The following transactions were selected from the records ofEvergreen Company:July12Sold merchandise to...

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.

Solutions

Expert Solution

COMPUTATION OF AMOUNT OF REVENUE TO BE REPORTED FOR THE MONTH ENDED JULY 31.

JULY 12, Merchandise Sold = $1000

JULY 15, Merchandise sold = $5000

JULY 16, Merchandise sold = $3000

(-) Cost of goods sold on july 12 = ($600)

(-) Cost of goods sold on july 15 = ($3500)

(-) Cost of goods sold on july 16 = ($1900)

(-) Discount on merchandise

Sold on july15 ( 5000×3% ) = ($1500)

____________

NET REVENUE TO BE REPORTED = $1500.

And There is no discount allowed to Otto's ottomans as they paid after 10 days credit period.

ekkarill92 answered 2 years ago

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