A business buys E1,000 of inventory on credit. What is the dual effect of this transactio n?
Q: Given the following data; TOTAL PURCHASES 150000 CASH PURCHASES 45000 PURCHASE RETURN S000 OPENING…
A: Creditors turnover ratio = net credit purchase * 2 / (Opening creditors + Closing creditors)
Q: A retailer pays on credit for $650 worth of inventory, terms 3/10, n/40. If the merchandiser pays…
A: Inventory sold on credit is worth $650. The terms of Inventory is 3/10 which means if the inventory…
Q: What is the entry to record the transaction on Kiner's books?
A: When a company purchased inventory in cash the inventory account will be debited and cash account…
Q: Using the FIFO method, the values of purchases and COGS after accounting for the transaction on May…
A: COGS using the FIFO method can be determined by the oldest inventory units sold.
Q: Alliance Corporation purchased inventory with an invoice price of $22,000 and credit terms of 1/10,…
A: Formula: Discount amount = Invoice amount x Discount rate
Q: This Year: Accounts receivable = P135,000 Inventory = P136,000 Sales on account = P698,000 Cost…
A: Average accounts receivable = (accounts receivable last year + accounts receivable this year)/ 2
Q: Given the following data; TOTAL SALES OMR 250000 CASH SALES OMR 125000 SALES RETURN OMR 5000 OPENING…
A: The correct option is A. 120000
Q: lo test your knowledge of the relationships of these items, insert the missing figures in the…
A: The numerical has covered the concept of followings, Gross Margin is the difference between Net…
Q: The records of a business show the following information. Sales, p724,200; Sales discounts, P10,000;…
A: Net sales in the business means sales revenue of the business after deducting sales discounts and…
Q: The following information were found from the records of FDN Company: Net Purchases = P90,000…
A: The discount can be of different types as trade discount and cash discount. The trade discount is…
Q: If Nico Corporation has annual purchases of $300,000 and accounts payable of $30,000, then average…
A: Average purchase per day is the total annual purchase dividend by the no of days in a year. Average…
Q: If the company has net sales (120000) D., Accounts receivable (16000) , So the collection period…
A: Net sales = 120000 Accounts receivable = 16000
Q: Use the following information for Transylvania Railroad: Long-term debt ratio: 0.4…
A: The values have been computed by evaluating the ratios provided. The ratios have been given as-…
Q: FN Trading recorded the following events involving a recent purchase of merchandise: Received goods…
A: SOLUTION- NET COST OF PURCHASE = (GROSS PURCHASE - PURCHASE RETURN) * (1-CASH DISCOUNT RATE) +…
Q: debit to cash for P3,000 Sales revenue Cost of goods sold Sales discounts Sales returns and…
A: Net sales revenue = Gross sales - sales return and allowance - sales discount Gross profit = Net…
Q: On October 4, 2008, Terry Corporation had credit sales transactions of P2,800 from merchandise…
A: Credit sales means sales which is made on account to customers and amount has not been received yet.…
Q: ABC Company sells all its merchandise on credit. Given the following information, what is the…
A: Given data, Profit Margin = 5.8% Average Collection Period = 53 days Accounts receivable = 250,000…
Q: Kingbird, Inc. purchased merchandise inventory with an invoice price of $13100 and credit terms of…
A: Given, Invoice price = $13,100 Terms = 2/10, n/30
Q: If a business sells $2000 worth of inventory to a customer for $3000 on credit, show all of the…
A: Journal entries are passed to record day to day transaction of business. To keep track of…
Q: Net credit sales?
A: It is pertinent to note that Net sales = Total sales - Sales returns and allowances Now Total…
Q: The trading results of a Merchandise trader is as follows: Net Sales OMR 100,000, Cost of Goods sold…
A: Formula: Gross profit = Sales revenue - cost of Good sold. Deduction of cost of goods sold from…
Q: JASMINE Enterprises' purchases per purchase invoice is ₱150,000. The purchase discount is 2/10,…
A: Under net method, the discount to be received on early payment will be reduced from the purchase…
Q: Shell Company purchased merchandise inventory with an invoice price of $4,000 and credit terms of…
A: Given Information : Invoice price of merchandise inventory purchased = $4,000 Credit terms = 2/10,…
Q: Uzam company has Tk. 1,312,500 in current assets and Tk. 525,000 in current liabilities. Its…
A: Current ratio measures the liquidity calculated by dividing current assets by current liabilities.…
Q: On October 4, 2006, an Corporation had credit sales transactions of $4,800 from merchandise having…
A: When sales are made to customers, then the sales and cost of goods sold transactions are recorded in…
Q: During February 1, 2018 Royal Company sold merchandise with a price of P100,000 towards Dew…
A: 2/10 net 30 means 2% discount will be there if payment is made with in 10 days and no discount after…
Q: Given the following data; TOTAL PURCHASES OMR 150000 CASH PURCHASES OMR 45000 PURCHASE RETURN OMR…
A: Formula: Credit purchases = Total purchases - purchase returns - Cash purchases.
Q: Sold goods to G George, invoice detailed 60 items @ R80 exclusive per item) Mark up is 150%.…
A: Sales=Units sold×Selling Price Cost of sales=Sales(100%+markup %)
Q: Walang Kayo Company provided the following data: 12/31/2019 P 600,000 4,000,000 2,400,000 1,200,000…
A: As per Accrual concept every income and expense should be recognise in the books of accounts as and…
Q: Problem C- Use the following information to answer questions below: Account Name Debit Credit Sales…
A: Cost of goods sold = Beginning merchandise inventory + Purchases - Purchase returns + Freight in -…
Q: EONY Enterprises' purchases per purchase invoice is ₱150,000. The purchase discount is 2/10, n/30.…
A: Formula: Net purchases = Purchase invoice - Purchase discount + Freight.
Q: A company purchases merchandise for $23,000. The seller also offers credit terms of 2/10, n/30.…
A: Cost of purchase = 23000 Credit Terms = 2/10, n/30
Q: For each of the following Mary Paz Abad Retailers purchases, assume that credit terms are 2/10 n/30…
A: The discount represents the lower amount price to be paid than the actual amount.
Q: Given the following data; TOTAL PURCHASES OMR 150000 CASH PURCHASES OMR 45000 PURCHASE RETURN OMR…
A: Net credit purchases = Total purchase - Cash purchase - Purchase return
Q: Jake's Market recorded the following events involving a recent purchase of merchandise: Received…
A: Formula: Discount amount = Invoice amount x discount rate
Q: Alliance Corporation purchased inventory with an invoice price of $22,000 and credit terms of 1/10,…
A: Invoice Price = 22,000 Credit Terms = 1/10,n/15 1% discount will be Provided if payment has made…
Q: How much is the accounts payable? • How much is the discount if paid in full within the discount…
A: The question pertains to discount allowed on timely payment. Whenever goods are sold on credit the…
Q: Vanessa company purchased P15,000 of merchandise on June 15 with terms of 3/10, n/45, and FOB…
A: Credit terms 3/10, n/45 means that 3% discount will be allowed if amount will be paid on 10 days,…
Q: AG Inc, made a €10,000 sale on account with the following terms: 1/15, n/30If the company uses the…
A: 1/15 net 30 means 1% discount will be there if payment is made with in 15 days and no discount after…
Q: The Flower Shoppe has accounts receivable of $3,506, inventory of $4,407, sales of $218,640 and cost…
A: Given Accounts Receivable = 3506
Q: Identify the account that is debited, when business makes credit purchases of goods worth OMR…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: From the following information, calculate the value of purchases: $ Opening trade payables 142,600…
A: We have the following information: Opening Trade Payables: $142,600 Cash Paid: $542,300 Discount…
Q: On October 1, Ace Company purchased P6,000 worth of goods on terms of 2/10, n/30. Freight of P500…
A: The purchase term of 2/10, n/30 implies that the purchaser will be given a 2% discount if the…
Q: FDN Company sold goods amounting to P5,000 on account. Freight is on terms FOB shipping point,…
A: FOB shipping point is a point where the liability of the seller ends and he is not responsible for…
Q: - CODE AND NAME OF THE ACCOUNT WILL BE DEBT 610 RETURNS ON SALES 1.000 191 DEDUCTIBLE VAT 180 100…
A: Discounting of goods: It refers to the amount of reduction from selling price of goods.
Q: Put this transaction on the accounting equation: bought goods for R7000 less 10% discount
A: The accounting equation implies that assets are equal to sum of liabilities and equity.
Q: GINKGO-NUTS Enterprises' purchases per purchase invoice is ₱150,000. The purchase discount is 2/10,…
A: Purchase discount=Value of purchases×Discount %=₱ 150,000×2%=₱ 3,000
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- Consider the following financial statement information: Item Beginning Year Ending Inventory € 9.780 € 11.380 € 4.108 € 4.938 € 7.636 € 7.927 Accounts Receivable Accounts Payable Credit Sales Cost of Goods Sold € 89.804 € 56.384 Calculate the operating and cash cycles. How do you interpret your answer?Question 19 If inventory prices are rising the method of inventory valuation that gives the highest profit and the highest ending inventory is: a. FIFO. b. LIFO. c. Weighted average. d. Perpetual method.a. Chapters 1-7 G Traducir antaFe iriclars Sotems TB MC Qu. 6-137 Using a perpetual inventory system, how... Using a perpetual Iventory system, how should a company record the sale of Inventory costing $550 for $1,170 on account? 1. InventorY 550 Cost oE GOods Sold 550 Sales Revenue 1,170 Accounts Receivable 1,170 2. Accounts Receivable 1,170 Sales Revenue 1,170 Cost of Goods Sold 550 Inventory 550 550 3. Inventory 620 Gain 1,170 Sales Revenue 1,170 Accounts Receivable 550 Sales Revenues 620 Gain Multiple Choice Ne
- Question 13 A customer returns $690 worth of merchandise and receives a full refund. What accounts recognize this sales return, assuming the customer has not yet remitted payment to the retailer? O accounts receivable, sales returns and allowances O accounts receivable, cash O sales returns and allowances, purchases O sales discounts, cost of goods soldLO4 Accounts receivable turnover is the number of times merchandise inventory turned over or was sold during the accounting period.Purchasing inventory on credit will result in the following changes to the business accounts: A.Increase one asset account and decrease another asset account B.decrease assets and decrease liabilities C.incease assets and decrease liabilities D.decrease assets amd decrease onwer's equity E.increase assets and increase onwer's equity
- QUESTION 4 A firm has a high level of inventory turnover and uses the First In First Out (FIFO) inventory valuation method. In a period of rising purchase prices what would the value of the closing inventory units be? a. Based on the prices of the first items received O b. Much lower than current purchase prices O . The average of all goods purchased in the period O d. Close to current purchase pricesQuestion 4 a) You have collected the following information for Fishy Berhad. Item Beginning Ending Inventory RM20,700 RM43,00 Account rceivable RM9,900 RM11,500 Account payable RM16,500 RM22,700 Other information provided are credit sales RM210,000 and cost of goods sold RM198,000. Calculate: i) Operating cycle ii) Cash cycleESSAY 1- 3. Are high turnover ratios good or bad? 4 - 6 If company A has accounts receivable turnover of 3.5 while company B has an accounts receivable turnover of 8.1, which is a better conipany? Explain vhy 7-9.What factors affect inventory turnover ratio? Jebt danag the 10 – 12.What factors affect accounts payable turnover ratio?
- QUESTION 4 Which of the following is used to analyze the efficiency and effectiveness of inventory management? a. inventory turnover only b. number of days' sales in inventory only c. both inventory turnover and number of days' sales in inventory d. neither inventory turnover or number of days' sales in inventoryTrue or False FE11An increase in Purchases Discounts is made by debiting the account FE12Net sales and gross sales are the same - FE13Sales Discounts is a revenue account with a debit balance -FE14Sales Returns and Allowances increase with a debit - FE15F.O.B. shipping point means that the seller of the goods is responsible for covering the shippingcosts -QUESTION 7 Using a perpetual inventory system, the entry to record the purchase of $30,000 of merchandise on account would include a a. credit to Sales b. debit to Accounts Payable c. debit to Merchandise Inventory O d. credit to Merchandise Inventory