E6-1 (Static) Reporting Net Sales with Credit Sales and Sales Discounts LO6-1 During the months of January and February, Hancock Corporation sold goods to three customers. The sequence of events was as follows: January 6 January 6 January 14 February 2 Sold goods for $1,500 to S. Green and billed that amount subject to terms 2/10, n/30. Sold goods to M. Munoz for $850 and billed that amount subject to terms 2/10, n/30. Collected cash due from S. Green. Collected cash due from M. Munoz. February 28 Sold goods for $400 to R. Reynolds and billed that amount subject to terms 2/10, n/45. Required: Assuming that Sales Discounts is treated as a contra-revenue, compute net sales for the two months ended February 28. Net sales

E6-1 (Static) Reporting Net Sales with Credit Sales and Sales Discounts LO6-1 During the months of January and February, Hancock Corporation sold goods to three customers. The sequence of events was as follows: January 6 January 6 January 14 February 2 Sold goods for $1,500 to S. Green and billed that amount subject to terms 2/10, n/30. Sold goods to M. Munoz for $850 and billed that amount subject to terms 2/10, n/30. Collected cash due from S. Green. Collected cash due from M. Munoz. February 28 Sold goods for $400 to R. Reynolds and billed that amount subject to terms 2/10, n/45. Required: Assuming that Sales Discounts is treated as a contra-revenue, compute net sales for the two months ended February 28. Net sales

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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E6-3 (Algo) Reporting Net Sales with Credit Sales, Sales Discounts, Sales Returns, and Credit Card Sales LO6-1 Bennett Retailers had the following transactions in November and December: November 20 November 25 November 28 November 29 December 6 December 20 Required: Sold 20 items of merchandise to Customer B at an invoice price of $6,000 (total); terms 3/10, n/30. Sold two items of merchandise to Customer C, who charged the $600 (total) sales price on her Visa credit card. Visa charges Bennett Retailers a 1 percent credit card fee. Sold 10 identical items of merchandise to Customer D at an invoice price of $9,400 (total); terms 3/10, n/30. Customer D returned one of the items purchased on the 28th; the item was defective and credit was given to the customer. Customer D paid the account balance in full. Customer B paid the November 20 invoice in full. Compute net sales for the two months ended December 31. Note: Do not round your intermediate calculations. Round your answer to the…
E6-3 (Algo) Reporting Net Sales with Credit Sales, Sales Discounts, Sales Returns, and Credit Card Sales LO6-1 Bennett Retailers had the following transactions in November and December: November 20 Sold 20 items of merchandise to Customer B at an invoice price of $5,500 (total); terms 4/10, n/30. November 25 Sold two items of merchandise to Customer C, who charged the $600 (total) sales price on her Visa credit card. Visa charges Bennett Retailers a 2 percent credit card fee. Sold 10 identical items of merchandise to Customer D at an invoice price of $9,400 (total); terms 4/10, n/30. Customer D returned one of the items purchased on the 28th; the item was defective and credit was given to the customer. December 6 Customer D paid the account balance in full. December 20 Customer B paid the November 20 invoice in full. November 28 November 29 Required: Compute net sales for the two months ended December 31. Note: Do not round your intermediate calculations. Round your answer to the…
E6-3 (Algo) Reporting Net Sales with Credit Sales, Sales Discounts, Sales Returns, and Credit Card Sales LO6-1 The following transactions were selected from among those completed by Bennett Retallers in November and December. Sold 20 items of merchandise to Customer 8 at an invoice price of $6,000 (total); terms 3/10, n/30. Sold two items of merchandise to Customer C, who charged the $500 (total) sales price on her Visa credit card. Visa charges Bennett Retailers a 2 percent credit card fee. Sold 10 identical items of merchandise to Customer D at an invoice price of $9,200 (total); terms 3/10, n/30. Customer D returned one of the items purchased on the 28th; the item was defective and credit was given to the customer. November 20 November 25 November 28 November 29 December 6 December 20 Customer D aid the account balance in full. Customer B paid in full for the invoice of November 20. Required: Assume that Sales Returns and Allowances, Sales Discounts, and Credit Card Discounts are…
E6-3 (Algo) Reporting Net Sales with Credit Sales, Sales Discounts, Sales Returns, and Credit Card Sales LO6-1 The following transactions were selected from among those completed by Bennett Retailers in November and December: Sold 20 items of merchandise to Customer B at an invoice price of $6,300 (total); terms 4/10, n/30. Sold two items of merchandise to Customer C, who charged the $700 (total) sales price on her Visa credit card. Visa charges Bennett Retailers a 2 percent credit card fee. Sold 10 identical items of merchandise to Customer D at an invoice price of $9,300 (total); terms 4/10, n/30. Customer D returned one of the items purchased on the 28th; the item was defective and credit was given to the customer. November 20 November 25 November 28 November 29 December 6 Customer D paid the account balance in full. December 20 Customer B paid in full for the invoice of November 20. Required: Assume that Sales Returns and Allowances, Sales Discounts, and Credit Card Discounts are…
E6-2 Reporting Net Sales with Credit Sales, Sales Discounts, and Credit Card Sales LO6-1 The following transactions were selected from the records of Ocean View Company: July 12 Sold merchandise to Customer R, who charged the $3,000 purchase on his Visa credit card. Visa charges OceanView a 2 percent credit card fee. 15 Sold merchandise to Customer S at an invoice price of $9,000; terms 3/10, n/30. 20 Sold merchandise to Customer T at an invoice price of $4,000; terms 3/10, n/30. 23 Collected payment from Customer S from July 15 sale. Aug. 25 Collected payment from Customer T from July 20 sale. Required: Assuming that Sales Discounts and Credit Card Discounts are treated as contra-revenues, compute net sales for the two months ended August 31.
LO 6-4 In bre cen E6-10 Reporting Net Sales after Sales Discounts January and February, Solitare Corporation sold goods to two customers. During the months The sequence of events was as follows: Jan. 6 Mon 22020 6 14 Feb. 28 Sold goods for $100 to Wizard Inc. with terms 2/30, n/60. The goods cost Solitare $70. Sold goods to Spyder Corp. for $80 with terms 5/10, n/60. The goods cost Solitare $60. Collected cash for the amount due from Wizard Inc. Collected cash for the amount due from Spyder Corp. Required: Deariou Compute the Net Sales Solitare would report over the two months. E6-23 (Supplement 6A) Recording Journal Entries for Net Sales with Credit Sales and Sales Discounts (Gross Method) pirmA polal avab sodi teul Using the information in E6-10, prepare journal entries to record the transactions, assuming Solitare records discounts using the gross method in a perpetual inventory system. LO 6-S1
31. Abbey Co. sold merchandise to Gomez Co. on account, $35,000, terms 2/15, net 45. The cost of the merchandise sold was $24,500. Abbey Co. issued a credit memo for $3,600 for merchandise returned that originally cost $1,700. Gomez Co. paid the invoice within the discount period. What is the amount of gross profit earned by Abbey Co. on the above transactions? a.$31,400 b.$30,772 c.$10,500 d.$7,972
Sales-related transactionsSayers Co. sold merchandise on account to a customer for $80,000 terms2/10, n/30. The cost of the goods sold was $58,000. Journalize Sayers' entries to record (A) the sale, (B) the receipt of payment within thediscount period, and (C) the receipt of payment beyond the discountperiod of ten days.
M6-2 (Algo) Reporting Net Sales with Sales Discounts, Credit Card Discounts, and Sales Returns LO6-1 Total gross sales for the period include the following: Credit card sales (discount 3%) Sales on account (3/15, n/60) $ 10,300 $ 11,000 Sales returns related to sales on account were $200. All returns were made before payment. One- half of the remaining sales on account were paid within the discount period. The company treats all discounts and returns as contra-revenues. What amount will be reported on the income statement as net sales? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Net sales
On October 4, 2o08, Terry Corporation had credit sales transactions of P2,800 from merchandise having cost P1,900. The entries to record the day's credit transactions include a * debit of P2,800 to Merchandise Inventory. O credit of P2,800 to Sales. O debit of P1,900 to Merchandise Inventory. O credit of P1,900 to Cost of Goods Sold.
XYZ Company was established in Decemberof the current year. Its sales of merchandise on account, related returnsand allowances during the remainder of the month are described below. Dec.15 Sold merchandise on account to A Co., Rs 8500. 19 Sold merchandise on account to B Co., Rs 8000. 20 Sold merchandise on account to C Co., Rs 12,000. 22 Issued Credit memo for Rs 400 to B Co. for merchandise return. 24 Sold merchandise on account to B Co., Rs 16,500. 25 Sold additional merchandise on account to B. Co, Rs 9000. 26 Issued Credit memo for Rs 250 to A Co. for merchandise return. 27 Sold additional merchandise on account to C Co., Rs 16,000. Record the transactions for December in the sales journal and/ generaljournal
E6-3 (Algo) Reporting Net Sales with Credit Sales, Sales Discounts, Sales Returns, and Credit Card Sales LO6-1 Bennett Retailers had the following transactions in November and December: November 20 November 25 November 28 November 29 Customer D returned one of the items purchased on the 28th; the item was defective and credit was given to the customer. December 6 Customer D paid the account balance in full. December 20 Customer B paid the November 20 invoice in full. Sold 20 items of merchandise to Customer B at an invoice price of $5,500 (total); terms 3/10, n/30. Sold two items of merchandise to Customer C, who charged the $600 (total) sales price on her Visa credit card. Visa charges Bennett Retailers a 3 percent credit card fee. Sold 10 identical items of merchandise to Customer D at an invoice price of $9,800 (total); terms 3/10, n/30. Required: Compute net sales for the two months ended December 31. Note: Do not round your intermediate calculations. Round your answer to the…