Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Question
Chapter 3, Problem 12Q
To determine
Determine the account is debited for the $80 payment and $135 payment.
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Students have asked these similar questions
6. Freight designation is F.O.B. Destination. Who is responsible for
paying the shipper?
7. Explain what the terms of sale 2/10, n/30 represents?
8. If the merchandiser pays within 10 days of the invoice date how
much will they actually pay?
Explain your answer.
9. Explain why the merchandiser is not paying sales tax.
10. What information from this invoice would be entered in the
Source Document column of the journal?
11.Let's assume the merchandiser (buyer) pays after the discount
period expires, how will the vendor (seller) journalize the
payment? Add the appropriate amount to the appropriate
accounts provided below.
Use the picture below to answer the following questions.
Merchandise is sold on account to a customer for $13,600, terms FOB shipping point, 2/10, n/30. The seller paid the freight of $510.
a. Determine the amount of the sale.$fill in the blank 1
b. Determine the increase to Accounts Receivable.$fill in the blank 2
c. Determine the amount of the discount for early payment.$fill in the blank 3
d. Determine the amount due within the discount period.$fill in the blank 4
Merchandise is sold on account to a customer for $17,800, terms FOB shipping point, 1/10, n
/30. The seller paid the freight of $530. a. Determine the amount of the sale. $fill in the blank
1 b. Determine the amount debited to Accounts Receivable. $fill in the blank 2 c. Determine
the amount of the discount for early payment. $fill in the blank 3 d. Determine the amount
due within the discount period. $fill in the blank 4
Chapter 3 Solutions
Survey Of Accounting
Ch. 3 - 1. Define merchandise inventory. What types of...Ch. 3 - 2. What is the difference between a product cost...Ch. 3 - 3. How is the cost of goods available for sale...Ch. 3 - 4. What portion of cost of goods available for...Ch. 3 - 5. When are period costs expensed? When are...Ch. 3 - 6. If PetCo had net sales of 600,000, goods...Ch. 3 - Prob. 7QCh. 3 - 8. What are the effects of the following types of...Ch. 3 - 9. Northern Merchandising Company sold inventory...Ch. 3 - 10. If goods are shipped FOB shipping point, which...
Ch. 3 - 11. Define transportation-in. Is it a product or a...Ch. 3 - Prob. 12QCh. 3 - Prob. 13QCh. 3 - 14. Dyer Department Store purchased goods with the...Ch. 3 - 15. Eastern Discount Stores incurred a 5,000 cash...Ch. 3 - 16. What is the purpose of giving credit terms to...Ch. 3 - Prob. 17QCh. 3 - 18. Ball Co. purchased inventory with a list price...Ch. 3 - 22. Explain the difference between purchase...Ch. 3 - Prob. 20QCh. 3 - Prob. 21QCh. 3 - 25. What is the advantage of using common size...Ch. 3 - 27. What is the purpose of preparing a schedule of...Ch. 3 - 28. Explain how the periodic inventory system...Ch. 3 - Prob. 25QCh. 3 - Exercise 3-1 Determining the cost of financing...Ch. 3 - Exercise 3-2 Comparing a merchandising company...Ch. 3 - Exercise 3-3 Effect of inventory transactions on...Ch. 3 - Exercise 3-4 Effect of inventory transactions on...Ch. 3 - Exercise 3-5 Recording inventory transactions in a...Ch. 3 - Exercise 4-6A Understanding the freight terms FOB...Ch. 3 - Exercise 3-7 Effect of purchase returns and...Ch. 3 - Exercise 3-8 Accounting for product costs:...Ch. 3 - Effect of product cost and period cost: Horizontal...Ch. 3 - Cash Discounts and Purchase Returns On April 6,...Ch. 3 - Exercise 4-9A Determining the effect of inventory...Ch. 3 - Inventory financing costs Bill Norman comes to you...Ch. 3 - Effect of shrinkage: Perpetual system Ho Designs...Ch. 3 - Comparing gross margin and gain on sale of land...Ch. 3 - Single-step and multistep income statements The...Ch. 3 - Prob. 16ECh. 3 - Effect of cash discounts on financial statements:...Ch. 3 - Using common size statements and ratios to make...Ch. 3 - Prob. 19ECh. 3 - Determining cost of goods sold: Periodic system...Ch. 3 - Identifying product and period costs Required...Ch. 3 - Problem 4-23A Identifying freight costs Required...Ch. 3 - Effect of purchase returns and allowances and...Ch. 3 - Preparing a schedule of cost of goods sold and...Ch. 3 - Prob. 25PCh. 3 - Comprehensive cycle problem: Perpetual system At...Ch. 3 - Prob. 27PCh. 3 - Comprehensive cycle problem: Periodic system...Ch. 3 - Prob. 1ATCCh. 3 - ATC 3-2 Group Exercise Multistep income statement...Ch. 3 - Prob. 3ATCCh. 3 - Prob. 4ATC
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Similar questions
- A sales invoice included the following information: merchandise price, P4,200; transportation, P320; terms 1/10, n/EOM, FOB shipping point. Assuming that a credit for merchandise returned of P600 is granted prior to payment, that the transportation is prepaid by the seller, and the invoice is paid within the discount period, what is the amount of cash received by the seller? O A. P3,878 B. P3,880.80 O C. P3,558 O D. P3,884 20arrow_forwardA sales invoice included the following information: merchandise price, P4,100; transportation, P320; terms 1/10, n/EOM, FOB destination. Assuming that a credit for merchandise returned of P605 is granted prior to payment, that the transportation is prepaid by the seller, and the invoice is paid within the discount period, what is the amount of cash received by the seller? O A. 3,780.05 O B. 3,776.85 C. 3,460.05 O D. 3,140.05arrow_forwardAn invoice received included the following information: merchandise price, $3,800; terms 1/10, n/eom; FOB shipping point with prepaid freight of $592. Assuming that a credit for merchandise returned of $800 is granted prior to payment and that the invoice is paid within the discount period, what amount of cash should be paid by the buyer? a. $3,800 b. $3,562 c. $4,348 d. $800arrow_forward
- Ameen LLC sold goods of OMR 7150 on account. The entry to record the sales the entry will be Select one: a. Debit to Accounts Payable A/C and Credit to Purchases A/C. O b. Debit to Purchases A/C and Credit to Accounts Payable. O c. Debit to Sales A/C and Credit to Accounts Receivable. O d. Debit to Accounts Receivable A/C and Credit to Sales A/C.arrow_forwardHoffman Company purchased merchandise on account from a supplier for $65,000, terms 1/10, n/30. Hoffman Company returned $7,500 of the merchandise and received full credit.a. If Hoffman Company pays the invoice within the discount period, what is the amount of cash required for the payment?b. What account is debited by Hoffman Company to record the return?arrow_forwardSales-Related Transactions Merchandise is sold on account to a customer for $16,500, terms FOB shipping point, 1/10, n/30. The seller paid the freight of $630. Determine the following: a. Amount of the sale $ b. Amount debited to Accounts Receivable $ c. Amount received within the discount period $arrow_forward
- A sales invoice included the following information: merchandise price, $8,100; terms 1/10, n/eom, FOB shipping point with prepaid freight of $300 added to the invoice. Assuming that a credit for merchandise returned of $900 is granted prior to payment and the invoice is paid within the discount period, what is the amount of cash that should be received by the seller? a.$8,319 b.$9,210 c.$7,428 d.$891arrow_forwardThe Wheatland Company purchased merchandise on account from a supplier for $30,000, terms 1/10, n/30. The Wheatland Company returned $8,000 of the merchandise and received full credit.a. What is the amount of cash required for the payment within the discount period?b. Under a perpetual inventory system, what account is credited by The Wheatland Company to record the return?arrow_forwardThe Stationery Company purchased merchandise on account from a supplier for $9,300, terms 1/10, n/30. The Stationery Company returned $1,200 of the merchandise and received full credit. a. If Stationery Company pays the invoice within the discount period, what is the amount of cash required for the payment? b. Under a perpetual inventory system, what account is credited by Stationery Company to record the return? Cost of Merchandise Sold ? Inventory ? Sales ? Accounts Payable?arrow_forward
- Halibut Company purchased merchandise on account from a supplier for $18,600, terms 2/10, n/30. Halibut Company returned $5,000 of the merchandise and received full credit.a. If Halibut Company pays the invoice within the discount period, what is the amount of cash required for the payment?b. What account is credited by Halibut Company to record the return?arrow_forwardA sales invoice included the following information: merchandise price, $4,500; transportation, $300; terms 1/10, n/eom, FOB shipping point. Assuming that a credit for merchandise returned of $600 is granted prior to payment, that the transportation is prepaid by the seller, and that the invoice is paid within the discount period, what is the amount of cash received by the seller?arrow_forwardUsing T accounts for Cash, Accounts Payable, Purchases, Purchases Returns and Allowances, Purchases Discounts, and Freight-In, enter the following purchase transactions. Identify each transaction with its corresponding letter. Use a new set of T accounts for each set of transactions. Purchase of merchandise with freight-in. a) Merchandise is purchased on account, $2,800 plus freight charges of $100. Terms of the sale were FOB shipping point. b) Payment is made for the cost of merchandise and the freight charge.arrow_forward
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