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Nikitich [7]
3 years ago
7

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

639,100 (cost of $480,000). The terms are net 30. If Danone pays within 5 days, however, it receives a cash discount of $9,100. Past history indicates that the cash discount will be taken. On January 28, 2020, Danone makes payment to Martinez for the full sales price. (a) Prepare the journal entry(ies) to record the sale and related cost of goods sold for Martinez Company on January 2, 2020, and the payment on January 28, 2020. Assume that Martinez Company records the January 2, 2020, transaction using the net method.
Business
1 answer:
Artemon [7]3 years ago
7 0

Answer:

Martinez Company

a) Journal Entries

Jan. 2, 2020:

Debit Accounts Receivable (Danone Inc.) $630,000

Credit Cash Discounts $9,100

Credit Sales Revenue $639,100

To record the sale of goods on account,  with trade terms, 5 days $9,100, net 30.

Debit Cost of goods sold $480,000

Credit Inventory $480,000

To record the cost of goods sold.

Jan. 28, 2020:

Debit Cash $639,100

Credit Accounts Receivable (Danone Inc.) $630,000

Credit Cash Discounts $9,100

To record the full receipt of cash on account and the revision of the cash discounts not taken.

Explanation:

a) Data and Analysis:

Jan. 2, 2020:

Accounts Receivable $630,000 Cash Discounts $9,100 Sales Revenue $639,100, terms, 5 days $9,100, net 30.

Cost of goods sold $480,000 Inventory $480,000

Jan. 28, 2020:

Cash $639,100 Accounts Receivable $630,000 Cash Discounts $9,100

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5 0
1 year ago
A tax exempt municipality is considering the construction of a new municipal waste water treatment facility. Two different sites
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Answer:

The incremental benefit/cost ratio for Alt A is 2.15 and The incremental benefit/cost ratio for Alt B is 1.35

Explanation:

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For ALT A

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For ALT B

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g Price changes from year to year are not proportional, and consumers respond to these changes by altering their spending patter
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Answer:

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Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the following independe
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Answer:

The calculations are shown below.

Explanation:

The computation is shown below:

a. The price charged per unit is

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where,

Variable cost per unit is $4.56

And, the contribution margin per unit is      

Contribution margin per unit = Fixed cost ÷ Break even units  

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= $3.04 per unit

So, the price charged is  

= $4.56 + $3.04

= $7.60 per unit  

b. The variable cost per unit is

= Selling price per unit - contribution margin per unit

where,

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And, the Contribution margin per unit is

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So, the variable cost per unit is

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And, the contribution margin ratio is  

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c. The total fixed cost is

= Contribution - Net income  

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= $36,250  

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= $4.40 per unit

And,  Selling price per unit is

= $4.40 ÷ 44%

= $10 per unit  

And, Variable cost per unit is

= $10 × 56%

= $5.60 per unit  

Since the variable cost ratio is 0.56

So, we assume the sales is 0.100

And, the contribution margin ratio is 0.44

8 0
3 years ago
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