EXERCISE 14Buchanan Company sells gift certificates redeemable only when merchandise is purchased. The certificates havean expiration date of two years after issuance. Upon redemption or expiration, Buchanan recognizes theunearned revenue as realized. Data for the year are as follows:Unearned revenue, January 1- P 750,000Gift certificates sold – P 3,000,000Gift certificates redeemed - P 2,750,000Expired gift certificates – P 150,000Cost of goods sold rate is 75%.REQUIRED:Prepare all journal entries to the foregoing.

Gift certificates are some certificates or cards, in which revenue is recognised only when…

Answered: EXERCISE I4 Buchanan Company sells gift…

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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Invoice amount of $28,700 on June 25 Partial Payment made on July 20th of 6,000 Return goods of $650 Terms are 4/20, 3/30, n/60 What is the net amount due if the company send a partial payment of $6000 on the 20th What is the net date? If the manufacturer charges a 4 1/2% late fee , What would the company owe if it did not pay the balance by the net date? Round to the nearest cent.
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Tess3false Merchandise is sold for cash. The selling price of the merchandise is $2,000 and the sale is subject to a 7% state sales tax. The journal entry to record the sale would include a credit to Oa. Sales for $1,860 Ob. Cash for $2,000 O c. Sales Tax Payable for $140 Od. Sales for $2,140 Previous Submit Test f Email Instructor All work saved. 64°F ^ E I 99+
2.17) Find the average daily balance (new purchases included) Payment End of Day Balance Dates 12/1-12/9 12/10 12/11-12/17 12/18 12/19-12/31 Average $840.00 Purchase $230.00 X Number of Days $975.00 x $1,205.00 x $1,205.00 x $365.00 X $365.00 x Total → 9 1 7 1 13. 31 Sum of Balances
Activity 2: The transsactions for DEF Company for the month of April, 2021 are shown below. (Assume the company is a vat registered business and assume 12% VAT is inclusive in the amounts in the transactions.) Date Transactions April 2 DEF sold and shipped merchandise worth P250,000 to AM Company terms 1/15, n/30. 4 AM Company reported P5,800 of merchandise damaged in shipment, and a credit memo was issued for this. 6 Purchased office supplies for P3,568 cash. 7 Sold P120,000 of merchandise to Lily Company, terms: 2/10, n/30. Purchased merchandise for P244,000 cash. 8 10 Cash sales for the first 15 days is P188,000. 12 Purchased merchandise worth P300,000, terms: 20% downpayment, balance 2/10, n/30. 14 Returned defective merchandise worth P30,000 purchased on April 12. 16 Received full payment from AM Company for sale of April 2. Received full payment from Lily Company. 17 22 Paid commission of salesmen, P60,000. 22 Paid in full the purchase dated April 12. Cash sales for the last 15…
A " S Activity No. 4 A builder gets a trade discount of 1.25% and (3% -10days) on goods retailing for QR173,400. How much does he pay if paid after 12 days Activity No. 5 At September,5,2019 A builder gets a trade discount of 2.5% and (2/10) on goods retailing for QR550,000. How much does he pay if paid in Sep,15,2019? Activity No. 6 At 1/2/2021 A builder gets a trade discount of 2.25% and (3.5/8) on goods retailing for QR40,400. How much does he pay in 10/2/2021?
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View Policies Current Attempt in Progress Whispering Winds Corporation uses a perpetual inventory system and had inventory worth $88,500 at the beginning of the year. Purchases were made during the year for $393,000; however, 10% of these goods were returned to the supplier, and a 3% discount was taken on the remaining balance owing. Whispering Winds paid $3,500 cash for freight to ship the inventory to its location during the year. Whispering Winds reported cost of goods sold for the year of $295,000. Whispering Winds has a calendar year end. What is the balance in the inventory account at the end of the year? Balance If Whispering Winds counted its actual inventory balance as $118,000 at the end of the year, what adjusting entry, if any, would be made? (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. List all debit entries before credit…
Divine Divas Fashions must charge 8 percent sales tax on all sales. DATE TRANSACTIONS 20X1 April 2 Sold merchandise for cash, $3, 500 plus sales tax. 3 The customer purchasing merchandise for cash on April 2 returned $500 of the merchandise; provided a cash refund to the customer. 4 Sold merchandise on credit to Lisa Dang; issued Sales Slip 908 for $1,025 plus tax, terms n/30. 6 Accepted return of damaged merchandise from Lisa Dang; issued Credit Memorandum 302 for $175 plus tax. The original sale was made on Sales Slip 908 of April 4. 30 Received payment on account from Lisa Dang in payment of her purchase of April 4, less the return on April 6.
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Question 1 Superfan retails one type of premium computer fans which it sells for $72.6 (GST Inclusive) per unit. The following events took place during the month of September 2021: September 8 Superfan purchased 100 fans at $38.5 (GST Inclusive) per unit in cash. September 15 SuperFan purchased 160 fans at $37.4 (GST Inclusive) per unit on credit. September 20 Superfan sold 330 fans to FansAreUs on credit. September 23 FansAreUs returned 30 fans sold on 20 September which were damaged and written off by SuperFan. September 30 Stocktake revealed 28 fans on hand. Additional information: 1. Superfan had 100 fans valued at $3,100 on hand on 1 September 2021. It uses the moving average cost flow assumption and the perpetual inventory method to account for its inventory movement. 2. The opening balance for the allowance for doubtful debts account was $250 credit on 1 September 2021. SuperFan assumes 2% of all monthly net credit sales to be irrecoverable. Required: Record September 2021…
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