Question
In: Accounting
Merchandise with an invoice price of $16,100 is sold subject to terms of 2/10, n/30, FOB...
Merchandise with an invoice price of $16,100 is sold subject to terms of 2/10, n/30, FOB shipping. The seller prepaid $151 for the cost of transportation. How much does the seller record in the Sales account at the time of the sale?
Solutions
Expert Solution
The Journal Entry at the time of sale in Sellers Books :
| Accounts Receivable | 16251 | |
| Sales | 16100 | |
| Cash | 151 | |
| (To record sales made on account and freight incurred on sales) |
In FOB Shipping Point, Freight should be paid by the buyer of goods and in this case, Since the seller has already prepaid the freight, it will be reimbursed by the buyer at the time of making payment.
ekkarill92 answered 2 years agoRelated Solutions
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A sales invoice included the following information: merchandise
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shipping. Assuming that merchandise that cost $3,600 is returned
before it has been paid for, that the transportation is prepaid by
the seller, and that the invoice is paid within the discount
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Dec. 3 Carla Vista Company sold merchandise to Thomas Co. for $31,000, terms 2/10, n/30, FOB...
Dec. 3
Carla Vista Company sold merchandise to Thomas Co. for $31,000,
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The correct company paid freight charges of $610.
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The correct company paid freight charges of $150.
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Carla Vista Company received the balance due from Thomas
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Carla...
A sales invoice included the following information: merchandiseprice, $49,800; transportation, $1,900; terms 2/10, n/30, FOB...
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journalize transactions May 20 Sold merchandise on account to Crescent Co., terms 1/10, n/30, FOB shipping...
journalize transactions
May
20
Sold merchandise on account to Crescent Co., terms 1/10, n/30,
FOB shipping point, $110,000. The cost of the merchandise sold was
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21
For the convenience of Crescent Co., paid freight on sale of
May 20, $2,300.
21
Received $42,900 cash from Gee Co. on account.
21
Purchased merchandise on account from Osterman Co., terms 1/10,
n/30, FOB destination, $88,000.
24
Returned of damaged merchandise purchased on May 21, receiving
a credit memo from the seller...
An item of merchandise was sold with an invoice price of $400 and credit terms of...
An item of merchandise was sold with an invoice price of $400 and
credit terms of 2/10, n/30. The entry to record the sale would
include a credit to Sales of
Select one:
a. $400
b. $396
c. $408
d. $392
The final closing entry to be journalized is typically the entry
that closes the
Select one:
a. revenue accounts.
b. owner's withdrawals account.
c. owner's capital account.
d. expense accounts.
The buyer received an invoice from the seller for...
June 2Romeo received an $18,000 invoice from one of its suppliers. Terms were 2/10 n/30, FOB...
June 2Romeo received an $18,000 invoice from one of its
suppliers. Terms
were 2/10 n/30, FOB shipping point.
3Romeo paid the freight bill amounting to $2,000.
4Romeo returned $2,500 of the merchandise billed on June 2
because it
was defective.
5Romeo sold $8,000 of merchandise on account, terms 3/15
n/30.
The cost of the merchandise sold was $5,100.
10Romeo paid the invoice dated June 2, less the return and the
discount.
15A customer returned $2,500 of merchandise sold on June...
June 2Romeo received an $18,000 invoice from one of its suppliers. Terms were 2/10 n/30, FOB...
June 2Romeo received an $18,000 invoice from one of its
suppliers. Terms
were 2/10 n/30, FOB shipping point.
3Romeo paid the freight bill amounting to $2,000.
4Romeo returned $2,500 of the merchandise billed on June 2
because it
was defective.
5Romeo sold $8,000 of merchandise on account, terms 3/15
n/30.
The cost of the merchandise sold was $5,100.
10Romeo paid the invoice dated June 2, less the return and the
discount.
15A customer returned $2,500 of merchandise sold on June...
A company purchased $11,900 of merchandise on June 15 with terms of 2/10, n/45, and FOB...
A company purchased $11,900 of merchandise on June 15 with terms
of 2/10, n/45, and FOB shipping point. The freight charge, $1,450,
was added to the invoice amount. On June 20, it returned $2,320 of
that merchandise. On June 24, it paid the balance owed for the
merchandise taking any discount it is entitled to. The cash paid on
June 24 equals:
Merchandise with an invoice price of $3,600 was purchased on February 3, terms 2/15, n/60. The...
Merchandise with an invoice price of $3,600 was purchased on
February 3, terms 2/15, n/60. The company uses the gross method to
record purchases and a perpetual inventory system. The entry to
record a cash payment of this purchase obligation on February 17
is:
Debit Accounts Payable $3,528; credit Cash $3,528.
Debit Accounts Payable $3,600; credit Cash $3,600.
Debit Accounts Payable $3,528; debit Discounts Lost $72; credit
Cash $3,600.
Debit Accounts Payable $3,600; credit Merchandise Inventory $72;
credit Cash $3,528....
Purchased merchandise on account from Black Wholesale Supply for $8,000, terms 1/10, n/30. 2 Sold merchandise...
Purchased merchandise on account from Black Wholesale Supply
for $8,000, terms 1/10, n/30.
2
Sold merchandise on account for $4,800, terms 2/10, n/30. The
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5
Received credit from Black Wholesale Supply for merchandise
returned $500.
9
Received collections in full, less discounts, from customers
billed on May 2.
10
Paid Black Wholesale Supply in full, less discount.
11
Purchased supplies for cash $1,170.
12
Purchased merchandise for cash $4,030.
15
Received $299 refund...
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