Question

Give the journal entries: 21. On Dec. 31, 2019, a customer purchased P100,000 merchandise, 2/10, n/30....

Give the journal entries:
21. On Dec. 31, 2019, a customer purchased P100,000 merchandise, 2/10, n/30. On Dec. 31, 2019, it is
expected that the customer will pay within 10 days. Give the adjusting entry on Dec. 31, 2019.

22. Refer to no. 21. Give the journal entry upon payment of the customer within the 10-day discount period.

23. A customer purchases P1,000,000 merchandise, 2/10, n/30. The P20,000 freight related to the purchase is
paid by the customer. Give the journal entry to record the sale assuming the term of the sale is FOB Shipping
Point.

24. Refer to no. 23. Give the journal entry to record the collection within the discount period.

25. Refer to no. 23. Give the journal entry to record the sale assuming the term of the sale is FOB Destination.

26. Continuation of no. 25. Give the journal entry to record the collection within the discount period.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

21)

 31-Dec-19 Purchase A/c Dr 100000
Discount on purchase A/c Cr 2000
To Vendor Cr 98000
(Being entry passed against purchase of goods and 2% discount on payment withing 10 days)
22) Vendor A/c Dr 98000
To Cash Cr 98000

(Being payment of (8000 after discount made to vendor)
23) Party A/c Dr 120000
To sales A/c Cr 120000
(Being entry passed against sale of goodson FOB )
24) Bank A/c Dr 118000
Discount on sale Dr 2000
To customer A/c Cr
(Being amount received against sale after discount of 2000)
25) Customer A/c Dr 120000
To sales a/c Cr 120000
(Being amount received against sale )
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
On June 30, 2018, the Esquire Company sold some merchandise to a customer for $47,000 and...
On June 30, 2018, the Esquire Company sold some merchandise to a customer for $47,000 and agreed to accept as payment a noninterest-bearing note with an 8% discount rate requiring the payment of $47,000 on March 31, 2019. The 8% rate is appropriate in this situation. Esquire views the financing component of this contract as significant. Required: 1. Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods...
Santa Fe Retailing purchased merchandise “as is” (with no returns) from Mesa Wholesalers with credit terms...
Santa Fe Retailing purchased merchandise “as is” (with no returns) from Mesa Wholesalers with credit terms of 2/10, n/60 and an invoice price of $19,400. The merchandise had cost Mesa $13,231. Assume that both buyer and seller use a perpetual inventory system and the gross method. 1. Prepare entries that the buyer records for the (a) purchase, (b) cash payment within the discount period, and (c) cash payment after the discount period. 2. Prepare entries that the seller records for...
On June 30, 2016, the Esquire Company sold some merchandise to a customer for $30,000 and...
On June 30, 2016, the Esquire Company sold some merchandise to a customer for $30,000 and agreed to accept as payment a noninterest-bearing note with an 8% discount rate requiring the payment of $30,000 on March 31, 2017. The 8% rate is appropriate in this situation. Required: 1. Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), the December 31, 2016 interest accrual, and the March...
Golf World sold merchandise to Mulligans for $45,000, offering terms of 1/15, n/30. Mulligans paid for...
Golf World sold merchandise to Mulligans for $45,000, offering terms of 1/15, n/30. Mulligans paid for the merchandise within the discount period. Both companies use perpetual inventory systems. a. Prepare journal entries in the accounting records of Golf World to account for this sale and the subsequent collection. Assume the original cost of the merchandise to Golf World had been $29,250. b. Prepare journal entries in the accounting records of Mulligans to account for the purchase and subsequent payment. Mulligans...
In credit terms of 1/10, n/30, the "1" represents the   a. number of days in the...
In credit terms of 1/10, n/30, the "1" represents the   a. number of days in the discount period b. full amount of the invoice c. number of days when the entire amount is due d. percent of the cash discount Merchandise with a sales price of $500 is sold on account with term 2/10, n/30. The journal entry to record the sale would include a   a. debit to Cash for $500 b. Debit to Sales Discounts for $10 c. Credit...
Merchandise is sold on account to a customer for $12,400, terms FOB shipping point, 1/10, n/30....
Merchandise is sold on account to a customer for $12,400, terms FOB shipping point, 1/10, n/30. The seller paid the freight of $370. Determine the following: a. Journalize Warwick’s Co.'s entry to record the purchase. Merchandise Inventory Accounts Payable b. Journalize Warwick’s Co.'s entry to record the merchandise return. Accounts Payable Merchandise Inventory c. Journalize Warwick’s Co.'s entry to record the payment. Accounts Payable Cash
Oriole Company issued $640,000, 10%, 10-year bonds on December 31, 2019, for $570,000. Interest is payable...
Oriole Company issued $640,000, 10%, 10-year bonds on December 31, 2019, for $570,000. Interest is payable annually on December 31. Oriole Company uses the straight-line method to amortize bond premium or discount. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2019 Prepare the journal entry to record the payment of interest and the discount...
1. Gore Inc. sold $7,200 of merchandise on account, terms 2/10,n/30. If the customer paid the...
1. Gore Inc. sold $7,200 of merchandise on account, terms 2/10,n/30. If the customer paid the amount owed within the discount period, the entry to record the receipt of cash would include a: debit to cash of $7,200 debit to sales discount of $144 credit to accounts receivable of $144 credit to accounts payable of $7,056       2.   Cost of goods sold:             A) Is another term for sales.             B)   Is the term used for the cost of buying...
The D-Snap Corporation purchased merchandise during 2017 on credit for $700,000; terms 2/10, n/30. All of...
The D-Snap Corporation purchased merchandise during 2017 on credit for $700,000; terms 2/10, n/30. All of the gross liability except $100,000 was paid within the discount period. The remainder was paid within the 30-day term. At the end of the annual accounting period, December 31, 2017, 90% of the merchandise had been sold and 10% remained in inventory. The company uses a periodic system (a)   Assuming that the net method is used for recording purchases, prepare the entries for the...
On June 30, 2021, the Esquire Company sold merchandise to a customer and accepted a noninterest-bearing...
On June 30, 2021, the Esquire Company sold merchandise to a customer and accepted a noninterest-bearing note in exchange. The note requires payment of $40,000 on March 31, 2022. The fair value of the merchandise exchanged is $37,600. Esquire views the financing component of this contract as significant. Required: 1. Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), any December 31, 2021 interest accrual, and...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT