Telfer Co. uses the gross method to record sales made on credit. On July 1, 2014,...

Telfer Co. uses the gross method to record sales made on credit. On July 1, 2014, Telfer and its customer agreed to the details for sales of $75,000 with terms 2/10 n/30. On July 2, 2014, Telfer shipped the goods to its customers. On July 7, 2014, the customer received the goods from Telfer. On July 9, 2014, Telfer received $41,500 of the A/R from the July 1 sale. On July 25, 2014, Telfer received the balance from the customer. Prepare the required journal entries for Telfer Co. Be sure to include alternative journal entries given the potential shipping scenarios.

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Ameer Co. uses the gross method to record sales made on credit. On April 1, 2020,...

Ameer Co. uses the gross method to record sales made on credit. On April 1, 2020, it made sales of $150,000 with terms 3/15 n/45. On April 9, 2020, Ameer Co. received full payment for the April 1 sale. Prepare the required journal entries for Ameer Co. (gross method) Prepare the journal entries showing what the Net Method would look like Same info as above but change the date that payment was received to April 30, 2020 Prepare the required...

ABC Company uses the gross method to record sales made on credit. Using the T-account template...

ABC Company uses the gross method to record sales made on credit. Using the T-account template below, prepare the entries to recognize the following transactions. 6/1/17 Sold $50,000 of inventory, terms 3/15, n/45 6/3/17 Accepted a return from the customer of merchandise that was sold on 6/1/17 in the amount of $2,500 6/12/17 Received full payment for the 6/1/17 sale 50,000 ASSETS = LIABILITIES + EQUITY Non-current Assets Current Assets Property, Plant & Equipment Investments Intangible Assets/Other Current Liabilities...

Smart Co Sales made on credit. On July 1, 2018 it made sales of $60 000...

Smart Co Sales made on credit. On July 1, 2018 it made sales of $60 000 with the term 3/10, n/30. On July 9, 2018 Smart Co received $30000 payment for July 1 sales. Remaining Payment received by smart Co on 15th July, 2018. Requirement: Record the Journal Transaction with discount amount with Gross Method and Net Method.

QUESTION 1 When the net price method is used to record credit sales, the sales discounts...

QUESTION 1 When the net price method is used to record credit sales, the sales discounts not taken account is reported as a(n) addition to sales returns and allowances on the income statement deduction from gross sales on the income statement deduction from selling expenses on the income statement addition to other revenue on the income statement QUESTION 2 After the company completes the bank reconciliation, it makes journal entries for adjustments it made to the bank statement balance it...

Either the gross method or net method may be used to record sales with cash discounts,...

Either the gross method or net method may be used to record sales with cash discounts, but the net method requires a period-end adjusting entry to estimate expected future sales discounts taken. True or False Under FIFO, the most recent costs are assigned to ending inventory. True or False Installment accounts receivable is another name for aging of accounts receivable. True or False An employee earned $62,500 during the year working for an employer. The FICA tax rate for Social...

Ramon Co reported the following units of production and sales for June and July 2014:

Ramon Co reported the following units of production and sales for June and July 2014: Produced Sold June 2014 100000 90000 July 2014 100000 105000 Net income under absorption costing for June was $40000, net income under variable costing for July was $50000. fixed manufacturing costs were $600000 for each month. Ramon Co uses actual costing. How much was net income for July using absorption costing A. $50000 B $20000 C $80000 D $40000 What is the answer to this...

A company that uses the gross method of recording purchases and a perpetual inventory system made...

A company that uses the gross method of recording purchases and a perpetual inventory system made a purchase of $2,200 with terms of 2/10, n/30. The entry to record the purchase would be: Debit Merchandise Inventory $2,156; credit Accounts Payable $2,156. Debit Merchandise Inventory $2,200; credit Accounts Payable $2,200. Debit Merchandise Inventory $2,156; credit Cash for $2,156. Debit Merchandise Inventory $2,156; debit Discounts Lost $44; credit Accounts Payable $2,200. Debit Accounts Payable $2,200; credit Discounts Lost $44; credit Cash $2,156.

Retail Method; Gross Profit Method Selected data on inventory, purchases, and sales for Celebrity Tan Co....

Retail Method; Gross Profit Method Selected data on inventory, purchases, and sales for Celebrity Tan Co. and Ranchworks Co. are as follows: Cost Retail Celebrity Tan Co. Inventory, August 1 $216,000 $328,000 Transactions during August Purchases (net) 2,490,000 3,772,000 Sales 3,880,000 Ranchworks Co. Inventory, March 1 $278,000 Transactions during March through November: Purchases (net) 3,698,000 Sales 6,057,000 Estimated gross profit rate 38% Required: 1. Determine the estimated cost of the inventory of Celebrity Tan Co. on August 31 by the...

On July 1, 2014,Deng Co. pays $13200 to Nance Insurance Co. for 1 year insurance contract....

On July 1, 2014,Deng Co. pays $13200 to Nance Insurance Co. for 1 year insurance contract. Both companies have physical years ending December 31. Journalist the entry on July 1 and the adjusting entry on December 31 for Nance Insurance Co. Nance uses the accounts Unearned Service Revenue and Service Revenue.

Sheridan Company uses the percentage of sales method to record bad debt expense. It estimates that...

Sheridan Company uses the percentage of sales method to record bad debt expense. It estimates that 2% of net credit sales (all made on account) will become uncollectible. Sheridan Company reported the following information in its general ledger for the year ended September 30, 2021: Sales Debit Credit 954,000 Accounts Receivable Debit Credit 257,000 Allowance for Doubtful Accounts Debit Credit 2,000 1) Prepare the adjusting entry to record bad debt expense at year end. 2) Calculate the carrying amount of...

Subjects