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ACC 291T Wk 2 – Apply: Connect Homework (New)
Study Attempt
It’s highly recommended that you use your first attempt as a study attempt, if needed.
True or False
QS 5-4 Computing net invoice amounts LO P1
Compute the amount to be paid for each of the four separate invoices assuming that all invoices are paid within the discount period.
QS 5-8 Recording sales, returns, and discounts taken LO P2
Prepare journal entries to record each of the following sales transactions of a merchandising company. The company uses a perpetual inventory system and the gross method.
| Apr. | 1 | Sold merchandise for $3,000, with credit terms n/30; invoice dated April 1. The cost of the merchandise is $1,800. | ||
| Apr. | 4 | The customer in the April 1 sale returned $300 of merchandise for full credit. The merchandise, which had cost $180, is returned to inventory. | ||
| Apr. | 8 | Sold merchandise for $1,000, with credit terms of 1/10, n/30; invoice dated April 8. Cost of the merchandise is $700. | ||
| Apr. | 11 | Received payment for the amount due from the April 1 sale less the return on April 4. |
QS 5-8 Recording sales, returns, and discounts taken LO P2
Prepare journal entries to record each of the following sales transactions of a merchandising company. The company uses a perpetual inventory system and the gross method.
| Apr. | 1 | Sold merchandise for $3,600, with credit terms n/30; invoice dated April 1. The cost of the merchandise is $2,160. | ||
| Apr. | 4 | The customer in the April 1 sale returned $440 of merchandise for full credit. The merchandise, which had cost $264, is returned to inventory. | ||
| Apr. | 8 | Sold merchandise for $1,300, with credit terms of 1/10, n/30; invoice dated April 8. Cost of the merchandise is $910. | ||
| Apr. | 11 | Received payment for the amount due from the April 1 sale less the return on April 4. |
Required information
Use the following information for the Exercises below.
[The following information applies to the questions displayed below.]
Allied Merchandisers was organized on May 1. Macy Co. is a major customer (buyer) of Allied (seller) products.
| May | 3 | Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $10 cash per unit (for a total cost of $20,000). | ||
| 5 | Allied sold 1,500 of the units in inventory for $14 per unit (invoice total: $21,000) to Macy Co. under credit terms 2/10, n/60. The goods cost Allied $15,000. | |||
| 7 | Macy returns 125 units because they did not fit the customer’s needs (invoice amount: $1,750). Allied restores the units, which cost $1,250, to its inventory. | |||
| 8 | Macy discovers that 200 units are scuffed but are still of use and, therefore, keeps the units. Allied gives a price reduction (allowance) and credits Macy’s accounts receivable for $300 to compensate for the damage. | |||
| 15 | Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount. |
Exercise 5-4 Recording sales, sales returns, and sales allowances LO P2
Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method.
Required information
Use the following information for the Exercises below.
[The following information applies to the questions displayed below.]
Allied Merchandisers was organized on May 1. Macy Co. is a major customer (buyer) of Allied (seller) products.
| May | 3 | Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $10 cash per unit (for a total cost of $20,000). | ||
| 5 | Allied sold 1,000 of the units in inventory for $14 per unit (invoice total: $14,000) to Macy Co. under credit terms 2/10, n/60. The goods cost Allied $10,000. | |||
| 7 | Macy returns 100 units because they did not fit the customer’s needs (invoice amount: $1,400). Allied restores the units, which cost $1,000, to its inventory. | |||
| 8 | Macy discovers that 100 units are scuffed but are still of use and, therefore, keeps the units. Allied gives a price reduction (allowance) and credits Macy’s accounts receivable for $600 to compensate for the damage. | |||
| 15 | Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount. |
Exercise 5-4 Recording sales, sales returns, and sales allowances LO P2
Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method.
Exercise 5-11 Net sales computation for multiple-step income statement LO P4
A company reports the following sales-related information.
| Sales, gross | $ | 200,000 | Sales returns and allowances | $ | 16,000 | ||
| Sales discounts | 4,000 | Sales salaries expense | 10,000 | ||||
Prepare the net sales portion only of this company’s multiple-step income statement.
Exercise 5-11 Net sales computation for multiple-step income statement LO P4
A company reports the following sales-related information.
| Sales, gross | $ | 220,000 | Sales returns and allowances | $ | 15,000 | ||
| Sales discounts | 4,400 | Sales salaries expense | 10,400 | ||||