In the gross method of recording cash discounts, sales discounts are a) recorded when payment is received

Fantastic news! We've Found the answer you've been seeking!

Question:

In the gross method of recording cash discounts, sales discounts are

a) recorded when payment is received within the discount period.

b) ignored unless they are material in amount.

c) recorded at the time of sale.

d) never recorded.

Related Book For answer-question

Financial Accounting

ISBN: 978-0078111020

7th Edition

Authors: LibbyShort

See More Books

Posted Date: Feb 24, 2022 05:15 AM

See More Questions

If a company employs the gross method of recording accounts receivable from customers, then sales discounts taken should be reported as a) an item of "other expense" in the income statement. b) a...
Supplement Under the gross method of recording sales discounts discussed in this chapter, is the amount of sales discount taken recorded (a) At the time the sale is recorded or (b) At the time the...
At 30 September 20X3 the closing inventory of a company amounted to $386,400. The following items were included in this total at cost: 1 1,000 items which had cost $18 each. These items were all sold...
A certain radioactive isotope is a by - product of some nuclear reactors. Due to an explosion, a nuclear reactor experiences a massive leak of this radioactive isotope. Fortunately, the isotope has a...
At December 31, Trumpette Drapes owes $59,000 on accounts payable, plus salary payable of $15,000 and income tax payable of $13,000. Trumpette Drapes also has $270,000 of bonds payable that require...
A discount store sold plastic cups for $3.50 each and ceramic cups for $4 each. If 400 cups were sold for a total of $1, 458, how many cups of each type were sold? What was the dollar value of each...
Michael Lee is sitting in the lobby of Columbia Area Painting waiting to meet with the owner, Paul Ferguson. Michael is a salesperson for Bright Colors Paints. Hes here to speak with Paul because...
Determining and Interpreting the Effects of Transactions on Income Statement Categories and Return on Assets Avon Products, Inc., is a leading manufacturer and marketer of beauty products and related...
A simple loan with a present value of $5500 will be paid off in 5 years. If the interest rate is 7% what will the future payment be?
On January 1, 2024, Harlon Consulting entered into a three-year lease for new office space agreeing to lease payments of $5,000 in 2024, $6,000 in 2025, and $7,000 in 2026. Payments are due on...
B2: Export Subsidy Consider a hypothetical market for alpaca wool socks in Peru. Assume the domestic supply and domestic demand for sweaters are respectively given by and Qs = 10+5P QD = 100 - 4P...
Characteristics of this stage in the product lifecycle include such attributes as high expenses and little to no sales. Question 6 options: Introduction Maturity Growth Decline
There are assumptions and fundamental principles that must be comprehended in recording and reporting economic events. Explain ONE ( 1 ) assumption and TWO ( 2 ) fundamental principles of accounting.
A baseball with a mass of 137 g is thrown horizontally with a speed of 39.3 m/s (88 mi/h) at a bat. The ball is in contact with the bat for 1.00 ms and then travels straight back at a speed of 46.0...
budget can be defined as a financial plan for the future period of time. Thus, it sets out the intentions which management has for the period concerned. Required: Explain the 5 ( Five ) distinct...
A plane is traveling at 200 m/s following the arc of a vertical circle of radius R. At the top of its path, the passengers experience "weightlessness." To one significant figure, what is the value of...
Consider the project of developing an optical simulator which has 6 different tasks. The tasks and task times are provided below in the following table: Activity A. Optical Design B. System...
On August 31, 2012, the balances of the accounts appearing in the ledger of Wood Interiors Company, a furniture wholesaler, are as follows:Prepare the August 31, 2012, closing entries for Wood...
Refer to the financial statements of Urban Outfitters in Appendix C at the end of this book. Required: 1. What is the amount of net income for the most recent year? 2. What amount of revenue was...
BG Wholesalers is developing its annual financial statements at December 31, 2013. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and...
Computing and Interpreting the Current Ratio Calculate the current ratio for Sals Pizza Company at the end of 2007 and 2008, based on the following data: What does the result suggest about the...
Given the four criteria necessary for a sale to be complete, which of the following is not one of those conditions? 1. Delivery has occurred or services rendered. 2. Cash has been collected. 3. The...
What is the difference between a business and a pure charity? Between a business and a governmental agency?
Sketch the $P-V$ phase diagram for helium-4 using the sketch of the $P-T$ phase diagram in Figure 4.3. Ps P S superfluid Pe T To T FIGURE 4.3 Sketch of the P-T phase diagram for helium-4. The...

In the gross method of recording cash discounts, sales discounts are a) recorded when payment is received

Question:

Expert Answer:

If the customer wants to avail of the discount offered on sales items and ays within the discou... View the full answer

Financial Accounting

Students also viewed these accounting questions