FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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On November 15, a merchant purchased merchandise that he settled with 35% in cash, a payment for $35,050, which corresponds to 40% on March 3 and another for the rest on April 22. Considering charges of 16.8% annually, determine: a) The value of the merchandise on the day of purchase
b) The amount paid on April 22
c) Interest or charges for not paying in cash
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- Sydney returns $1,300 of the $29,000 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $871. Note: Enter debits before credits. Date General Journal Debit Credit May 12arrow_forwardFind the outstanding balance due at the end of the credit period. Scotty purchased merchandise with a list price of $235,000 with an invoice date of February 10th. He receives the goods on February 15. He is offered a 20/5/5 trade discount and terms of sale 3/15,1/25, n60. He makes a $60,000 partial payment on February 18 and a second partial payment of $40,000 on March 1arrow_forwardOn January 2, Golden Ltd. sold merchandise on account to R. Mark for $44,000, terms n/30. The company uses a perpetual inventory system and the merchandise originally cost $31,000. On February 1, R. Mark gave Golden a five-month, 9% note in settlement of this account. Interest is due at the beginning of each month, starting March 1. On April 30, Golden's year end, annual adjusting entries were made. On July 1, R. Mark paid the note and any remaining interest. Prepare the journal entries for Golden to record the transactions only on the dates listed above. (List all debit entries before credit entries. 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.) Date Account Titles and Explanation Debit Credit (To record sales) (To record cost of merchandise sold) > > > >arrow_forward
- Hello, I'm unsure how to do en entries for this questionarrow_forwardRecord these transactions in general journal ledger: Dec 1: Purchased equipment costing $15,608 by taking out a 4-month installment note with First Bank. Dec 4: Accepted a sales return from Eastern for an item having an original gross sales price of $6,000. The original sale to Eastern occurred in November with terms 2/15, n/30. Dec 5: Specifically wrote off the receivable balance owed by Baker as uncollectible. Dec 7: Returned defective inventory with a gross cost of $4,000 back to Hunt Corp. Dec 14: Wilson returned an item originally purchased on Dec 12 with a gross sales price of $7,000. Dec 14: Returned inventory with a gross cost of $2,000 back to Nelson Industries. Dec 18: Bought office supplies on account for $9,000 from Staples Inc. (open a new Accounts Payable in the subsidiary ledger--Vendor # 210-30). Invoice # is OM1218. Staples Inc.’s terms are n/30 Dec 19: Received the December utilities bill for the amount of $15,000. The bill will be paid in January of next year.…arrow_forwardPrepare journal entries for the following transactions. Oct. 5 Sold merchandise on account to B. Farnsby for $290 plus sales tax of 4%. 8 Sold merchandise on account to F. Preetee for $180 plus sales tax of 4%, with 2/10, n/30 cash discount terms. 11 F. Preetee returned merchandise purchased on October 8 for $40 plus sales tax for credit. 17 F. Preetee paid the balance due on her account. 18 B. Farnsby returned merchandise purchased on October 5 for $80 plus sales tax for credit. 20 B. Farnsby paid the balance due on his account. Required: Prepare journal entries.arrow_forward
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