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damaskus [11]
3 years ago
7

Journalize the following transactions for the buyer, Brooks Company, using the gross method to account for purchase discounts. A

ssume a perpetual inventory system.
a. November 6 Purchased merchandise from Nelson Company on account, $10,000, terms 4/10, n/30. The goods are shipped FOB shipping point, freight prepaid by seller, $450.
b. November 12 Returned to Nelson Company merchandise previously purchased on account, $2,300.
c. November 16 Paid the amount due to Nelson Company.
Business
1 answer:
Scorpion4ik [409]3 years ago
8 0

Answer:

Brooks Company

Journal Entries

a. November 6:

Debit Inventory $10,000

Credit Accounts Payable (Nelson Company) $10,000

To record the purchase of goods on account, terms 4/10, n/30.

b. November 12:

Debit Accounts Payable (Nelson Company) $2,300

Credit Inventory $2,300

To record the return of goods.

c. November 16:

Debit Accounts Payable (Nelson Company) $7,700

Credit Cash Discount $308

Credit Cash Account $7,392

To record the payment of cash on account.

Explanation:

Brooks Company uses Journal entries to record its business transactions as they occur on a daily basis.  Journal entries identify the accounts to be debited and the accounts to be credited as they will appear in the general ledger.

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Cash flows<em> from investing</em> activities contain the following things and include:

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According to the given question, we are asked to state what the cash flow from investing activities contains based on the list of available choices.

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3 years ago
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Answer:

The cash balance on November 30 amounts to $155,700

Explanation:

Cash balance on November 30 = Beginning balance + Collection of cash from October sales + Collection of cash from November sales - Payments for October Purchases - Payments for November Purchases

where

Beginning balance is $13,700

Collection of cash from October sales =  October Sales × % amount collected

                                                                = $240,000 × 70%

                                                                = $168,000

Collection of cash from November sales =  November Sales × % amount collected

                                                                = $240,000 × 1.20 × 25%

                                                                = $72,000

Payments for October Purchases = October Purchases × % amount paid

                                                        = $70,000 × 65%

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Payments for November Purchases = November Purchases × % amount paid

                                                        = $150,000 × 35%

                                                        = $52,500

Putting the values in the above formula

Cash balance on November 30 = $13,700 + $168,000 + $72,000 - $45,500 - $52,500

= $155,700

4 0
3 years ago
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Answer:

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We simply applied the above formula so that the correct value could come

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