1. What are the amount of the cash discount and the net amount due if the discount is Caken? Revised Total Discount Cash discount $54,451.40 $54,451.40 Merchandise total Cash discount $1,150.00 Insurance and shipping Net amount due If Sound Design sends in a partial payment of $20,000 within the discount period, what is the net balance still due? Partial payment credit = Merchandise total Partial payment credit $1,150.00 Insurance and shipping Net balance

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
As part of the employment interview for an accounting job at Sound Design, you have
been asked to answer the questions below, based on an invoice from one of Sound
Design's vendors, Target Electronic Wholesalers.
a. Extend each line and calculate the merchandise total and the total amount of the
invoice, using the space provided on the invoice.
Sold to:
Quantity:
50
25
40
20
StereoMaster Stores
480 McDowell Rd.
Phoenix, AZ 85008
Stock:
4811V
511CX
6146M
1031A
ROG Date No. of Discount Days
15-Mar
28
ELECTRONIC WHOLESALERS
1979 N.E. 123 Street
Jacksonville, Florida 32204
Blue-ray players
LCD TVs
Returned Merchandise
TARGET
b. What are the discount date and the net date if the shipment arrived on July 16?
Discount Date
28-Jul
Revised Merchandise Total 57476.8
Quantity Cost Ea
5
4
Partial payment credit =
Description:
AM-FM Stereo Receivers
Revised Total Discount Cash discount
$54,451.40
Invoice Date:
Blue-ray Players
Home Theaters
LCD TVs
Terms of Sale:
c. While in transit, five Blu-ray players and four LCD TVs were damaged and will be
returned. What is the amount of the returned merchandise? What is the revised merchandise total?
$132.28
$591.00
Total
$661.40
$2,364.00
$3,025.40
$54,451.40
d. What are the amount of the cash discount and the net amount due if the discount is
taken?
3025.4
June 28, 200x
3/15,n/30 ROG
Merchandise Total
Insurance & Freight charges
Invoice Total
Unit Price:
$297.50
e. If Sound Design sends in a partial payment of $20,000 within the discount period,
what is the net balance still due?
$54,451.40 Merchandise total
Cash discount
$1,150.00 Insurance and shipping
Net amount due
132.28
658.12
591.00
ROG Date No. of Net Days
n/30
48
Merchandise total
Partial payment credit
$1,150.00 Insurance and shipping
Net balance
Amount:
$14,875.00
$3,307.00
$26,324.80
$11,820.00
$56,326.80
$1,150.00
$57,476.80
Net Date
17-Aug
Transcribed Image Text:As part of the employment interview for an accounting job at Sound Design, you have been asked to answer the questions below, based on an invoice from one of Sound Design's vendors, Target Electronic Wholesalers. a. Extend each line and calculate the merchandise total and the total amount of the invoice, using the space provided on the invoice. Sold to: Quantity: 50 25 40 20 StereoMaster Stores 480 McDowell Rd. Phoenix, AZ 85008 Stock: 4811V 511CX 6146M 1031A ROG Date No. of Discount Days 15-Mar 28 ELECTRONIC WHOLESALERS 1979 N.E. 123 Street Jacksonville, Florida 32204 Blue-ray players LCD TVs Returned Merchandise TARGET b. What are the discount date and the net date if the shipment arrived on July 16? Discount Date 28-Jul Revised Merchandise Total 57476.8 Quantity Cost Ea 5 4 Partial payment credit = Description: AM-FM Stereo Receivers Revised Total Discount Cash discount $54,451.40 Invoice Date: Blue-ray Players Home Theaters LCD TVs Terms of Sale: c. While in transit, five Blu-ray players and four LCD TVs were damaged and will be returned. What is the amount of the returned merchandise? What is the revised merchandise total? $132.28 $591.00 Total $661.40 $2,364.00 $3,025.40 $54,451.40 d. What are the amount of the cash discount and the net amount due if the discount is taken? 3025.4 June 28, 200x 3/15,n/30 ROG Merchandise Total Insurance & Freight charges Invoice Total Unit Price: $297.50 e. If Sound Design sends in a partial payment of $20,000 within the discount period, what is the net balance still due? $54,451.40 Merchandise total Cash discount $1,150.00 Insurance and shipping Net amount due 132.28 658.12 591.00 ROG Date No. of Net Days n/30 48 Merchandise total Partial payment credit $1,150.00 Insurance and shipping Net balance Amount: $14,875.00 $3,307.00 $26,324.80 $11,820.00 $56,326.80 $1,150.00 $57,476.80 Net Date 17-Aug
Expert Solution
steps

Step by step

Solved in 7 steps with 9 images

Blurred answer
Knowledge Booster
Trade Credit
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education