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3 years ago

The following transactions are for Kingbird Company.

Business

1 answer:

Llana [10]3 years ago

5 0

Answer:

a. The journal entries to record the transactions woule be the following:

To record the sales

3 dec Debit Credit

Account receivables $473,800

Sales $473,800

To record the cost of goods sold

cost of goods sold $320,000

Merchandise Inventory $320,000

To record the allowance

8 dec Debit Credit

Sales return and allowance $22,800

Accounts receivable $22,800

To record the cash received from the customer

13 dec Debit Credit

Cash $446,490

Sales discount $4,510

Accounts receivable $451,000

Explanation:

a. The journal entries to record the transactions woule be the following:

First we have to prepare the journal entry to record the sales and cost of goods sold according to the given data:

To record the sales

3 dec Debit Credit

Account receivables $473,800

Sales $473,800

To record the cost of goods sold

cost of goods sold $320,000

Merchandise Inventory $320,000

Next we have to Prepare the journal entry to record the allowance as follows:

To record the allowance

8 dec Debit Credit

Sales return and allowance $22,800

Accounts receivable $22,800

Finally we have to Prepare the journal entry to record the cash received from the customer as follows:

To record the cash received from the customer

13 dec Debit Credit

Cash $446,490

Sales discount $4,510

Accounts receivable $451,000

Cash=$451,000-$4,510=$446,490

Sales discount=$451,000*1%=$4,510

Accounts receivable=$473,800- $22,800=$451,000

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Read 2 more answers

A produce distributor uses 774 packing crates a month, which it purchases at a cost of $12 each. The manager has assigned an ann

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Answer:

$444.42

Explanation:

For computing the saving amount, first need to calculate the economic order quantity, total cost etc

The economic order quantity is

$= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}$

where,

Annual demand is

= 774 packaging crates × 12 months

= 9,932 crates

And, the carrying cost is

= $12 × 34%

= $4.08

$= \sqrt{\frac{2\times \text{9,288}\times \text{\$29}}{\text{\$4.08}}}$

= 363.37 crates

Now the total cost is

= Annual ordering cost + Annual carrying cost

= Annual demand ÷ Economic order quantity × ordering cost per order + Economic order quantity ÷ 2 × carrying cost per unit

= 9,288 ÷ 363 × $29 + 363 ÷ 2 × $4.08

= $742.02 + $740.52

= $1,482.54

Now the total cost in case of 774 packing crates is

= Annual ordering cost + Annual carrying cost

= Annual demand ÷ Economic order quantity × ordering cost per order + Economic order quantity ÷ 2 × carrying cost per unit

= 9,288 ÷ 774 × $29 + 774 ÷ 2 × $4.08

= $348 + $1,578.96

= $1,926.96

So, the annual saving cost is

= $1,926.96 - $1,482.54

= $444.42

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