1) The company purchased $13,200 of merchandise on account under terms 3/10, n/30. 2) The company...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1) The company purchased $13,200 of merchandise on account under terms 3/10, n/30. 2) The company returned $2,700 of merchandise to the supplier before payment was made. 3) The liability was paid within the discount period. 4) All of the merchandise purchased was sold for $20,400 cash. What effect will the return of merchandise to the supplier in event (2) have on Darlington's financial statements? Multiple Choice Assets and stockholders' equity decrease by $2.700. Assets and liabilities decrease by $2,619, None. It is en asset exchange transaction. Assets and liabilities decrease by $2,700. 1) The company purchased $13,200 of merchandise on account under terms 3/10, n/30. 2) The company returned $2,700 of merchandise to the supplier before payment was made. 3) The liability was paid within the discount period. 4) All of the merchandise purchased was sold for $20,400 cash. What effect will the return of merchandise to the supplier in event (2) have on Darlington's financial statements? Multiple Choice Assets and stockholders' equity decrease by $2.700. Assets and liabilities decrease by $2,619, None. It is en asset exchange transaction. Assets and liabilities decrease by $2,700.
Expert Answer:
Answer rating: 100% (QA)
1 OPTION Assets liabilities decrease by 2700 EXPLANATION The inventory is purchased t... View the full answer
Related Book For
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Posted Date:
Students also viewed these accounting questions
-
Melisa plans to launch a tech company at the beginning of 2022. Her firm is expected to earn $130,000 in cash, annually. This cash flow will take place at the end of the calendar years (i.e., 31...
-
A sale of merchandise on account for $13,750 is subject to an 8% sales tax. (a) Should the sales tax be recorded at the time of sale or when payment is received? (b) What is the amount of the sale?...
-
A sale of merchandise on account for $28,000 is subject to a 7% sales tax. (a) Should the sales tax be recorded at the time of sale or when payment is received? (b) What is the amount of the sale?...
-
Solve: [1+ log (xy)] dx + [ 1 + x/y ]dy = 0.
-
If a decrease in the price of laptops causes the demand for cell phones to increase, are laptops and cell phones substitutes or complements?
-
Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation's stock. The property transferred to the...
-
Go to the library and find a journal article in your area of interest that contains empirical data but does not contain any visual representation of them. Use the data to create a chart. Be sure to...
-
Recognizing cash flows for capital investment projects, NPV Unbreakable Manufacturing manufactures over 20,000 different products made from metal, including building materials, tools, and furniture...
-
6.17 S&W Metals, Inc. had the following information regarding its installment sales for 19A and 19B: 6.18 126 Installment sales 19A 19B $300,000 $500,000 Cost of goods sold 180,000 350,000 $120,000...
-
Debbie Gibson is considering three investment options for a small inheritance that she has just receivedstocks, bonds, and money market. The return on her investment will depend on the performance of...
-
Betty Bloome died on February 28, 20X5. The following trial balance was prepared by the executor of Betty's estate as of October 31, 20X5: As to Principal As to Income Cash--Principal $ 75,000...
-
Explain why a country would choose to import or export specific goods and services and the impact those choices have on prices, jobs and standard of living.
-
Starting in the Mediterranean and then later in the Caribbean and Brazil what Was the single most important stimulant to the development of the trans-Atlantic slave trade?
-
EZ Mining Ltd, a mining company in Fictional Country (Fictional) owns an iron ore mine. When EZ Mining first purchased the mine in 2010, they paid $10 million. At that time, EZ Mining entered into an...
-
Fly With Me Airlines has a rotating schedule of planned overhauls of its aircraft. A major overhaul of the aircraft fleet is performed every five years and costs $560000 per aircraft. Fly With Me has...
-
Use the natural rate property of our Phillips curve to explain why the unemployment rate cannot be below the natural rate year after year.
-
When you clean the data in a DataFrame, you first examine the data to see what needs to be done. Then, to start the cleaning process, you A drop columns that aren't needed, rename columns, and fix...
-
1. Using the information from Problem 16-4B, prepare a statement of cash flows for Lim Garden Supplies Inc. using the direct method of presenting cash flows from operating activities. 2. How does Lim...
-
In a job order cost system, direct labor and factory overhead applied are debited to individual jobs. How are these items treated in a process cost system and why?
-
The actual cash received from cash sales was $11,279, and the amount indicated by the cash register total was $11,256. Journalize the entry to record the cash receipts and cash sales.
-
The following purchase transactions occurred during May for Amy's Catering Service: May 11. Purchased party supplies for $420, on account from Party Zone Supplies Inc. 19. Purchased party supplies...
-
True or False. The Rayleigh-Ritz method assumes that the solution is a series of functions that satisfy the boundary conditions of the problem.
-
Free end a. Bending moment \(=0\); shear force equals the b. Deflection \(=0\); slope \(=0\) c. Deflection \(=0\); bending moment \(=0\) d. Bending moment \(=0\); shear force \(=0\)
-
The boundary condition corresponding to the free end of a bar in longitudinal vibration is given by a. \(u(0, t)=0\) b. \(\frac{\partial u}{\partial x}(0, t)=0\) c. \(A E \frac{\partial u}{\partial...
Study smarter with the SolutionInn App