FUNDAMENTALS OF FINANCIAL ACCOUNTING
6th Edition
ISBN: 9781260664386
Author: PHILLIPS, LIBB
Publisher: MCG
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Chapter 6, Problem 11E
Reporting Net Sales after Sales Discounts
The following transactions were selected from the records of Evergreen Company:
| July 12 | Sold merchandise to Wally Butler, who paid the $1,000 purchase with cash. The goods cost Evergreen Company $600. |
| 15 | Sold merchandise to Claudio’s Chair Company at a selling price of $5,000 on terms 3/10, n/30. The goods cost Evergreen Company $3,500. |
| 16 | Sold merchandise to Otto’s Ottomans at a selling price of $3,000 on terms 3/10, n/30. The goods cost Evergreen Company $1,900. |
| 23 | Received cash from Claudio’s Chair Company for the amount due from July 15. |
| 31 | Received cash from Otto’s Ottomans for the amount due from July 16. |
Required:
Compute the amount of revenue to be reported for the month ended July 31.
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Recording journal entries for net sales with credit sales and sales discounts.
The following transactions were selected from the records of Evergreen Company
July 12
Sold merchandise to Wally Butler, who paid the $1,000 purchase with cash. The goods cost Evergreen Company $600.
July 15
Sold merchandise to Claudio’s Chair Company at a selling price of $5,000 on terms 3/10, n/30. The goods cost Evergreen Company $3,500.
July 16
Sold merchandise to Otto’s Ottomans at a selling price of $3,000 on terms 3/10, n/30. The goods cost Evergreen Company $1,900.
July 23
Received cash from Claudio’s Chair Company for the amount due from July 15.
July 31
Received cash from Otto’s Ottomans for the amount due from July 16.
Required:
Prepare journal entries to record the transactions, assuming Evergreen Company records discounts using the net method in a perpetual inventory system. Forfeited discounts are recorded as Other Revenue. (If no entry is required for a transaction/event,…
The following transactions were selected from the records of Evergreen Company:
July 12 Sold merchandise to Wally Butler, who paid the $1,060 purchase with cash. The goods cost Evergreen Company
$630.
July 15
Sold merchandise to Claudio's Chair Company at a selling price of $5,060 on terms 3/10, n/30. The goods cost
Evergreen Company $3,530.
July 20
Sold merchandise to Otto's Ottomans at a selling price of $3,030 on terms 3/10, n/30. The goods cost Evergreen
Company $1,930.
July 23 Received cash from Claudio's Chair Company for the amount due from July 15.
July 31 Received cash from Otto's Ottomans for the amount due from July 20.
Required:
Compute the amount of Net Sales to be reported for the month ended July 31 (Round your answer to 2 decimal places.)
Net Sales
The following transactions were selected from the records of Evergreen Company:
July 12 Sold merchandise to Wally Butler, who paid the $1,100 purchase with cash. The goods cost Evergreen Company
$650.
July 17
July 18
July 23
July 31 Received cash from Otto's Ottomans for the amount due from July 18.
Sold merchandise to Claudio's Chair Company at a selling price of $5,100 on terms 3/10, n/30. The goods
cost Evergreen Company $3,550.
Sold merchandise to Otto's Ottomans at a selling price of $3,050 on terms 3/10, n/30. The goods cost
Evergreen Company $1,950.
Received cash from Claudio's Chair Company for the amount due from July 17.
Required:
Compute the amount of Net Sales to be reported for the month ended July 31. (Round your answer to 2 decimal places.)
Net Sales
Chapter 6 Solutions
FUNDAMENTALS OF FINANCIAL ACCOUNTING
Ch. 6 - Prob. 1QCh. 6 - If a Chicago-based company ships goods on...Ch. 6 - Define goods available for sale. How does it...Ch. 6 - Define beginning inventory and ending inventory.Ch. 6 - Describe how transportation costs to obtain...Ch. 6 - What is the main distinction between perpetual and...Ch. 6 - Why is a physical count of inventory necessary in...Ch. 6 - What is the difference between FOB shipping point...Ch. 6 - Describe in words the journal entries that are...Ch. 6 - What is the distinction between Sales Returns and...
Ch. 6 - Prob. 11QCh. 6 - In response to the weak economy, your companys...Ch. 6 - Prob. 13QCh. 6 - Why are contra-revenue accounts used rather than...Ch. 6 - What is gross profit? How is the gross profit...Ch. 6 - Prob. 1MCCh. 6 - Prob. 2MCCh. 6 - Prob. 3MCCh. 6 - Prob. 4MCCh. 6 - Prob. 5MCCh. 6 - Prob. 6MCCh. 6 - Prob. 7MCCh. 6 - Prob. 8MCCh. 6 - A company bundles a product and service that...Ch. 6 - Prob. 10MCCh. 6 - Distinguishing among Operating Cycles Identify the...Ch. 6 - Calculating Shrinkage in a Perpetual Inventory...Ch. 6 - Accounting for Inventory Transportation Costs XO...Ch. 6 - Prob. 4MECh. 6 - Evaluating Inventory Cost Components Assume...Ch. 6 - Recording Journal Entries for Purchases and Safes...Ch. 6 - Prob. 7MECh. 6 - Prob. 8MECh. 6 - Prob. 9MECh. 6 - Prob. 10MECh. 6 - Calculating Shrinkage and Gross Profit in a...Ch. 6 - Prob. 12MECh. 6 - Preparing a Multistep Income Statement Sellall...Ch. 6 - Computing and Interpreting the Gross Profit...Ch. 6 - Computing and Interpreting the Gross Profit...Ch. 6 - Interpreting Changes in Gross Profit Percentage...Ch. 6 - Determining the Cause of Increasing Gross Profit...Ch. 6 - Understanding Relationships among Gross Profit and...Ch. 6 - Prob. 19MECh. 6 - Recording Journal Entries for Purchase Discounts...Ch. 6 - Recording Journal Entries for Sales and Sales...Ch. 6 - Recording Journal Entries for Sales and Sales...Ch. 6 - Prob. 23MECh. 6 - Prob. 24MECh. 6 - Relating Financial Statement Reporting to Type of...Ch. 6 - Inferring Merchandise Purchases The Gap, Inc., is...Ch. 6 - Identifying Shrinkage and Other Missing inventory...Ch. 6 - Prob. 4ECh. 6 - Prob. 5ECh. 6 - Inferring Missing Amounts Based on Income...Ch. 6 - Reporting Purchases and Purchase Discounts Using a...Ch. 6 - Reporting Purchases, Purchase Discounts, and...Ch. 6 - Items Included in Inventory PCM, Inc., is a direct...Ch. 6 - Prob. 10ECh. 6 - Reporting Net Sales after Sales Discounts The...Ch. 6 - Reporting Net Sales after Sales Discounts and...Ch. 6 - Determining the Effects of Credit Sales, Sales...Ch. 6 - Analyzing and Recording Sales and Gross Profit...Ch. 6 - Prob. 15ECh. 6 - Inferring Missing Amounts Based on Income...Ch. 6 - Analyzing Gross Profit Percentage on the Basis of...Ch. 6 - Analyzing Gross Profit Percentage on the Basis of...Ch. 6 - (Supplement 6A) Recording Journal Entries for...Ch. 6 - (Supplement 6A) Recording Journal Entries for...Ch. 6 - (Supplement 6A) Recording Journal Entries for...Ch. 6 - (Supplement 6A) Recording Journal Entries for...Ch. 6 - Prob. 23ECh. 6 - Prob. 24ECh. 6 - (Supplement 6A) Recording Journal Entries for Net...Ch. 6 - Prob. 26ECh. 6 - Prob. 27ECh. 6 - Prob. 28ECh. 6 - (Supplement 6A) Recording Purchases and Sales...Ch. 6 - Purchase Transactions between Wholesale and Retail...Ch. 6 - Prob. 2CPCh. 6 - Recording Cash Sales, Credit Sales, Sales Returns,...Ch. 6 - Prob. 4CPCh. 6 - Preparing a Multistep Income Statement and...Ch. 6 - (Supplement A) Recording Inventory Transactions...Ch. 6 - Reporting Purchase Transactions between Wholesale...Ch. 6 - Reporting Sales Transactions between Wholesale and...Ch. 6 - Recording Sales with Discounts and Returns and...Ch. 6 - Prob. 4PACh. 6 - Preparing a Multistep Income Statement and...Ch. 6 - (Supplement A) Recording Inventory Transactions...Ch. 6 - Reporting Purchase Transactions between Wholesale...Ch. 6 - Prob. 2PBCh. 6 - Prob. 3PBCh. 6 - Prob. 4PBCh. 6 - Preparing a Multistep Income Statement and...Ch. 6 - (Supplement A) Recording Inventory Transactions...Ch. 6 - Reporting Cash, Inventory Orders, Purchases,...Ch. 6 - Preparing Journal Entries for Inventory Purchases,...Ch. 6 - Finding Financial Information Refer to the...Ch. 6 - Prob. 2SDCCh. 6 - Ethical Decision Making: A Mini-Case Assume you...Ch. 6 - Prob. 5SDCCh. 6 - Preparing Multistep Income Statements and...Ch. 6 - Prob. 1CC
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