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2 years ago

13

Sheffield Co. uses the gross method to record sales made on credit. On July 1, 2020, it made sales of 83,000 with terms 2/10 n/3

0. On July 9, 2020, Sheffield received full payment for the July 1 sale. Prepare the required journal entries for Sheffield Co. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

1 answer:

dezoksy [38]2 years ago

8 0

Answer:

July 1

Dr r Accounts Receivable $83,000

Cr Sales Revenue $83,000

July 9

Dr Cash $81,340

Dr Sales Discount $1,660

Cr Accounts Receivable $83,000

Explanation:

Preparation of the required journal entries for Sheffield Co.

July 1

Dr r Accounts Receivable $83,000

Cr Sales Revenue $83,000

July 9

Dr Cash $81,340

[($83,000 -($83,000 *.02)]

Dr Sales Discount $1,660

($83,000-$81,340)

Cr Accounts Receivable $83,000

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2011 2015 2018

Cost $182,300 $349,000 $385,000

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<u />

Dec 31 , 2013 :

$182,300/17 = $10,724

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Explanation:

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Explanation:

To calculate the Inventory Turnover ratio it's necessary to calculate the average inventory of the year , the take the Total Cost of Goods and divide it by the Average Inventory, the result it's the Inventory Turnover of the company, in this case 2,66

To find the days in inventory we have to divide 365 (days of the year) and divide it by the Inventory Turnover, 2,66, the result is 137 days.

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