Required1. Assume that Urban One sells a $300 gift certificate to a customer, collecting the $300 cash in advance.Prepare the journal entry for (a) collection of the cash for delivery of the gift certificate to the customer and(b) revenue from the subsequent delivery of merchandise when the gift certificate is used.2. How can keeping less inventory help to improve Urban One's profit margin?3. Cathy Hughes understands that many companies carry considerable inventory, and she is thinking ofcarrying additional inventory of merchandise for sale. Cathy desires your advice on the pros and cons ofcarrying such inventory. Provide at least one reason for, and one reason against, carrying additionalinventory.

1. Record journal entry for collection of cash for gift certificate and use of gift certificate as…

Answered: Required 1. Assume that Urban One sells…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

1- What is the difference between online sales and cash sales? 2- If you are a business owner, what do you briefer cash sales or online sales?
Vinubhai
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Every March, Buddie, who owns and operates a small retail shop, takes a large box of receipts and invoices to her accountant so the accountant can file Buddie's taxes in April. Only then does Buddie know if her business has been profitable. Buddie could benefit from a(n) ________.Select one:a. concurrent control systemb. management information system c. balanced scorecard systemd. inventory control system
Recording inventory with discounts available. Greystoke, Inc. is owned by twin brothers. On most issues, they agree completely with eac other. One particular problem, though, is giving them trouble. Galen wants to use the grom method for recording purchases of merchandise with discounts while Gordon thinks the on logical method is the net method. To help them resolve their problems, they need to see th information each method gives them and get some feedback on what they can learn from eac method. You have the honor of being chosen. Provide journal entries to record each activity fe both the gross and net methods. Be sure to label the methods. The entries can be side by side fe the two inventory methods. Assume the brothers use the periodic inventory system. May 2 Gross Purchased and received $15.000 of merchandise, terms 1/15, n/45. lurchase 15,000 cush 14,850 Net 15,000 Purchas 14,85d Acct Pay Purchas dis 150 us5 May 5 Gross Returned merchandise with a cost of $500 because we could…
Why should the person in charge of cash receipts not also be in charge of keeping the aAssume you're the assistant controller at a bookstore that's run by an independent bookseller. Manual, periodic inventory updating, physical counts at year end, and the FIFO technique for inventory costs are all used by the firm. How would you tackle the question of whether or not the organization should move to computerized perpetual inventory updating? Can you make a compelling case for the advantages of perpetual? Explain.ccounts receivable records? Explain
A higher average collection period indicates that the business is: 1.The collection department is efficient. 2.Taking more time to collect money from its receivables . 3.Able to sell inventory more quickly to customers . 4.Taking more time to pay money to its payables
[The following information applies to the questions displayed below.] Hughes Hair Design is a wholesaler of hair supplies. Hughes Hair Design uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $32,397). $ 57,600 b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $320). 350 c. Sold merchandise (costing $7,600) to a customer on account with terms n/60. 16,000 d. Collected half of the balance owed by the customer in (c). 8,000 e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. 180 f. Anticipate further returns of merchandise (costing $240) after year-end from sales made during the year. 360 Prepare journal entries to record transactions (a)–(f). (If no entry is required for a transaction/event, select "No Journal Entry Required"…
The company has maintained a strong with a lot of money coming from sales of products that allows the company to buy new items A-balance sheet B-merchandise C-cash flow D-purchasing power
Activity 1. True or False. Write "TRUE" if the statement is correct and "FALSE" if the statement is incorrect. 1. The cost of sales method presents expenses in the income statement according to its nature. 2. The main source of revenue in a merchandising business is sales. 3. Selling expenses are expenses necessary in the management of the office. 4. Merchandise inventory beginning plus net cost of purchases is cost of goods sold. 5. Sales less cost of goods sold is gross profit. 6. The multi-step income statement is used only in a service concern business. 7. The income statement shows the result of operating as well as the financial standing of a company as to a given date. 8. Other expenses are expenses directly related to the sale of merchandise. 9. Goods available for sale less merchandise inventory beginning is cost of goods sold. 10.In preparing the income statement 1/3 of a company, management may choose between the single-step income statement or multiple-step income statement…
Please help me to solve this problem
ASAP PLEASE!!!! drag and drop type of question that is all my screen has sorry

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS