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ra1l [238]
3 years ago
7

Oriole Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2020. The goods have a sales price of $65

9,900 (cost of $460,000). The terms are net 30. If Danone pays within 5 days, however, it receives a cash discount of $9,900. Past history indicates that the cash discount will be taken. On January 28, 2020, Danone makes payment to Oriole for the full sales price.Instructions(a) Prepare the journal entry(ies) to record the sale and related cost of goods sold forJupiter Company on January 2, 2020, and the payment on January 2, 2020. Assume thatJupiter Company records the January 2, 2017, transaction using the net method.(b) Prepare the journal entry(ies) to record the sale and related cost of goods sold forJupiter Company on January 2, 2020, and the payment on January 2, 2020. Assume thatJupiter Company records the January 2, 2017, transaction using the gross metho
Business
1 answer:
labwork [276]3 years ago
6 0

Answer:

Explanation:

The journal entries are shown below:

Using net method:

1. Notes receivable A/c Dr $650,000        ($659,900 - $9,900)

      To Sales revenue A/c $650,000

(Being the sale is recorded)

2. Cost of goods sold A/c Dr  $460,000

        To Inventory A/c $460,000

(Being cost of goods sold is recorded)

3. Cash A/c Dr $659,900

       To Notes receivable  $650,000

       To Discount forfeited $9,900

(Being received payment is recorded)

Using gross method:

1. Notes receivable A/c Dr $650,000        ($659,900 - $9,900)

      To Sales revenue A/c $650,000

(Being the sale is recorded)

2. Cost of goods sold A/c Dr  $460,000

        To Inventory A/c $460,000

(Being cost of goods sold is recorded)

3. Cash A/c Dr $659,900

       To Notes receivable  $659,900

(Being received payment is recorded)

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On January 1, a company made a sale of $87,500, on credit. If the credit terms were 2/10, n/30, what would be the amount of the
worty [1.4K]

Answer:

b. $1750

Explanation:

Provided that

Sale of the company = $87,500

Credit terms = 2% if payment is received within 10 days and the prescribed time limit is 30 days

The amount of the sales discount would be

= Sale of the company × discount percentage

= $87,500 × 2%

= $1,750

We simply multiplied the sale of the company with the discount percentage so that the sales discount could come

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3 years ago
Net Zero Products, a wholesaler of sustainable raw materials. Prepared the following aging of receivables analysis.
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Answer:

Net Zero Products

a) The balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method is $4,300.

b) Adjusting Entry to record bad debt expense:

Debit Bad Debt Expense $1,700

Credit Allowance for Doubtful Accounts $1,700

To record the bad debt expense for the period and bring the allowance to $4,300 credit balance.

Explanation:

a) Data and Calculations:

Aging of receivables analysis:

Total (days)                          0        1 to 30     31 to 60     61 to 90     above 90

Accounts receivable $171,000   $96,000   $34,000     $15,000     $12,000

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Allowance for doubtful     0          $960        $1,360         $900        $1,080

Total allowance for doubtful = $4,300 (960 + 1,360 + 900 + 1,080)

b) The adjustment in the Allowance for Doubtful Accounts needed for the current period is $1,700 ($4,300 - $2,600).  This amount will be debited to the Bad Debts Expense account and credited to the Allowance for Doubtful Accounts.  It will bring the total for the Allowance for Doubtful Accounts to $4,300 from $2,600.

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3 years ago
The standard time for producing one unit of work in a job paying $12.75 per hour was set at twelve minutes. The piece rate would
aalyn [17]

Answer:

The right answer is option (A).

Explanation:

According to the scenario, given data is :

Time required for one unit = 12 Min

Payment for job =  $12.75 / Hour

So, payment for job per minute = $12.75 / 60 = $0.2125 / minute

Hence, Rate per piece = rate/minute × time required for one unit

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Hence the most appropriate answer is option (A).

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