Question

In: Accounting

1. The amount of discount is determined by multiplying the invoice total (after any returns and...

1. The amount of discount is determined by multiplying the invoice total (after any returns and allowances and freight charges have been deducted) by the cash discount rate.

For the following purchases of merchandise, determine the amount of cash to be paid. If required, round your answers to the nearest cent.


Purchase

Invoice Date

Credit Terms

FOB
Amount of
Purchase
Freight
Charges
Total Invoice
Amount
Returns and
Allowances

Date Paid
Amount of cash
to be paid
a. 7/7/13 2/10, n/30 Shipping point $1,000 $50 $1,050 - 7/11/13 $
b. 7/10/13 n/30 Shipping point $800 $30 $830 $40 7/31/13
c. 7/15/13 1/10, n/30 Destination $650 - $650 $50 7/20/13

2. When recording a cash receipt from a customer within the discount period, the business records a debit to Cash for the amount received, a debit to Sales Discounts for the amount of the discount, and a credit to Accounts Receivable for the full amount of the invoice less any returns and allowances.

Record the following sales transactions in general journal form on the books of Collins Company (the seller).

a. Sold merchandise on account to Gallagher Company, invoice No. 1501, $2,000; terms 1/10, n/30.
b. Issued credit memo No. 125 to Gallagher Company for damaged merchandise, $250.
c. Gallagher Company paid the account in full within the discount period.

If an amount box does not require an entry, leave it blank. If required, round your answers to the nearest cent.

GENERAL JOURNAL PAGE 1
DESCRIPTION POST. REF. DEBIT CREDIT
a.
      
Sold merchandise to Gallagher Company , Inv. No. 1501
b.
      
Issued credit memo No. 125
c.
Received payment in full.

Solutions

Expert Solution

Answer to Question 1:

Answer to Question 2:


Related Solutions

1. Find the total amount due on the invoice. Round answer to the nearest cent. Taxable...
1. Find the total amount due on the invoice. Round answer to the nearest cent. Taxable Sale Sales Tax Percent Invoice Total $380.98 5.5% $ 2.   Marisa Tallifero bought a cordless phone priced at $49.99. It was subject to 8.75% sales tax. Round answer to the nearest cent. a. What was the sales tax? $ b. What was the total amount Marisa paid for the phone? $ 3. Find the total amount due on the invoice. Round answer to the...
1. Credit term of 1/100, n/30 mean A 1% discount is allowed if the invoice is...
1. Credit term of 1/100, n/30 mean A 1% discount is allowed if the invoice is paid within 10 days, or the entire net amount is due within 30 days A 1% discount is allowed if the invoice is paid within 30 days A 10% discount is allowed if the bills is paid within 1 day of receipt, or the entire amount is due within 30 days None of the above. 2. . The perpetual inventory system involves Counting goods...
1) M. Freeman received an invoice from D. Wayans Automotive Parts. The invoice stated the total...
1) M. Freeman received an invoice from D. Wayans Automotive Parts. The invoice stated the total of $52,000 for twelve pairs of Corvette fenders with the terms 2/10, n/30 printed at the bottom. If Mr. Freeman wishes to take advantage of the discount associated with this item, how much and by when does he need to pay? A. $50,960 must be paid within 30 days B. $44,200 must be paid within 30 days C. $50,960 must be paid within 10...
Hand volume can be determined by measuring the amount of water displaced in a beaker after...
Hand volume can be determined by measuring the amount of water displaced in a beaker after the hand is dipped in it. A student read a report that the median hand-volume of college-age males is 400ml. To test whether this is true at her school, she convinced 12 of her male friends to dip their hands in a beaker of water. Her measurements (in ml) are below: 400 360 420 520 460   350 500 420 450 430 395 400 Report...
thoroughly explain how Total Material Costs were determined by any company that makes any type of...
thoroughly explain how Total Material Costs were determined by any company that makes any type of Breakfast Cereal for the purpose of establishing a reasonable selling price for one or more of their Breakfast Cereals.
CASH DISCOUNT 6. A manufacturer sends an invoice dated Nov. 1 with terms 2/10, n/30 in...
CASH DISCOUNT 6. A manufacturer sends an invoice dated Nov. 1 with terms 2/10, n/30 in the      amount of $950. If the invoice is paid on or before Nov. 11, what amount is      paid? If you don’t take advantage of the discount and the invoice is paid by      Dec. 1, what amount is paid?
1. ____ is the ratio of total loan amount by the total value of the property....
1. ____ is the ratio of total loan amount by the total value of the property. Select one: a. housing-to-income-ratio b. loan-to-value ratio c. debt-to-income ratio d. liability-to-market value ratio 2. The five C s of credit stands for: Select one: a. capacity, character, conditions, collateral, and capital. b. capability, cooperation, creativity, collateral, and capital. c. conditions, competence, capital, conditions, and capacity. d. cooperation, capacity, collateral, creativity, and conditions. 3. Non-depository institutions that lend funds to individuals to finance consumer...
Introduction Transportation accounts for a signification amount of the total energy consumed in any country, and...
Introduction Transportation accounts for a signification amount of the total energy consumed in any country, and Trinidad and Tobago is no exception. The bulk of the energy so used comes from burning fossil fuels. The Task You are required to determine the reduction in energy consumption if electric vehicles are used instead of internal combustion engines. You must also determine the reduction in carbon dioxide generated if the electricity used to charge the vehicles comes from the power stations burning...
Which of the following returns will give you the highest dollar amount after 6 years? 49%...
Which of the following returns will give you the highest dollar amount after 6 years? 49% total return 6.9% annual return 3.4% semiannual return 0.55% monthly return
10-1 Describe how the value of any asset is determined.
10-1 Describe how the value of any asset is determined.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT