Merchandise was purchased on account from Grants Distributors on June 12. The purchase price was $5,000, less
Question:
Merchandise was purchased on account from Grant’s Distributors on June 12. The purchase price was $5,000, less a 10% trade discount and credit terms of 3/10, n/30.
1. Calculate the net amount to record the invoice, less the 10% trade discount.
2. Calculate the amount to be paid on this invoice within the discount period.
3. Journalize the purchase of the merchandise on June 12 and the payment on June 22 (within the discount period) in a general journal.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 63% (11 reviews)
1 Gross amount 5000 Less 10 trade discount 500 Net amo...View the full answer
Answered By
Anthony Ngatia
I have three academic degrees i.e bachelors degree in Education(English & Literature),bachelors degree in business administration(entrepreneurship option),and masters degree in business administration(strategic management) in addition to a diploma in business management.I have spent much of my life in the academia where I have taught at high school,middle level colleges level and at university level.I have been an active academic essays writer since 2011 where I have worked with some of the most reputable essay companies based in Europe and in the US.I have over the years perfected my academic writing skills as a result of tackling numerous different assignments.I do not plagiarize and I maintain competitive quality in all the assignments that I handle.I am driven by strong work ethics and a firm conviction that I should "Do Unto others as I would Like them to do to me".
4.80+
76+ Reviews
152+ Question Solved
Related Book For
Question Posted:
Students also viewed these Accounting questions
-
Merchandise was purchased on account from Jacobs Distributors on May 17. The purchase price was $2,000, less a 10% trade discount and credit terms of 2/10, n/30. 1. Calculate the net amount to record...
-
Which of the following is an example of an agency problem? a. All of the options are examples of agency problems. b. Managers engage in empire building. c. Managers overconsume luxuries such as...
-
1. Share your thoughts on the major purposes of World Trade Organization, International Monetary Fund, and World Bank . Tell me how these three organizations are supporting global trade. Be sure to...
-
Summarize the extract given below? When Paul Farmer graduated from Duke University at 22, he was unsure whether he wanted to be an anthropologist or a doctor. So he went to Haiti. As a student, Paul...
-
Forten Company, a merchandiser, recently completed its calendar-year 2017 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from...
-
Hanigan Manufacturing (a fictional company) had 1,800,000 shares of common stock outstanding as of January 1, 20X1, and 900,000 shares of 10% noncumulative (nonconvertible) preferred stock...
-
Instead of using the computing formula on page 367, we can obtain the correlation coefficient \(r\) with the formula \[r= \pm \sqrt{1-\frac{\sum(y-\widehat{y})^{2}}{\sum(y-\bar{y})^{2}}}\] which is...
-
Oxford Company has five employees. All are paid on a monthly basis. The fiscal year of the business is June 1 to May 31. The accounts kept by Oxford Company include the following: The following...
-
Mercier Corporation's stock is selling for $78.99. It has just paid a dividend of $4.25 a share. The expected growth rate in dividends is 5.5 percent. a) What is the required rate of return on this...
-
Hoot Washington is the newly elected charismatic leader of the Western Party. He is the darling of the right-wing media. His take no prisoners attitude has left many an opponent on a talk show...
-
A flowchart showing some of the major documents commonly used in the purchasing function of a merchandise business is presented below. Briefly describe eachdocument. Purchase Requisition Receiving...
-
Using T accounts for Cash, Accounts Payable, Purchases, Purchases Returns and Allowances, Purchases Discounts, and Freight-In, enter the following purchase transactions. Identify each transaction...
-
Let In each case, find an elementary matrix E that satisfies the given equation. Is there an elementary matrix E such that EA = D? Why or why not? 2 -1 -1 B = -1 1 C = D = -3 -1 3 2 1 -1 -1 || A/
-
Is the sales tax a progressive or regressive? What are the policy actions that governments can take that change the vertical equity implications of the sales tax? Provide examples of the application...
-
What are some real-life examples of unanticipated inflation impacting the labor and financial markets?
-
Consider the market for your business Dog Boarding and Daycare. Indicate if the demand for your good or service is elastic or inelastic. Describe the specific characteristic(s) of your good or...
-
Ginny Pigg is required to take a newly developed pre-employment test designed to predict her likely degree of job success. Statistical confirmation of the ability of this test to make such a...
-
Identical bricks 0.1m wide, and weighting 2kg are placed on a plate (assume the plate has neligible weight). Calculate the total weight (and force F required to balance the plate). How far from x=0...
-
The Johnson Drafting Company was started on 1 March to draw blueprints for building contractors. The following transactions of the company occurred during March: Required: i Using the accounting...
-
14. In testing the existence assertion, an auditor ordinarily works from the a. Financial statements to the accounting records. b. General journal to the general ledger. c. Supporting evidence to the...
-
Determine convergence or divergence using any method covered in the text. 00 COS n 3/2 n=1
-
American Eagle Outfitters, Inc., specializes in high-quality trendy clothing geared toward 15-to 25-year-olds. American Eagle Outfitters has over 1,100 mall-based stores nationwide and sells a large...
-
What if you see that purchases discounts for this year are 5 percent lower than for last year? Who would you talk to about it? What is happening? How has it affected your bottom line?
-
Compare the Manufacturing Summary account with the Income Summary account.
-
A friend owes you $500 in 1 year from now, and then $1000 2 years from now. Both loans are at 5%. If you want to replace both of these loans with ONE PAYMENT NOW, how much would your friend give you ?
-
If the amount of retained earnings at the beginning of the year was $ 3 0 , 0 0 0 , and $ 1 2 , 0 0 0 in dividends is paid during the year, calculate net income for the year.
-
On January 2, 20Y4, Whitworth Company acquired 33% of the outstanding stock of Aloof Company for $330,000. For the year ended December 31, 20Y4, Aloof Company earned income of $86,000 and paid...
Study smarter with the SolutionInn App