Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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Textbook Question
Chapter 5, Problem 36E
Appendix 1
Discount taken in next fiscal year
Using the data for Sacajawea Mercantile Co. in Exercise 5-35, assume that Mark Bishop pays his June 30, 20Y4,
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The journal entry to record the receipt of a payment from customer within the discount period on a sale of
$2325 with terms of 3/10, n/30 will include a credit to
O a. Sales discounts for $70
O b. Accounts receivable for $2325
O c. Sales Revenue for $2325
O d. Cash for $2255
A credit sale of $1,400 is made on July 15,
terms 2/10, n/30, on which a return of $100 is
granted on July 18. What amount is received
as payment in full on July 24? $1,400 16.
$1,274 c. $1,350 d. $1,372 Assume that you are
the seller. Prepare the journal entry for the
July 24th payment received.
Notes Receivable Entries
1. Record the transactions in a general journal.
When required, enter amounts to the nearest cent. If an amount box does not require an entry, leave it blank. Assume 360 days in a year.
J. K. Pratt Co. had the following transactions:
20-1
July 20
Received a $750, 30-day, 5% note from J. Akita in payment for sale of merchandise.
Aug. 19
J. Akita paid note issued July 20 plus interest.
25
Sold merchandise on account to L. Beene, $1,100.
Sept. 5
L. Beene paid $100 and gave a $1,000, 30-day, 6% note to extend time for payment.
Oct. 5
L. Beene paid note issued September 5, plus interest.
10
Sold merchandise to R. Harris for $750: $50 plus a $700, 30-day, 6% note.
Nov. 9
R. Harris paid $200 plus interest on note issued October 10 and extended the note ($500) for 30 days.
Dec. 9
R. Harris paid note extended on November 9, plus interest.
10
Sold merchandise on account to B. Kraus, $1,500.
15
B. Kraus paid $150 on merchandise purchased on…
Chapter 5 Solutions
Financial And Managerial Accounting
Ch. 5 - Prob. 1DQCh. 5 - Can a business earn a gross profit but incur a net...Ch. 5 - The credit period during which the buyer of...Ch. 5 - What is the meaning of (A) 1/15, n/60; (B) n/30;...Ch. 5 - How are sales to customers using MasterCard and...Ch. 5 - What is the nature of (A) a credit memo issued by...Ch. 5 - Who is responsible for freight when the terms of...Ch. 5 - Name three accounts that would normally appear in...Ch. 5 - Audio Outfitter Inc., which uses a perpetual...Ch. 5 - Assume that Audio Outfitter Inc. in Discussion...
Ch. 5 - Gross profit During the current year, merchandise...Ch. 5 - Purchases transactions Elkhorn Company purchased...Ch. 5 - Prob. 3BECh. 5 - Freight terms Determine the amount to be paid in...Ch. 5 - Transactions for buyer and seller Shore Co. sold...Ch. 5 - Adjusting entries Hahn Flooring Company uses a...Ch. 5 - Asset turnover ratio Financial statement data for...Ch. 5 - Determining gross profit During the current year,...Ch. 5 - Determining cost of goods sold For a recent year,...Ch. 5 - Chart of accounts Monet Paints Co. is a newly...Ch. 5 - Purchase-related transactions The Stationery...Ch. 5 - Purchase-related transactions A retailer is...Ch. 5 - Purchase-related transactions The debits and...Ch. 5 - Prob. 7ECh. 5 - Purchase-related transactions Journalize entries...Ch. 5 - Sales-related transactions, including the use of...Ch. 5 - Customer refund Senger Company sold merchandise of...Ch. 5 - Prob. 11ECh. 5 - Prob. 12ECh. 5 - Sales-related transactions The debits and credits...Ch. 5 - Prob. 14ECh. 5 - Determining amounts to be paid on invoices...Ch. 5 - Sales-related transactions Showcase Co., a...Ch. 5 - Purchase-related transactions Based on the data...Ch. 5 - Prob. 18ECh. 5 - Prob. 19ECh. 5 - Normal balances of accounts for retail business...Ch. 5 - Income statement and accounts for retail business...Ch. 5 - Adjusting entry for inventory shrinkage Omega Tire...Ch. 5 - Adjusting entry for customer refunds, allowances,...Ch. 5 - Adjusting entry for customer refunds, allowances,...Ch. 5 - Income statement for retail business The following...Ch. 5 - Determining amounts for items omitted from income...Ch. 5 - Multiple-step income statement On March 31, 20Y9,...Ch. 5 - Multiple-step income statement The following...Ch. 5 - Single-step income statement Summary operating...Ch. 5 - Closing the accounts of a retail business From the...Ch. 5 - Closing entries; net income Based on the data...Ch. 5 - Closing entries On July 31, the close of the...Ch. 5 - Prob. 33ECh. 5 - Prob. 34ECh. 5 - Appendix 1 Adjusting entry for gross method The...Ch. 5 - Appendix 1 Discount taken in next fiscal year...Ch. 5 - Prob. 37ECh. 5 - Rules of debit and credit for periodic inventory...Ch. 5 - Journal entries using the periodic inventory...Ch. 5 - Identify items missing in determining cost of...Ch. 5 - Cost of goods sold and related items The following...Ch. 5 - Cost of goods sold Based on the following data,...Ch. 5 - Cost of goods sold Based on the following data,...Ch. 5 - Appendix 2 Cost of goods sold Identify the errors...Ch. 5 - Closing entries using periodic inventory system...Ch. 5 - Purchase-related transactions using perpetual...Ch. 5 - Sales-related transactions using perpetual...Ch. 5 - Sales and purchase-related transactions using...Ch. 5 - A Sales and purchase-related transactions for...Ch. 5 - Multiple-step income statement and balance sheet...Ch. 5 - Single-step income statement and balance sheet...Ch. 5 - Appendix 2 Purchase-related transactions using...Ch. 5 - Sales and purchase-related transactions using...Ch. 5 - Appendix 2 PR 5-9A Sales and purchase-related...Ch. 5 - 2. Net income, 185,000 Appendix 2 PR 5-10A...Ch. 5 - Purchase-related transactions using perpetual...Ch. 5 - Sales-related transactions using perpetual...Ch. 5 - Sales and purchase-related transactions using...Ch. 5 - Sales and purchase-related transactions for seller...Ch. 5 - Multiple-step income statement and balance sheet...Ch. 5 - Single-step income Statement and balance sheet...Ch. 5 - Purchase-related transactions using periodic...Ch. 5 - Sales and purchase-related transactions using...Ch. 5 - Appendix 2 Sales and purchase-related transactions...Ch. 5 - Appendix 2 PR 5-10B Periodic inventory accounts,...Ch. 5 - Palisade Creek Co. is a retail business that uses...Ch. 5 - Analyze and compare Amazon.com and Netflix...Ch. 5 - Analyze Dollar General Dollar General Corporation...Ch. 5 - Compare Dollar Tree and Dollar General The asset...Ch. 5 - Analyze and compare CSX, Union Pacific, and YRC...Ch. 5 - Analyze Home Depot The Home Depot (HD) reported...Ch. 5 - Analyze and compare Kroger and Tiffany The Kroger...Ch. 5 - Prob. 7MADCh. 5 - Ethics in Action Margie Johnson is a staff...Ch. 5 - Prob. 2TIFCh. 5 - Prob. 5TIFCh. 5 - Prob. 6TIFCh. 5 - Prob. 7TIF
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- SALES RETURNS AND ALLOWANCES ADJUSTMENT At the end of year 1, MCs estimates that 2,400 of the current years sales will be returned in year 2. Prepare the adjusting entry at the end of year 1 to record the estimated sales returns and allowances and customer refunds payable for this 2,400. Use accounts as illustrated in the chapter.arrow_forwardPayment dates On March 25, the following invoices were issued for a $500 purchase on credit. Indicate the meaning of each credit term. 2/10, net 30 date of invoice b. 2/10, net 40 EOM c. 2/10, net 20 EOM d. 2/10, net 60 date of invoice Cost of giving up cash discounts Determine the cost of giving up the cash discount under each of the following terms of sale. (Note: Assume a 365-day year.) 2/10 net 30 b. 1/10 net 30 c. 1/10 net 45 d. 3/10 net 90 e. 1/10 net 60 f. 3/10 net 30 g. 4/10 net 180arrow_forwardInstructions Notes Receivable Discounting 1. Record the transactions in a general journal. When required, enter amounts to the nearest cent. If an amount box does not require an entry, leave it blank. Assume 360 days in a year. Marienau Suppliers had the following transactions: Mar. 1 Sold merchandise on account to G. Perez $5,500. 20 G. Perez gave a $5,500, 90-day, 6% note to extend time for payment. 30 G. Perez's note is discounted at Commerce Bank at a discount rate of 8%. Apr. 20 Received a $2,600, 60-day, 6% note from D. Larson in payment for sale of merchandise. May 5 D. Larson's note is discounted at Commerce Bank at a discount rate of 7%. June 19 D. Larson's note is dishonored. The bank bills Marienau for the maturity value of the note plus a $50 bank fee. July 31 D. Larson's dishonored note is collected; Larson pays Marienau the maturity value of the note, the $50 bank fee, and interest at 6% on the maturity value plus the bank fee. Aug. 1 Sold merchandise on account to A.…arrow_forward
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