragon Tire Co.s perpetual inventory records...Ch. 6 - Assume the following data for Oshkosh Company...Ch. 6 - Zell Company had sales of 1,800,000 and related...Ch. 6 - For the fiscal year, sales were 191,350,000 and...Ch. 6 - The following expenses were incurred by a...Ch. 6 - One item is omitted in each of the following four...Ch. 6 - On March 31, 2019, the balances of the accounts...Ch. 6 - Identify the errors in the following income...Ch. 6 - Summary operating data for Custom Wire Tubing...Ch. 6 - From the following list, identify the accounts...Ch. 6 - Based on the data presented in Exercise 6-25,...Ch. 6 - On July 31, 2019, the balances of the accounts...Ch. 6 - The Home Depot reported the following data (in...Ch. 6 - Kroger Co., a national supermarket chain, reported...Ch. 6 - Complete the following table by indicating for (a)...Ch. 6 - The following selected transactions were completed...Ch. 6 - Prob. 35ECh. 6 - The following data were extracted from the...Ch. 6 - Prob. 37ECh. 6 - Based on the following data, determine the cost of...Ch. 6 - Identify the errors in the following schedule of...Ch. 6 - United Rug Company is a small rug retailer owned...Ch. 6 - The following selected transactions were completed...Ch. 6 - The following selected transactions were completed...Ch. 6 - Prob. 3PACh. 6 - The following selected transactions were completed...Ch. 6 - The following selected accounts and their current...Ch. 6 - Selected accounts and related amounts for...Ch. 6 - Selected transactions for Capers Company during...Ch. 6 - Selected transactions for Babcock Company during...Ch. 6 - On December 31, 2019, the balances of the accounts...Ch. 6 - The following selected transactions were completed...Ch. 6 - The following selected transactions were completed...Ch. 6 - The following were selected from among the...Ch. 6 - The following selected transactions were completed...Ch. 6 - The following selected accounts and their current...Ch. 6 - Selected accounts and related amounts for Kanpur...Ch. 6 - Selected transactions for Niles Co. during March...Ch. 6 - Selected transactions for Essex Company during...Ch. 6 - On June 30, 2019, the balances of the accounts...Ch. 6 - Palisade Creek Co. is a merchandising business...Ch. 6 - Prob. 1CPCh. 6 - Prob. 2CPCh. 6 - Prob. 4CPCh. 6 - Prob. 5CPCh. 6 - Prob. 6CP
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