Course Content $/$ Chapter $8/$ Ch$.8$ Assignment due $3/28$

Ch$.8$ Assignment due $\frac{3}{28}$

On August $12,$ Espresso $$nc$.$ sells merchandise worth $$200,000($gross sales price$)$ to Crescendo Inc., terms $4/10,$ n$/30.$ Espresso grants cash discounts on amounts paid within the discount period. Espresso estimates unirecorded returns at the end of the reporting period. Espresso summarized the following transactions.

Aug. $12$ Sales of $$200,000$ of merchandise to Crescendo.

Aug. $17$ Returns and allowances of $$30,000($gross$)$ are granted Crescendo.

Aug. $19$ Espresso collects $$115,200$ cash from Crescendo on its account.

Aug. $24$ Returns and allowances of $$24,000($gross$)$ are granted Crescendo on items not yet paid for.

Aug. $27$ Remainder of the Crescendo account is collected in full.

Sep. $12$ Returns and allowances of $$10,000$ cash $($gross$)$ are granted Crescendo on merchandise paid for on August $19.$

Sep. $14$ Returns and allowances of $$10,000$ cash $($gross$)$ are granted Crescendo on merchandise paid for on August $27.$

Gross Method Net Method Reporting Under the Gross and Net Method

c$.$ Prepare a table showing the effect on Espresso's sales, sales returns and allowances, sales discounts, sales discount forfeitures, and the net effect on revenue under both the gross method and net method $($ignoring cost of goods sold$).$

Note: Use a negative sign $(-)$ with any amounts subtracted in the schedule.

$\backslash$table$[[$Gross Method Effect on Net Income$],[$Sales revenue,$$,],[$Sales returns and allowances,,$],[$Sales discounts,e$,],[$Net increase in revenue,$$,=$

$$