the information below, what was the net income from all of the May transactions? May 5: Kesha purchases black cocktail dresses from Party Attire Inc. on account. Kesha purchased 100 dresses for $60 each. Terms are 2/15 n30. Freight terms are FOB shipping point. May 7: Kesha returns 10 dresses from the May 5 purchase because they are the incorrect color. May 9: The freight bill for the May 5 purchase is $500. May 11: Kesha sells 100 jumpsuits purchased in April to Danni's Boutique for $40 each. The cost of the jumpsuits was $25. Terms are 3/10 n45. Shipping terms are FOB destination point. May 11: The freight bill for the May 11 sale to Danni's Boutique is $75. May 12: Danni's Boutique calls and complains that 5 of the jumpsuits purchased were damaged. Rather than send them back, Danni requested a $200 allowance. Kesha granted the allowance. May 12: Kesha purchases for cash 200 Lew E. Vitton Handbags from Knockoffs R Us, Co. for $45 each. Freight terms are FOB destination point. May 13: The freight bill for the May 12 purchase is $350. May 14: Kesha determines that she could have purchased the Lew E. Vitton handbags for 10% less from Backroom Designs LLC. She contacts Knockoffs R Us and negotiates a 10% allowance. May 16: Kesha pays the amount owed for the May 5 purchase.

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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Given the information below, what was the net income from all of the May transactions?

May 5: Kesha purchases black cocktail dresses from Party Attire Inc. on account. Kesha purchased 100 dresses for $60 each. Terms are 2/15 n30. Freight terms are FOB shipping point.
May 7: Kesha returns 10 dresses from the May 5 purchase because they are the incorrect color.
May 9: The freight bill for the May 5 purchase is $500.
May 11: Kesha sells 100 jumpsuits purchased in April to Danni's Boutique for $40 each. The cost of the jumpsuits was $25. Terms are 3/10 n45. Shipping terms are FOB destination point.
May 11: The freight bill for the May 11 sale to Danni's Boutique is $75.
May 12: Danni's Boutique calls and complains that 5 of the jumpsuits purchased were damaged. Rather than send them back, Danni requested a $200 allowance. Kesha granted the allowance.
May 12: Kesha purchases for cash 200 Lew E. Vitton Handbags from Knockoffs R Us, Co. for $45 each. Freight terms are FOB destination point.
May 13: The freight bill for the May 12 purchase is $350.
May 14: Kesha determines that she could have purchased the Lew E. Vitton handbags for 10% less from Backroom Designs LLC. She contacts Knockoffs R Us and negotiates a 10% allowance.
May 16: Kesha pays the amount owed for the May 5 purchase.
May 17: Kesha sells the remaining 90 black cocktail dresses from the May 5 purchase to PromGowns Co. for $125 each. Terms are 1/20 n30. Freight terms are FOB shipping point.
May 18: The freight bill for the May 17 sale is $90.
May 20: PromGowns Co. returns 10 of the black cocktail dresses.
May 24: Kesha receives payment from Danni's Boutique for the May 11 sale.
May 31: Kesha receives payment from PromGowns Co. for the May 17 sale.

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