Principles of Accounting
12th Edition
ISBN: 9781133626985
Author: Belverd E. Needles, Marian Powers, Susan V. Crosson
Publisher: Cengage Learning
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Question
Chapter 6, Problem 5P
1.
To determine
Prepare journal entities by assuming that periodic inventory system is used.
2.
To determine
Explain whether the terms “net sales” and “sales” are equivalent and comparable, state the content of the net sales and explain the reason for which the company uses sales instead of net sales.
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Students have asked these similar questions
On October 4, 2008, Terry Corporation
had eredit sales transactions of P2,80o from
merchandise having cost P1.900. The entries
to record the day's credit transactions
include a *
debit of P2,800 to Merchandise Inventory.
credit of P2,800 to Sales.
debit of P1,900 to Merchandise Inventory.
O credit of P1,900 to Cost of Goods Sold.
HOW DO I PREPARE A TRANSACTION CHART?
On June 10, Wildhorse Company purchased $9,500 of merchandise on account from Novak Company, FOB shipping point, terms 2/10, n/30. Wildhorse pays the freight costs of $590 on June 11. Damaged goods totaling $350 are returned to Novak for credit on June 12. The fair value of these goods is $75. On June 19, Wildhorse pays Novak Company in full, less the purchase discount. Both companies use a perpetual inventory system.
Sims Company regularly sells merchandise to Laurier Supply on terms 2/15, n/30 and records sales at
gross. During a recent month, the two firms engaged in the following transactions:
a. Sims sold merchandise with a list price of $38,400.
b. Sims sold merchandise with a list price of $48,000.
c. Laurier paid for the purchase in Transaction a within the discount period.
d. Laurier paid for the purchase in Transaction b after the discount period.
Required:
1. Provide the journal entries for Sims to record the sales in Transactions a and b.
(a)
Record sale
(b)
Record sale
2. Record the journal entry for Sims to record the receipt of Laurier's payment in Transaction c. For those
boxes in which no entry is required, leave the box blank.
(c)
Record collection of cash within discount period
3. Record the journal entry for Sims to record the receipt of Laurier's payment in Transaction d.
(d)
Record collection of cash after discount period
4. CONCEPTUAL CONNECTION: What implied annual interest…
Chapter 6 Solutions
Principles of Accounting
Ch. 6 - Prob. 1DQCh. 6 - Prob. 2DQCh. 6 - Prob. 3DQCh. 6 - Assume a large shipment of uninsured merchandise...Ch. 6 - Prob. 5DQCh. 6 - Prob. 6DQCh. 6 - Prob. 7DQCh. 6 - Indicate whether each of the statements that...Ch. 6 - Prob. 2SECh. 6 - Prob. 3SE
Ch. 6 - Prob. 4SECh. 6 - Prob. 5SECh. 6 - Prob. 6SECh. 6 - Prob. 7SECh. 6 - Prob. 8SECh. 6 - Record the following transactions using T...Ch. 6 - Prob. 10SECh. 6 - Prob. 11SECh. 6 - Sutton Hills Companys management made the...Ch. 6 - Prob. 2EACh. 6 - A company has the following data: net sales,...Ch. 6 - Prob. 4EACh. 6 - Prob. 5EACh. 6 - Linear Company engaged in the following...Ch. 6 - Prob. 7EACh. 6 - Prob. 8EACh. 6 - Prob. 9EACh. 6 - Prob. 10EACh. 6 - Prob. 11EACh. 6 - Prob. 12EACh. 6 - Prob. 13EACh. 6 - Prob. 14EACh. 6 - Prob. 15EACh. 6 - Matuska Tools Corporations income statements...Ch. 6 - Selected accounts from Murrays Furniture Stores...Ch. 6 - Prob. 3PCh. 6 - Selected accounts from Dences Gourmet Shops...Ch. 6 - Prob. 5PCh. 6 - Teague Company engaged in the following...Ch. 6 - Prob. 7APCh. 6 - Prob. 8APCh. 6 - Prob. 9APCh. 6 - Prob. 10APCh. 6 - Prob. 11APCh. 6 - Prob. 12APCh. 6 - Prob. 1CCh. 6 - Prob. 2CCh. 6 - Prob. 3CCh. 6 - Prob. 4CCh. 6 - Prob. 5CCh. 6 - Prob. 6C
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