Question

On April 2, Kelvin sold $40,000 of inventory items on credit with the terms 1/10, net...

  1. On April 2, Kelvin sold $40,000 of inventory items on credit with the terms 1/10, net 30. Payment on $24,000 sales was received on April 8 and the remaining payment on $16,000 sales was received on April 27.

(1). Assuming Kelvin uses the net method of accounting for sales discounts.

Please make journal entries on April 2, April 8, and April 27.

(2). Assuming Kelvin uses the gross method of accounting for sales discounts.

Please make journal entries on April 2, April 8, and April 27.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Thank you.

For any clarification please comment

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
Required information Exercise 8-11 (Algo) Trade and purchase discounts; the gross method and the net method...
Required information Exercise 8-11 (Algo) Trade and purchase discounts; the gross method and the net method compared [LO8-3] Skip to question [The following information applies to the questions displayed below.] Tracy Company, a manufacturer of air conditioners, sold 140 units to Thomas Company on November 17, 2021. The units have a list price of $450 each, but Thomas was given a 20% trade discount. The terms of the sale were 2/10, n/30. Thomas uses a perpetual inventory system. Exercise 8-11...
Cullumber Co. uses the gross method to record sales made on credit. On June 1, 2020,...
Cullumber Co. uses the gross method to record sales made on credit. On June 1, 2020, it made sales of $40,000 with terms 2/15, n/45. On June 12, 2020, Cullumber received full payment for the June 1 sale. Prepare the required journal entries for Cullumber Co.
17 On November 10 of the current year, Carolina Mills sold materials to a customer for...
17 On November 10 of the current year, Carolina Mills sold materials to a customer for $8,000 with credit terms 2/10, n/30. Carolina Mills uses the net method of accounting for sales discounts. What entry would Carolina Mills make on December 10, assuming the correct payment was received on that date? Multiple Choice Cash 8,000 Accounts receivable 7,840 Discounts revenue 160 Cash 8,000 Accounts receivable 7,840 Sales discounts forfeited 160 Cash 8,160 Accounts receivable 8,000 Sales discounts forfeited 160 Cash...
On November 10 of the current year, Blue Co. sold materials to a customer for $8,000...
On November 10 of the current year, Blue Co. sold materials to a customer for $8,000 with credit terms 2/10, n/30. Blue Co. uses the net method of accounting for sales discounts. What entry would Blue Co. make on December 10, assuming the correct payment was received on that date? Multiple Choice Cash 8,160 Accounts receivable 8,000 Sales discounts forfeited 160 Cash 8,000 Accounts receivable 7,840 Sales discounts forfeited 160 Cash 8,000 Accounts receivable 8,000 Cash 8,000 Accounts receivable 7,840...
Company X sold merchandise for $50,000 with terms 3/30, n/90 on January 1. On January 29,...
Company X sold merchandise for $50,000 with terms 3/30, n/90 on January 1. On January 29, Company X received half the payment in cash. On March 1, they received the remaining half. Prepare the journal entries to record the sale and the receipt of cash under (1) the gross method and (2) the net method. What effect does using the gross method v s. the net method have on the company urrent ratio after the sale? After the receipt of...
E7-5 (L02) EXCEL (Recording Sales Gross and Net) On June 3, Arnold Company sold to Chester...
E7-5 (L02) EXCEL (Recording Sales Gross and Net) On June 3, Arnold Company sold to Chester Company merchandise having a sale price of $3,000 with terms of 2/10, n/60, f.o.b. shipping point. An invoice totaling $90, terms n/30, was received by Chester on June 8 from John Booth Transport Service for the freight cost. On June 12, the company received a check for the balance due from Chester Company. Instructions (a) Prepare journal entries on the Arnold Company books to...
Assume the same facts as in Part I (Sarabeth sold goods to Izzy Corp. for $100,000;...
Assume the same facts as in Part I (Sarabeth sold goods to Izzy Corp. for $100,000; Sarabeth offers the following terms related to the sale: 5/10, n/60) however now assume Sarabeth uses the net method to account for cash discounts. Please provide the appropriate journal entries Sarabeth will record below assuming the net method is used to record cash discounts. If no entry is required, please write “N/A” below **You may round your answers to the nearest dollar! **Please Show...
Tracy Company, a manufacturer of air conditioners, sold 140 units to Thomas Company on November 17,...
Tracy Company, a manufacturer of air conditioners, sold 140 units to Thomas Company on November 17, 2021. The units have a list price of $500 each, but Thomas was given a 20% trade discount. The terms of the sale were 3/10, n/30. Required: 1. Please help me make the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2021, assuming that the gross method of accounting for cash discounts is used....
Sheridan Co. uses the gross method to record sales made on credit. On June 1, 2020,...
Sheridan Co. uses the gross method to record sales made on credit. On June 1, 2020, it made sales of $55,000 with terms 4/15, n/45. On June 12, 2020, Sheridan received full payment for the June 1 sale. Prepare the required journal entries for Sheridan Co. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record...
Apr. 2 Purchased $3,600 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice...
Apr. 2 Purchased $3,600 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point. 3 Paid $202 cash for shipping charges on the April 2 purchase. 4 Returned to Lyon Company unacceptable merchandise that had an invoice price of $550. 17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise. 18 Purchased $7,900 of merchandise from Frist Corp. with credit terms...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT