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Exercise 8-11 (Algo) Trade and purchase discounts; the grossmethod and the net method compared [LO8-3]...
Exercise 8-11 (Algo) Trade and purchase discounts; the gross method and the net method compared [LO8-3] [The following information applies to the questions displayed below.]
Tracy Company, a manufacturer of air conditioners, sold 140 units to Thomas Company on November 17, 2021. The units have a list price of $450 each, but Thomas was given a 20% trade discount. The terms of the sale were 2/10, n/30. Thomas uses a perpetual inventory system.
Exercise 8-11 (Algo)
Part 3
3. Prepare the journal entries to record the purchase by Thomas on November 17 and payment on November 26, 2021 and December 15, 2021 using the net method of accounting for purchase discounts.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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Exercise 8-14 (Algo) Sales and Production Budgets [LO8-2,
LO8-3]
The marketing department of Jessi Corporation has submitted the
following sales forecast for the upcoming fiscal year (all sales
are on account):
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Budgeted unit sales
11,300
12,300
14,300
13,300
The selling price of the company’s product is $12 per unit.
Management expects to collect 75% of sales in the quarter in which
the sales are made, 20% in the following quarter, and 5%...
Hogan Company uses the net method of accounting for sales discounts. Hogan offers trade discounts to...
Hogan Company uses the net method of accounting for sales
discounts. Hogan offers trade discounts to various groups of
buyers.
On August 1, 2021, Hogan factored some accounts receivable on a
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Hogan also has some notes receivable bearing an appropriate rate of
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notes were received on October 1, 2021, and mature on September 30,
2022. Hogan’s operating cycle is less than...
Exercise 8-16 (Algo) Direct Materials and Direct Labor Budgets [LO8-4, LO8-5] The production department of Zan...
Exercise 8-16 (Algo) Direct Materials and Direct Labor Budgets
[LO8-4, LO8-5]
The production department of Zan Corporation has submitted the
following forecast of units to be produced by quarter for the
upcoming fiscal year:
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Units to be produced
7,000
10,000
9,000
8,000
In addition, 8,750 grams of raw materials inventory is on hand
at the start of the 1st Quarter and the beginning accounts payable
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Each...
Kimmel Company uses the net method of accounting for sales discounts. Kimmel also offers trade discounts...
Kimmel Company uses the net method of accounting for sales
discounts. Kimmel also offers trade discounts to various groups of
buyers.
On August 1, 2017, Kimmel sold some accounts receivable on a
without recourse basis. Kimmel incurred a finance charge.
Kimmel also has some notes receivable bearing an appropriate rate
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The notes were received on October 1, 2017, and mature on September
30, 2019. Kimmel’s operating cycle is less...
Problem 8-30 (Algo) Integration of the Sales, Production, and Direct Materials Budgets [LO8-2, LO8-3, LO8-4] Milo...
Problem 8-30 (Algo) Integration of the Sales, Production, and
Direct Materials Budgets [LO8-2, LO8-3, LO8-4]
Milo Company manufactures beach umbrellas. The company is
preparing detailed budgets for the third quarter and has assembled
the following information to assist in the budget preparation:
The Marketing Department has estimated sales as follows for the
remainder of the year (in units):
July
40,000
October
30,000
August
90,000
November
16,500
September
59,000
December
17,000
The selling price of the beach umbrellas is $11 per...
Problem 8-31 (Algo) Completing a Master Budget [LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, LO8-10] Hillyard Company, an...
Problem 8-31 (Algo) Completing a Master Budget [LO8-2, LO8-4,
LO8-7, LO8-8, LO8-9, LO8-10]
Hillyard Company, an office supplies specialty store, prepares
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first quarter:
As of December 31 (the end of the prior quarter), the company’s
general ledger showed the following account balances:
Cash
$
59,000
Accounts receivable
215,200
Inventory
60,600
Buildings and equipment (net)
369,000
Accounts payable
$...
Problem 8-27 (Algo) Cash Collections; Cash Disbursements; Budgeted Balance Sheet [LO8-2, LO8-3, LO8-4, LO8-10] Deacon Company...
Problem 8-27 (Algo) Cash Collections; Cash Disbursements;
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Deacon Company is a merchandising company that is preparing a
budget for the three-month period ended June 30th. The following
information is available
Deacon Company
Balance Sheet
March 31
Assets
Cash
$
58,200
Accounts receivable
34,800
Inventory
68,500
Buildings and equipment, net of depreciation
118,000
Total assets
$
279,500
Liabilities and Stockholders’
Equity
Accounts payable
$
95,000
Common stock
70,000
Retained earnings
114,500
Total liabilities and...
Hogan Company uses the net method of accounting for sales discounts. Hogan offers trade discounts to various groups of buyers.
Hogan Company uses the net method of accounting for sales discounts. Hogan offers trade discounts to various groups of buyers.
On August 1, 2021, Hogan factored some accounts receivable on a without recourse basis. Hogan incurred a finance charge.Hogan also has some notes receivable bearing an appropriate rate of interest. The principal and total interest are due at maturity. The notes were received on October 1, 2021, and mature on September 30, 2022. Hogan’s operating cycle is less than one...
Hogan Company uses the net method of accounting for sales discounts. Hogan offers trade discounts to various groups of buyers.
Hogan Company uses the net method of accounting for sales discounts. Hogan offers trade discounts to various groups of buyers.On August 1, 2021, Hogan factored some accounts receivable on a without recourse basis. Hogan incurred a finance charge.Hogan also has some notes receivable bearing an appropriate rate of interest. The principal and total interest are due at maturity. The notes were received on October 1, 2021, and mature on September 30, 2022. Hogan’s operating cycle is less than one...
Exercise 8-11 Cash Budget Analysis [LO8-8] A cash budget, by quarters, is given below for a...
Exercise 8-11 Cash Budget Analysis [LO8-8]
A cash budget, by quarters, is given below for a retail company
(000 omitted). The company requires a minimum cash balance of at
least $5,000 to start each quarter. Fill in the missing amounts.
(Enter your answers in thousands of dollars. Cash
deficiencies and Repayments should be indicated by a minus
sign.)
Quarter (000 omitted)
(000 omitted)
1
2
3
4
Year
Cash balance, beginning
$6
Add collections from customers
96
323
Total cash...
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