Eastern Trading Co purchases $350,000 of merchandise with credit terms of 2/10, n60 on March 4th 2020 and shipping terms FOB Destination from Sohail LLC How will Sohail LLC record the above transaction on March, 4th 2020? Dr Trade Receivables $350,000 Cr Sales $350,000 Dr Cash $350,000 Cr Sales $350,000 Dr Purchases $350,000 Cr Cash $350,000 Dr Trade Payables $ 350,000 Cr Cash $350,000

Eastern Trading Co purchases $350,000 of merchandise with credit terms of 2/10, n60 on March 4th 2020 and shipping terms FOB Destination from Sohail LLC How will Sohail LLC record the above transaction on March, 4th 2020? Dr Trade Receivables $350,000 Cr Sales $350,000 Dr Cash $350,000 Cr Sales $350,000 Dr Purchases $350,000 Cr Cash $350,000 Dr Trade Payables $ 350,000 Cr Cash $350,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 63E

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the sales ledger and purchase ledger junta ltd as at 31 may 2020. purchase ledger balances as 1 june 2020 $19,420sales ledger balance as 1 june 2020 $28,227purchase journal $210,416sales journal $305,824returns outwards $1,452returns inwards $3,618cheques paid to suppliers $205,751cash paid to supplier $62cheques ans cash received from customers $287,317discount allowed $4,102discount received $1,721contras against purchase ledger $640 1) Sales ledger control2)Puchase ledger control
Modern Enterprises Co purchases $200,000 of merchandise with credit terms of 3/10, n60 on March, 4th, 2020 and shipping terms FOB Destination from Al Maha Trading LLC. What Journal entry will be recorded by Al Maha Trading LLC, if it receives the payment from Modern Enterprises on March, gth 2020? Dr Cash $194,000 Dr Discount Received $6,000 Cr. Trade Payables $200,000 Dr Cash $194,000 Dr Discount Allowed $6,000 Cr Trade Payables $200,000 Dr Cash $194,000 Dr Discount Allowed $6,000 Cr Trade Receivables $200,000 Dr Cash $194,000 Dr Discount Received $6,000 Cr Trade Receivables $200,000
the data and terms and condition for the purchase of merchandise: Invoice Date October 12, 2020 Catalog Price per item P230.000 Quantity Ordered 5 Trade Discoun1 10% Trade Discount 2 15% Credit Term 3/15, n/30 ODate Paid ctober 26 2020 How much is the total cash to be paid for the merchandise purchase?
1. FDN Trading recorded the following events involving a recent purchase of merchandise: Received goods for P35,000, terms 2/10, n/30. Returned P900 of the shipment for credit. Paid P400 freight on the shipment on terms FOB Destination Point. Paid the invoice within the discount period. How much is the net cost of purchases? 2. On November 1, 2021, FDN Trading sold merchandise to ABC Trading worth P43,000 with credit term of 1/10, n/30 under freight term FOB Destination. The cost of the freight of P1,200 was paid by FDN. On November 3, ABC Trading returned some defective merchandise worth P4,300 and on the following day, made a partial payment of P14,000. How much is the final amount collected by FDN Trading assuming that collection is made within the discount period? 3. FDN Trading had the following selected transactions on November 5: Purchase of furniture on account, P24,000 Purchase of merchandise for P31,000 less 10 on terms 40% down and the balance 2/10 n/30 Sale of…
Dr. Receivables Cr. Purchases Dr. Sales Returns Cr. Receivables Dr. Sales Cr. Receivables Dr. Receivables Cr. Sales Modern Enterprises Co purchases $200,000 of merchandise with credit terms of 3/10, n60 on March, 4th, 2020 and shipping terms FOB Desti
Merchandise subject to terms 1/10, n/30, FOB shipping point is sold on account to a customer for P15,000. The seller paid transportation costs of P1,000 and issued a credit memorandum for P5,000 prior to payment. What is the amount of the cash discount allowable? O A. P160 О в. B. P150 C. P140 O D. P100
Cruise Industries purchased $10,800 of merchandise on February 1, 2020, subject to a trade discount of 10% and with credit terms of 3/15, n/60. It returned $2,500 (gross price before trade or cash discount) on February 4. The invoice was paid on February 13. Instructions a. Assuming that Cruise uses the perpetual method for recording merchandise transactions, record the purchase, return, and payment using the gross method. b. Assuming that Cruise uses the periodic method for recording merchandise transactions, record the purchase, return, and payment using the gross method. c. At what amount would the purchase on February 1 be recorded if the net method were used?
On January 15, 2021, X Company bought merchandise from Y Company amounting to P30,000 (VAT exclusive). Terms 2/10, n/30, FOB shipping point, freight collect. Amount of freight cost is P1,000, The amount of Accounts Receivable to be recorded on the date of purchase will be⚫
Let’s Check Activity 1. Trade and Cash Discount Calculations On June 1, 2020, Marie Chavez Products sold merchandise with a P120,000 list price. Trade Discount Credit Terms Date Paid a. 30% 2/10, n/30 June 8 b. 40% 2/10, n/30 June 15 c. - 2/10, n/30 June 11 d. 20% 1/15, n/30 June 14 e. 40% n/30 June 28 Required: For each of the sales terms, determine the following: 1. the amount recorded as a sale. 2. the amount of cash received. Activity 2. Cash Discount and Remittance Calculations For each of the following Paz Abad Company purchases, assume that credit terms 2/10, n/30 and that any credit memorandum was issued and known before Paz Abad made the payments. Purchases Shipping Terms Prepaid Freight Credit Memo (by seller) a. 12,000 FOB Shipping point 1,000 3,000 b. 24,000 FOB Destination 2,400 2,000 c. 28,000 FOB Shipping point 4,000 d. 40,000 FOB Shipping point 3,000 Required: 1. Determine the cash discount available. 2. Determine the cash remitted if the payment is made within the…
How much is the accounts payable credited if the company purchased merchandise on February 23, 2020, with a P310,000 list price, P10,000 shipping costs, terms of FOB Destination, freight collect, 2/10, 3/15, n/30, and paid in full on March 5, 2020? Your answer
Treat the following Financial Transactions as independent scenarios: 1. The Buyer and Seller agreed on the term FOB Shipping Point, Freight Collect for the freight cost of $12,500 for the sales transactions of $325,000 on June 22, 2019. The Buyer paid in full on July 2 for the credit term 1/10, n/15. 2. The Seller sold merchandise on March 26, 2019 with the list price of $500,000 at trade discount of 10%, 5%. The terms of shipment is FOB – Shipping Point, Freight Prepaid with the freight amounting to S15,000. The Buyer's credit term is 3/EOM, n/60. The Buyer paid all the accounts on March 31, 2019. 3. On January 28, 2019 the Buyer purchased $450,000 worth of inventory at 10% trade discount with a term of 2/10, n/30. The freight cost is P25,000 on FOB - Shipping Point, Freight Collect. The Seller collected in full what is due from the Buyer on February 08, 2019. 4. The term of shipment on the sale of goods on September 28, 2019 for $1,500,000 is FOB Destination, Freight Collect with…
A. At the end of December 2020, the accounting records of XYZ firm present the following transactions for a particular merchandise that sold at €20 per unit: Transaction Units Amount Inventory, 1/12/2020 200 2,000 € Purchase, 10/12/2020 150 1,800 € Purchase, 15/12/2020 120 1,800 €Purchase, 23/12/2020 170 2,720 € Sale 180 Sale 120 In addition, the level of operating expenses in December is €1,500 and the tax rate is 20%. The firm has decided to distribute the after-tax profits to shareholders. 1. If XYZ firm uses a periodic inventory system, prepare a summarized income statement for December 2020 under each inventory cost flow assumption: (a) weighted average, (b) FIFO, (c) LIFO, and (d) specific identification. For specific identification, assume that the first sale was out of the beginning inventory and the second sale was out of the December 23 purchase. Exhibit inventory calculations in detail. 2. Which…