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mash [69]
3 years ago
13

Tracy Company, a manufacturer of air conditioners, sold 200 units to Thomas Company on November 17, 2021. The units have a list

price of $550 each, but Thomas was given a 30% trade discount. The terms of the sale were 3/10, n/30. Exercise 7-5 (Algo) Part - 1 Required: 1. Prepare 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. 2. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2021, assuming that the gross method of accounting for cash discounts is used.
Business
1 answer:
svetoff [14.1K]3 years ago
4 0

Answer:

1. November 17

Accounts receivable 77,000

Sales revenue 77,000

November 26

Dr Cash 74,690

Dr Sales Discounts 2,310

Cr Accounts receivable 77,000

2. November 17

Dr Accounts receivable 77,000

Cr Sales revenue 77,000

December 15

Dr Cash 77,000

Cr Accounts receivable 77,000

Explanation:

1. Preparation of the journal entries to record the sale on November 17 and collection on November 26, 2021

November 17

Accounts receivable 77,000

Sales revenue 77,000

[Price = 200 units * $550 *(100%-30%) = 77,000]

November 26

Dr Cash 74,690

(77,000-2,310)

Dr Sales Discounts 2,310

(77,000*3%)

Cr Accounts receivable 77,000

2.Preparation of the journal entries to record the sale on November 17 and collection on December 15, 2021,

November 17

Dr Accounts receivable 77,000

Cr Sales revenue 77,000

[Price = 200 units * $550 *(100%-30%) = 77,000]

December 15

Dr Cash 77,000

Cr Accounts receivable 77,000

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Answer:

Inventory                        $200,000    

Cash                                                      $50,000

Notes payable                                      $150,000

Explanation:

Data provided in the question:

Cost of the inventory purchased = $200,000

Amount paid in cash =  one-fourth

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For the remaining balance signed a note i.e = $200,000 - $50,000

= $150,000

Now,

This transaction will be recorded as:

Inventory                        $200,000    

Cash                                                      $50,000

Notes payable                                      $150,000

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A companys management team should give serious consideration to bidding for a private label footwear contract in a particular ge
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A company’s management team should give serious consideration in bidding for a private label footwear contract in a geographic region when the company’s production capacity in one or more geographic regions exceed or else be idle because the number of pairs of branded footwear is below full production capacity based on the company managements planned to be produce.


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To estimate the company's WACC, Marshall Inc. recently hired you as a consultant. You have obtained the following information. (
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Answer:

The correct answer is: 8.72%

Explanation:

Cost of debt K d = I (1 – t) + (-pi)/n

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(1,000 + 1,075)/2

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K e = 4.5% + 1.2(5.5%)

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3 years ago
Virtue Products Inc., a large conglomerate, procures a few component parts from external suppliers and also manufactures some of
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Answer:

C) Taper integration

Explanation:

Taper integration refers to a combination of vertical integration and market exchange. In this case the company is vertically integrating both its upstream and downstream operations.

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3 0
3 years ago
Complete these sentences to describe categories of budget expenditure items.
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A fixed expense is one for which the amount is <u>same</u>, and it should be considered <u>planning </u> other expenses.

A variable expense is one for which the amount is <u>changing</u> and it should be considered <u>saving </u> fixed  expenses.

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3 0
3 years ago
Read 2 more answers
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