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4 years ago

Company sell goods to customer who will pay full amount in 30 days; how to record the sale

Business

1 answer:

sp2606 [1]4 years ago

6 0

Answer:

<h2>How to record a credit sale:</h2>

The General Journal or Sales Journal (a subsidiary journal) if the volume of credit sales is on the high side can be used.

i) Using the General Journal:

Date Description Debit Credit

xxx Accounts Receivable (Marjorie Customer) $$$

Sales Revenue $$$

To record the sale of goods on credit, terms n/30.

ii) Alternatively, the Sales Journal is used:

Date Description Amount

xxx Marjorie Customer $$$

other customers $$$

Total (Accounts Receivable) $$$

Explanation:

The General Journal is an all-purpose journal, which can be used to initiate the recording of business transactions. It shows the accounts to be debited and the ones to be credited in the General Ledger.

The use of a subsidiary journal, e.g. a Sales Journal, helps to summarize the particular type of transaction for a period before the total is posted to the control account in the general ledger and the individual customer accounts in the Subsidiary Ledger.

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rr Co. adopted the dollar-value LIFO inventory method on December 31, Year 12.Farr's entire inventory constitutes a single pool.

Ghella [55]

Answer:

b. $612,000

Explanation:

Dec 31, 2013 inventory = $660,000

Value of Dec 31, 2013 inventory at base year (2012) prices = $660,000/110*100 = $600,000

The real-dollar quantity increase in inventory = ($600,000 - $480,000) = $120,000

Value of this real dollar quantity increase in inventory at Dec 31, 2013 prices= $120,000 * 110/100 = $132,000 (LIFO layer to the Dec 31, 2012 inventory)

Value of Dec 31, 2013 inventory = Dec 31, 2012 inventory + The value of LIFO layer formed

Value of Dec 31, 2013 inventory = $480,000 + $132,000

Value of Dec 31, 2013 inventory = $612,000

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3 years ago

Sufra Corporation is planning to sell 100,000 units for $3.20 per unit and will break even at this level of sales. Fixed expense

prohojiy [21]

Answer:

$2.09 per unit

Explanation:

The computation of variable expenses per unit is shown below:-

Let variable costs be $x

Contribution margin per unit = Sales - Variable costs

= $3.20 - x

At break-even,units = Fixed costs ÷ Contribution margin

100,000 = $111,000 ÷ ($3.20 - x )

100,000 × ($3.20 - x ) = $111,000

$320,000 - 100,000x = $111,000

($320,000 - $111,000) ÷ 100,000 = x

$209,000 ÷ 100,000 = x

x = $2.09 per unit

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3 years ago

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4 years ago

A company borrowed $10,000 from the bank at 5% interest. The loan has been outstanding for 45 days. Demonstrate the required adj

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Answer:

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3 years ago

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Answer: Financial Management.

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3 years ago