Affectionate Company sold merchandise on account for P500,000. The terms are 3/10, n/30. The related freight charge amounted to P10,000. The account was collected within the discount period. Required: Prepare journal entries to record the transactions under the following freight terms: FOB destination and freight collect FOB Destination and freight prepaid FOB Shipping point and freight collect 4. FOB Shipping point and freight prepaid

Affectionate Company sold merchandise on account for P500,000. The terms are 3/10, n/30. The related freight charge amounted to P10,000. The account was collected within the discount period. Required: Prepare journal entries to record the transactions under the following freight terms: FOB destination and freight collect FOB Destination and freight prepaid FOB Shipping point and freight collect 4. FOB Shipping point and freight prepaid

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 37E: Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following...

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Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following transactions: a. Made credit sales of $825,000. The cost of the merchandise sold was $560,000. b. Collected accounts receivable in the amount of $752,600. c. Purchased goods on credit in the amount of $574,300. d. Paid accounts payable in the amount of $536,200. Required: Prepare the journal entries necessary to record the transactions. Indicate whether each transaction increased cash, decreased cash, or had no effect on cash.
The debits and credits from four related transactions, (1) through (4), are presented in the following T accounts. Assume that the freight terms were FOB ship credit terms were 1/10, n/30. (2) (4) Inventory (3) Feedback Cash 13,860 150 150 (1) (2) a. Describe each transaction. 1. Purchased merchandise on account net of discount. 2. Paid freight. ✓ 3. An allowance for return of merchandise was granted by the creditor. 4. Paid the balance due within the discount period. 11,880 1,980 (3) (4) ✓ ✓ b. Determine the invoice amount of the merchandise that was returned in (3). X 4 Accounts Payable 1,980 (1) 11,880 ✓ 13,860 Check My Work Find the debit and credit(s) for each transaction and then consider the cause of each. Keep in mind that these are the records of a purchaser.
Using T accounts for Cash, Accounts Payable, Purchases, Purchases Returns and Allowances, Purchases Discounts, and Freight-In, enter the following purchase transactions. Identify each transaction with its corresponding letter. Use a new set of T accounts for each set of transactions. Purchase of merchandise with freight-in. a) Merchandise is purchased on account, $2,800 plus freight charges of $100. Terms of the sale were FOB shipping point. b) Payment is made for the cost of merchandise and the freight charge.
Details of a purchase invoice and related credit memo are summarized as follows: Invoice: Cost of merchandise listed on purchase invoice $6,500 Prepaid freight charge added to invoice 150 Terms, FOB shipping point, 1/10, n/eom $1,500 Credit memo: Cost of merchandise returned Assume that the credit memo was received prior to payment and that the invoice is paid within the discount period. Determine the following: (a) Amount of the cash discount allowed. (b) Amount to be paid by the purchaser if the discount is taken. (c) Cost of the merchandise to the purchaser if the discount is NOT taken.
Determine the amount to be paid in full settlement of each invoice, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Merchandise Freight Paidby Seller Freight Terms Returns andAllowances a. $13,200 $215 FOB Shipping Point, 1/10, net 30 $1,300 b. $10,400 $56 FOB Destination, 2/10, net 45 $2,300
An invoice received included the following information: merchandise price, $3,800; terms 1/10, n/eom; FOB shipping point with prepaid freight of $592. Assuming that a credit for merchandise returned of $800 is granted prior to payment and that the invoice is paid within the discount period, what amount of cash should be paid by the buyer? a. $3,800 b. $3,562 c. $4,348 d. $800
Determine the amount to be paid in full settlement of each invoice, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Merchandise Freight Paidby Seller Freight Terms Returns andAllowances a. $10,800 $276 FOB Shipping Point, 1/10, net 30 $1,100 b. $12,700 $82 FOB Destination, 2/10, net 45 $2,800 a. $fill in the blank 1 b. $fill in the blank 2
Determine the amount to be paid in full settlement of each invoice, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Freight Paid Merchandise by Seller Freight Terms Returns and Allowances a. $4,500 b. $7,650 $140 $200 FOB Shipping Point, 2/10, net 30 $1,200 FOB Destination, 1/10, net 45 $450 a. $ b. $
Merchandise is sold on account to a customer for $13,600, terms FOB shipping point, 2/10, n/30. The seller paid the freight of $510. a. Determine the amount of the sale.$fill in the blank 1 b. Determine the increase to Accounts Receivable.$fill in the blank 2 c. Determine the amount of the discount for early payment.$fill in the blank 3 d. Determine the amount due within the discount period.$fill in the blank 4
Details of invoices for purchases of merchandise are as follows: Invoice Merchandise Freight Freight Terms Returns andAllowances Invoice A $2,800 $45 FOB shipping point, 1/10, n/30 $200 InvoiceB 7,600 60 FOB destination, n/30 800 Invoice C 1,400 55 FOB shipping point, 2/10, n/30 600 Invoice D 500 50 FOB destination, 1/10, n/30 0 What will be the total amount collected on all four invoices, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period.
Freight Terms Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Merchandise FreightPaid by Seller Freight Terms Returns andAllowances a. $36,000 800 FOB destination, 1/10, n/30 $4,000 b. 44,900 375 FOB shipping point, 2/10, n/30 2,400
Determine the amount to be paid in full settlement of each invoice, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Freight Paid Returns and Merchandise by Seller Freight Terms Allowances a. $11,000 $266 FOB Shipping Point, 1/10, net 30 $1,100 $14,000 $65 FOB Destination, 2/10, net 45 $3,100 a. b. %24 %24 b.