1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
LiRa [457]
3 years ago
13

Journalize the following transactions for Powell Company using the gross method of accounting for sales discounts. Assume a perp

etual inventory system. Also, assume a constant gross profit ratio for all items sold. Make sure to enter the day for each separate transaction.January 7 Sold goods costing $7,860 to Stewart Company on account, $13,100, terms 5/10, n/30.January 13 Stewart Company was granted an allowance of $2,620 for returned merchandise that was previously purchased on account. The returned goods are in perfect condition.January 18 Received the amount due from Stewart Company. required: prepare journal entry.
Business
1 answer:
Marianna [84]3 years ago
3 0

Answer:

Jan 7

Dr Cost of Good Sold     7,860

Cr Inventory                    7,860

(to record the cost of good sold)

Dr Account Receivable          13,100

Cr Revenue                            13,100

( to record revenue and receivable owed from Stewart)

Jan 13

Dr Sales Returns                  2,620

Cr Account Receivable       2,620

(to record sales return from Stewart)

Dr Inventory                      2,620

Cr Cost of good sold       2,620

(to record inventory returns and decrease in cost of good sold due to sales return from Stewart)

Jan 18

Dr Cash                                10,480

Cr Account Receivable      10,480

( to record full collection from Stewart after 11 days)

* further working note on Jan 18 transaction: As Stewart had return $2,620 sales; the Receivable from Stewart is just $10,480 ( 13,100 - 2,620). Also, the term of receivable is 5/10, n/30; the repayment after 10 days received from Steward is not eligible for discount.

Explanation:

You might be interested in
Guns R Us overstated its ending inventory in the current year by $5,000. The company incorrectly reported $100,000 of net income
lara [203]

Answer:

B. Cost of goods sold will be too low by $5,000.

Explanation:

Given that

Ending inventory overstated in the current year by $5,000

And, the net income is incorrectly reported $100,000

So, due to this error

The cost of goods sold is understated by $5,000

And, the net income is overstated by $5,000

Since the cost of goods sold is understated by $5,000 so it would be too low due to which the net income overstated by $5,000

4 0
3 years ago
The developers of your new system have proposed two different AIS designs and have asked you to evaluate them. This evaluation p
Tamiku [17]

Answer:D - system analysis

Explanation: The system analysis stage in the System Development Life Cycle is on of the most important step. Here the security of the system is analysed to test if it will perform the function accurately without security bridge.

At this state, the security activity of the system is tested.

4 0
3 years ago
What is the term for selling related products
kupik [55]
<span>Cross-sell is the practice of selling or suggesting related or complementary products to a prospect or customer. Cross selling is one of the easiest and most effective methods of marketing.</span>
8 0
3 years ago
Read 2 more answers
stock sells for $100 rights-on, and the subscription price is $90. Ten rights are required to purchase one share. Tomorrow the s
m_a_m_a [10]

Answer:

$99.09

Explanation:

Calculation for What is Tricki's expected price when it begins trading ex-rights

Using this formula

Expected price=Stock rights-on- [ (Stock rights-on-Subscription price)÷(10 rights+ One share)]

Let plug in the formula

Expected price=$100-[($100-$90)÷(10+1)]

Expected price=$100-($10÷11)

Expected price=$100-$0.91

Expected price=$99.09

Therefore Tricki's expected price when it begins trading ex-rights will be $99.09

3 0
3 years ago
A company declared and paid a cash dividend. The dividend would appear on the company's statement of cash flows as: Select one:
Kisachek [45]

Answer:

d. a deduction under financing activities.

Explanation:

As if the company declared and paid the cash dividend so the same is to be considered in the financing activities of the cash flow statement.

This amount should be shown in the negative amount as it decreases the cash that means it is an outflow of cash

Hence, the correct option is d. and the same is to be considered

3 0
2 years ago
Other questions:
  • Suddeth Corporation has entered into a 6 year lease for a building it will use as a warehouse. The annual payment under the leas
    5·1 answer
  • Assets = liabilities + owners' equity is the equation for information reported on the
    14·1 answer
  • A company ages its accounts receivables to determine its end of period adjustment for bad debts. at the end of the current year,
    14·2 answers
  • Which of the following are correct concerning customer background and financial information, according to options exchange rules
    13·1 answer
  • Dane works as a sales representative for the Better Butter Company. He is about to meet with his manager to review his progress
    13·2 answers
  • Cheng builds replica miniature cabinets. His costs for each cabinet are $32 each. A consultant tells Cheng that the average marg
    14·1 answer
  • A career plan should include all of the following EXCEPT:
    11·2 answers
  • Panuto: Buuinangmgasalita. Punan ng tamang letra ang bawat kahonupangmabuoangtamangsalita.Isulatangsagotsaiyongsagutangpapel.
    13·1 answer
  • Conservative Bank offers loans at various interest rates, depending on the nature of the loan. Jake wants to borrow $200,000 for
    10·1 answer
  • What do it feel like working at footlocker?
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!