Question

Trend Company on April 1, 2019 sold to its customer, Primary Company, 400 drums of lubricating...

Trend Company on April 1, 2019 sold to its customer, Primary Company, 400 drums of lubricating oil for $40 per drum on 2/10/net 30 terms. The cost of each drum is $20. On April 5 Primary returned 20 drums to Trend for credit because its lubricating oil inventory was too high. Primary paid the total amount owing to Trend for the lubricating oil transaction on April 8. Assuming that Trend records its sales and receivable on a gross basis what entries should Trend make on April 1, April 5 and April 8 for the lubricating oil transactions?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
2a. . Depot Company on June 1, 2017 sold to Recipient Company 100 bags of cement...
2a. . Depot Company on June 1, 2017 sold to Recipient Company 100 bags of cement for $20 per bag on 2/10/net 30 terms. On June 3 Recipient returned 10 bags to Depot because the cement was not need in Recipient’s construction project. Recipient paid the total amount owing for the cement transaction on June 8. Deport records its sales at their gross value at time of initial sale. What entries should Depot make on June 1, June 3 and...
1 On December 31, 2019 (at fiscal year end), CDE Company's Allowance for Doubtful Accounts had...
1 On December 31, 2019 (at fiscal year end), CDE Company's Allowance for Doubtful Accounts had a debit balance of $1,000 on its unadjusted trial balanace.  CDE Company estimates that 10% of its  gross accounts receivable balance of $95,000 will become uncollectible. On March 31, 2020, CDECompany determined that Customer A’s account of $1200 was uncollectible. On April 8, 2020, Customer A paid the amount previously written off. Based on the facts above, prepare any journal entry or entries that would necessary...
On 1 January 2019, Entity A sold 100 units of Product X to a customer for...
On 1 January 2019, Entity A sold 100 units of Product X to a customer for $220 per unit payable on 31 December 2019. On the same date, the cash selling price of 1 unit of Product X is $200.  The customer obtained control of the product at contract inception. However, the contract permits the customer to return the product within 90 days, i.e. on or before 31 March 2019. The product is new and Entity A has no relevant historical...
On January 1, 2020, the general ledger of a Company includes the following account balances: Accounts...
On January 1, 2020, the general ledger of a Company includes the following account balances: Accounts Debit Credit Cash $ 84,000 Accounts Receivable 53,000 Allowance for Uncollectible Accounts $ 5,000 Inventory 44,000 Building 84,000 Accumulated Depreciation 24,000 Land 214,000 Accounts Payable 34,000 Notes Payable (8%, due in 3 years) 48,000 Common Stock 114,000 Retained Earnings 254,000 Totals $ 479,000 $ 479,000 The $44,000 beginning balance of inventory consists of 400 units, each costing $110. During January 2020, the following transactions...
Big Company reported the following on its December 31, 2019 balance sheet (000’s omitted): Accounts Receivable,...
Big Company reported the following on its December 31, 2019 balance sheet (000’s omitted): Accounts Receivable, net of allowance for doubtful accounts of $462                           $1,788 The company makes its adjusting entry for bad debts at the end of the year. During 2020, cash collections were $3,432. In addition, $368 in accounts receivable were written off and $3 was collected from an account written off in 2018. An aging of accounts receivable reveals the following: Age Group Amount Estimated % Uncollectible...
On May 2, 2019, HPF Vacations received its April bank statement from First City Bank and...
On May 2, 2019, HPF Vacations received its April bank statement from First City Bank and Trust. Enclosed with the bank statement, which appears below, was a debit memorandum for $310 that covered an NSF check issued by Doris Fisher, a credit customer. The firm’s checkbook contained the following information about deposits made and checks issued during April. The balance of the Cash account and the checkbook on April 30, 2019, was $3,012. DATE TRANSACTIONS April 1 Balance $ 7,099...
Kingbird, Inc. closes its books on its July 31 year-end. The company does not make entries...
Kingbird, Inc. closes its books on its July 31 year-end. The company does not make entries to accrue for interest except at its year-end. On June 30, the Notes Receivable account balance is $ 26,600. Notes Receivable include the following. Date Maker Face Value Term Maturity Date Interest Rate April 21 Coote Inc. $ 5,600 90 days July 20 8% May 25 Brady Co. 9,000 60 days July 24 10% June 30 BMG Corp. 12,000 6 months December 31 8%...
Sage Hill Inc. closes its books on its July 31 year-end. The company does not make...
Sage Hill Inc. closes its books on its July 31 year-end. The company does not make entries to accrue for interest except at its year-end. On June 30, the Notes Receivable account balance is $24,000. Notes Receivable include the following. Date Maker Face Value Term Maturity Date Interest Rate April 21 Coote Inc. $6,000 90 days July 20 8% May 25 Brady Co. 7,200 60 days July 24 10% June 30 BMG Corp. 10,800 6 months December 31 6% During...
On May 2, 2019, HPF Vacations received its April bank statement from First City Bank and...
On May 2, 2019, HPF Vacations received its April bank statement from First City Bank and Trust. Enclosed with the bank statement, which appears below, was a debit memorandum for $300 that covered an NSF check issued by Doris Fisher, a credit customer. The firm’s checkbook contained the following information about deposits made and checks issued during April. The balance of the Cash account and the checkbook on April 30, 2019, was $3,009. DATE TRANSACTIONS April 1 Balance $ 6,999...
Question B [AR1: 8 Marks] Sun Company started its operations on January 1, 2019. The following...
Question B [AR1: 8 Marks] Sun Company started its operations on January 1, 2019. The following transactions took place during the first month of operations: January 1: Sun invests $4,600,000 cash to start the business. January 3: Purchased furniture for $496,000, paying $96,000 in cash and sign a note for the remaining balance. January 7: Purchased office supplies for $20,000 on credit. January 11: Paid $44,000 cash for January rent. January 15: Paid $5,400 cash for office supplies purchased on...