Using the information in M6-12, prepare the journal entries needed at the time of sale and collection,
Question:
M6-12
Merchandise costing $2,000 is sold for $3,000 on terms 2/10, n/30. If the buyer pays within the discount period, what amount will be reported on the income statement as net sales and as gross profit?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 33% (9 reviews)
At time of sale dr Accounts Receivable A 3000 cr Sales Revenue RSE 3000 To ...View the full answer
Answered By
Mugdha Sisodiya
My self Mugdha Sisodiya from Chhattisgarh India. I have completed my Bachelors degree in 2015 and My Master in Commerce degree in 2016. I am having expertise in Management, Cost and Finance Accounts. Further I have completed my Chartered Accountant and working as a Professional.
Since 2012 I am providing home tutions.
3.30+
2+ Reviews
10+ Question Solved
Related Book For
Fundamentals Of Financial Accounting
ISBN: 9780073527109
3rd Edition
Authors: Fred Phillips, Robert Libby, Patricia A Libby
Question Posted:
Students also viewed these Accounting questions
-
Merchandise costing $1,500 is sold for $2,000 on terms 2/10, n/30. If the buyer pays within the discount period, what amount will be reported on the income statement as net sales and as gross profit?...
-
Using the information in M6-13, calculate the gross profit percentage (rounded to one decimal place). How has Sellall performed, relative to the gross profit percentages reported for Walmart in the...
-
Using the information in M6-5, prepare journal entries to record the inventory transactions, assuming Andersons uses a perpetual inventory system. Info M6-5 Assume Andersons General Store bought, on...
-
ABC Company produces mode trains. During the month of July, it produced 4,000 trains. The actual labor hours were 8 hours per train. Its standard labor hours are 10 hours per train. The standard...
-
International Accounting Standard No. 16 provides companies the option of valuing property, plant, and equipment at either historical cost or fair value. If fair value is selected, then the property,...
-
Historical demand for a product is Demand January ............. 12 February ............. 11 March .............15 April ............. 12 May ............. 16 June ............. 15 a. Using a...
-
Write an audit programme to carry out an environmental audit in a university. The organisation has never in its history been through an environmental audit.
-
What are some of the specific problems with the output that the systems consultants and Benton Turnstile gave to Bart Rayl? Evaluate the media that are being used for output as well as the timing of...
-
Cite three ways that global HR differs from domestic HR, specifically in relation to Total Rewards. Give examples, and cite at least one source from the class. Respond to at least one colleague.?
-
Jose is the owner and manager of a successful suburban grocery store. He faces new competition from a regional chain who will open a mega-store nearby later this year. Jose needs to expand his store...
-
Merchandise costing $2,000 is sold for $3,000 on terms 2/10, n/30. If the buyer pays within the discount period, what amount will be reported on the income statement as net sales and as gross profit?
-
Using the information in M6-16, calculate the gross profit percentage for 2013. How has Sellall performed, relative to the gross profit percentages reported for Walmart in the chapter? M6-16 Sellall...
-
The quality control department at Food Town Inc., a grocery chain in upstate New York, conducts a monthly check on the comparison of scanned prices to posted prices. The chart below summarizes the...
-
The virial equation of state is \[p v=\Re T\left(\mathrm{~b}_{1}+\frac{\mathrm{b}_{2}}{v}+\frac{\mathrm{b}_{3}}{v^{2}}+\ldots . . ight)\] Compare this equation with van der Waals equation of state...
-
A vessel is filled with hydrogen and carbon dioxide in equal parts by volume and the mixture is ignited. If the initial pressure and temperature are \(2 \mathrm{bar}\) and \(60^{\circ} \mathrm{C}\)...
-
A mixture containing hydrogen and oxygen in the ratio of \(2: 1\) by volume is contained in a rigid vessel. This is ignited at \(60{ }^{\circ} \mathrm{C}\) and a pressure of \(1 \mathrm{~atm}(1.013...
-
The exhaust gas from a two-stroke cycle compression-ignition engine is exhausted at an elevated pressure into a large chamber. The gas from the chamber is subsequently expanded in a turbine. If the...
-
The following data refer to an analysis of a dual combustion cycle with a gas having specific heats varying linearly with temperature: The pressure and temperature of the gas at the end of...
-
A software training program is divided into training modules, and each module is described by module name and the approximate practice time. Each module sometimes has prerequisite modules. Model this...
-
Evaluate each logarithm to four decimal places. log 0.257
-
Julio Company wants to know if its liquidity performance has improved. Calculate the company's cash return on assets for 20x8 and 20x7 using the following data: Net cash flows from operating...
-
Davis Parts Shop uses a large amount of supplies in its business. The following table summarizes selected transaction data for supplies that Davis Parts Shop purchased: Determine the total purchases...
-
The accounts that follow are from Dale's Lawn Service, a company that maintains condominium grounds. a. Cash b. Accounts Receivable c. Supplies d. Equipment e. Accounts Payable f. Lawn Services...
-
In January 2023, Marty's Fine Pens, a business carried on as a sole proprietorship, sells a limited-edition fountain pen for $125,000. The cost of the pen is $63,000. There is a down payment of...
-
An 90000 loan is amortized by payments of $1850 at the end of every 6 months at a rate of 2% compounded monthly 1. Construct a partial amortization schedule showing the last 2 payments 2. determine...
-
Kelso's has a return on equity of 15.2 percent, a debt-equity ratio of 44 percent, a capital intensity ratio of 1.08, a current ratio of 1.25, and current assets of $138,000. What is the profit...
Study smarter with the SolutionInn App