Question: The Giles Agency offers a 12 trade discount when providing
The Giles Agency offers a 12% trade discount when providing advertising services of $1,000 or more to its customers. Audrey’s Antiques decides to purchase advertising services of $3,500 (not including the trade discount), while Michael’s Motors purchases only $700 of advertising. Both services are provided on account. Record both transactions for The Giles Agency, accounting for any trade discounts.
Answer to relevant QuestionsKelly’s Jewelry reported the following amounts at the end of the year: total jewelry sales = $750,000; sales discounts = $20,000; sales returns = $50,000; sales allowances = $30,000. Compute net sales.Refer to the information in BE5–6, but now assume that the balance of Allowance for Uncollectible Accounts before adjustment is $3,000 (debit). The company still estimates future uncollectible accounts to be $15,000. What ...On October 1, 2015, Oberley Corporation loans one of its employees $40,000 and accepts a 12-month, 9% note receivable. Calculate the amount of interest revenue Oberley will recognize in 2015 and 2016. On April 25, Foreman Electric installs wiring in a new home for $3,500 on account. However, on April 27, Foreman’s electrical work does not pass inspection, and Foreman grants the customer an allowance of $600 because of ...On March 1, Terrell & Associates provides legal services to Whole Grain Bakery regarding some recent food poisoning complaints. Legal services total $11,000. In payment for the services, Whole Grain Bakery signs a 9% note ...
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