Manual Company sells goods to Nolan Company during 2012. It offers Nolan the following rebates based on total sales to Nolan.

Manual Company sells goods to Nolan Company during 2012. It offers Nolan the following rebates based on total sales to Nolan. If total sales to Nolan are 10,000 units, it will grant a rebate of 2%. If it sells up to 20,000 units, it will grant a rebate of 4%. If it sells up to 30,000 units, it will grant a rebate of 6%. In the first quarter of the year, Manual sells 11,000 units to Nolan at a sales price of $110,000. Manual, based on past experience, has sold over 40,000 units to Nolan and these sales normally take place in the third quarter of the year. Prepare the journal entry to record the sale of the 11,000 units in the first quarter of the year.

Expert Solution

Computation of the Journal Entry to record the sales of the 11,000 unit

Given information

Sales in units 11,000

Sales worth is $110,000

Rebates are = 2% and 4% in total = 6% these value will not record in journal entries

So sold worth of 94%

Journal Entry would be

Accounts Receivable.............................................................. 103,400

Sales Revenue ($110,000 X 94%)............................................. 103,400

Account Title	Debit	Credit
Accounts Receivable	103,400
Sales Revenue		103,400

Renze Joy Candido answered 2 years ago

Metlock Company sells goods to Bonita Company during 2017. It offers Bonita the following rebates based...

Metlock Company sells goods to Bonita Company during 2017. It offers Bonita the following rebates based on total sales to Bonita. If total sales to Bonita are 9,500 units, it will grant a rebate of 2%. If it sells up to 20,500 units, it will grant a rebate of 5%. If it sells up to 27,400 units, it will grant a rebate of 6%. In the first quarter of the year, Metlock sells 11,300 units to Bonita at a sales...

A company sells a product for a retail price of $100. It offers quantity discounts based...

A company sells a product for a retail price of $100. It offers quantity discounts based on the table below Quantity Discount 10-19 10% 20-49 20% 50-99 30% 100 or more 40% Write a program that asks user for enter the quantity of product they want to purchase. It should then display the discount amount (if any) and the total purchase amount after the discount. The output should be displayed with 2 decimal points as shown below. See a sample...

1. Rebates and discounts On March 1, Martin Company sold and delivered goods to Shannon Inc....

1. Rebates and discounts On March 1, Martin Company sold and delivered goods to Shannon Inc. for $300,000 on account. Shannon Company has been a customer for more than 10 years and has earned a 3% rebate on the overall purchase. Prepare the journal entry to recognize revenue. The journal entry for the cost of goods sold is not required. 2. Commissions, consignee/agent perspective Royal vacations, a high-end vacation agent, sells tickets for all-inclusive European vacations to various customers. The...

US Auto Company would like to offer rebates to its customers in order to increase sales....

US Auto Company would like to offer rebates to its customers in order to increase sales. If it lowers prices sales will increase. This will depend on the price elasticity of demand. Assume that the price elasticity of demand is 1.5. This firm is considering a $400 rebate on its cars. Also assume the following information on prices and costs before the rebates: Average price per car $9,000 per car Expected sales volume at $9,000) per car 1,000,000...

Warranties Focus plc offers a twelve month warranty on certain goods that it sells. The warranty...

Warranties Focus plc offers a twelve month warranty on certain goods that it sells. The warranty is paid for at the time the sale is made and included in the Sales Revenues account. The full warranty is valued at 10% of the original sale price of the item and about half of the warranty cover has elapsed by the year end. The total on the Sales Revenue account at the year end stands at £10m. The accountant proposes putting the...

Part A. Suppose that ABC had the following sales growth: Sales in 2012: $0.6M; Sales in...

Part A. Suppose that ABC had the following sales growth: Sales in 2012: $0.6M; Sales in 2013: $20M; Sales in 2014: $50M; Sales in 2015: $100M; Sales in 2016: $55M; settling to a constant growth rate of 2% forever. Thanks to its business model, the company has no inventory or accounts receivables. It books and collects 100% of all sales initially but needs to pay 70% of all sales to the creative entrepreneurs 60 days after the sale. Suppose ABC...

Jordan Company, which sells electric razors, had $370,000 of cost of goods sold during the month...

Jordan Company, which sells electric razors, had $370,000 of cost of goods sold during the month of June. The company projects a 7 percent increase in cost of goods sold during July. The inventory balance as of June 30 is $29,000, and the desired ending inventory balance for July is $30,000. Jordan pays cash to settle 75 percent of its purchases on account during the month of purchase and pays the remaining 25 percent in the month following the purchase....

The following is the information related to the movement of the goods at Al-Silasil Company during...

The following is the information related to the movement of the goods at Al-Silasil Company during the month of July 2011: Number of units 100 / 400 /200 /300 /500 Total 1500 Unit price 4/6/7/10/12 Total cost 400/2400 /1400 /3000 /6000 and upon inventory it is clear that there are 600 units not sold at the end of July 2011. Required: Determine the cost of goods at the end of the period, and the cost of sales according to 1....

. A company purchased and installed a machine on January 1, 2012, at a total cost...

. A company purchased and installed a machine on January 1, 2012, at a total cost of $108,500. Straight-line depreciation was calculated based on the assumption of a seven-year life and no salvage value. The machine was disposed of on April 1, 2016. (25 Points) a. Prepare the general journal entry to update depreciation to April 1, 2016. b. Prepare the general journal entry to record the disposal of the machine under each of these three independent situations: (1) The...

During 2014, Eagle Beach Company EBC) had sales of $1,000,000, cost of goods sold of $425,000,...

During 2014, Eagle Beach Company EBC) had sales of $1,000,000, cost of goods sold of $425,000, administrative and selling expenses of $95,000, depreciation expense of $140,000 and interest expense of $70,000. The tax rate is 35 percent. Ignore any tax loss carryback or carry forward provisions. What is the operating cash flow for EBC? A. $340,000 B.$385,500 C.$361,000

Question