Sarah is an agent of company (IMP), and she signed a contract on behalf of company (IMP), but in her own name, with company (EXP), for the import of 80 tons of sugar for 100,000 AED. After delivery of the sugar, Company (IMP) only paid 80,000 AED of the total price. Explain from whom company (EXP) can claim the remaining price. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).

Sarah is an agent of company (IMP), and she signed a contract on behalf of company (IMP), but in her own name, with company (EXP), for the import of 80 tons of sugar for 100,000 AED. After delivery of the sugar, Company (IMP) only paid 80,000 AED of the total price. Explain from whom company (EXP) can claim the remaining price. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

FDN Company sold goods to a customer with terms 3/10, 2/20 n/30, FOB Shipping Point amounting to P250,000 on April 3. On April 8, the customer found out that P20,000 worth of goods have a manufacturing defect and returned it. The cost of shipping is P20,000. On April 10, the company made a half partial payment and the account was finally settled in full on April 20. How much is the Net Sales from this transaction?
From July 1 to August 30, 2020, Busy Beaver Ltd. completed the following transactions:On July 1, Busy Beaver sold 40 computers at a unit price of $3,000 to Heintoch Corp., terms1/15, n/30. Average cost for these computers was $1,500. Busy Beaver also paid the freightcosts of $3,200 cash. On July 5, Heintoch Corp. returned for full credit three damagedcomputers from the July 1 shipment. These were not returned to inventory. Heintoch agreedto pay the $240 freight cost to return the computers to Busy Beaver. On July 10, Busy Beaverreceived payment from Heintoch for the full amount owed from the July transactions. On July14, Busy Beaver purchased 50 computers on account from Correl Computers Ltd. for $1,500per unit plus freight for $4,000. On July 17, Busy Beaver sold $224,000 in computers andperipherals to Perkins Store, terms 1.5/10, n/30. Cost for these computers was $112,000. OnJuly 26, Perkins Store paid Busy Beaver for half of its July purchases. On August 30, PerkinsStore paid Busy…
Galicia, a A5 Wagyu supplier, sold 100 40x2 containers of A5 Wagyu to Andalusia who promised to pay once he has sold all the wagyu. Andalusia meantime delivered the goods to Balearic, a warehouseman, who issued a warehouse receipt. Without the knowledge of Galicia and Balearic, Andalusia negotiated the receipt to Basque who acquired it in good faith and for value. Basque then claimed the goods from Balearic, who released them. After the wagyu were loaded on a ship bound for Manila, Galicia invokes his right to stop the goods in transit due to his unpaid lien. Who has a better right to the rice? a. Basque, since he has superior rights as a purchaser for value and in good faith. b. Basque, regardless of whether or not he is a purchaser for value and in good faith. c. Galicia, since as an unpaid seller, he has the right of stoppage in transitu. d. Balearic, since it appears that the warehouse charges have not been paid.
Isabel Company is a manufacturer of deodorant and sells its product through local retailers. The deodorant costs P64 to the retailer. Retailers sell the product to its customers and for each product purchased by the customer, a coupon of P20 discount is given and may be used on future purchase of the same product. Retailers are reimbursed for the discount by the manufacturer when customers redeem their coupons. During the current year, the entity sold 10,000 deodorants to local retailers at P64, each or P640,000. The entity expected. that 80% of the coupons issued will be redeemed. At year end, the entity paid the retailers P50,000 as reimbursement. Required: 1. Compute the stand-alone selling price of the rebate coupons. 2. Allocate the transaction price between the products sold and the rebate coupons. 3. Prepare journal entries for the current year.
7. On January 2018, Rahim International imported raw materials of school bags for Tk. 1,00,000 and sold it to Arif Ltd for Tk. 1,20,000. Using these materials, Arif Ltd made 150 pieces of school bags and sold it to Younus and sons, a wholesaler, for Tk. 1,70,000, Younus and Sons sold the bags to a retailer, KB International for Tk. 2,00,000. KB International sold all the bags to various customers for Tk. 2,50,000. In considered. Compute VAT in each case, each case and each stage 15% VAT is to be
Great American Oilchange (GAO) sells a combined oil change service and parts package for $40. A customer who supplies the parts (oil and filter) is charged $30 for only the service, whereas a customer who buys only the oil and filter (for do-it-yourself use) is charged $30 for the parts. The parts cost GAO $24. CP6-4 (Algo) Part 1 Required: 1. Determine the dollar amount of revenue from the oil change service versus the sale of parts for each combined oil change package. TIP: To calculate the percentage of the combined package that relates to the service, divide the stand- alone selling price of the service by the combined stand-alone selling prices of both the service and parts. Parts Service Allocated Transaction Price 234 $ 8 9 J 1/ dele
Larkspur Inc. sold $24,000 of its designer tables to Santos Furniture and Design Studios on account. Larkspur estimates that $2,900 of these sales will either be returned or an allowance will be granted. Prepare the entries when (a) Larkspur makes the sale (use the gross method), and (b) Larkspur grants an allowance of $950 when some of the tables do not meet exact specifications but still could be sold by Santos. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation Debit Credit (a) (b)
Firms usually offer their customers some form of trade credit. This allowance comes with certain terms of credit, which will affect the actual cost of asset being sold for the buyer and the seller. Consider this case: Green Moose Industries buys most of its raw materials from a single supplier. This supplier sells to Green Moose on terms of 1/10, net 30. The cost per period of the trade credit extended to Green Moose is ________(1.23%, 0.89%, 1.01%, 1.05%) (Note: Round all intermediate calculations to four decimal places, and your final answer to two decimal places.). Green Moose’s trade credit has a nominal annual cost of _______ (22.85%, 19.17%, 16.59%, 18.43%) , assuming a 365-day year. (Note: Round all intermediate calculations to four decimal places, and your final answer to two decimal places.) If Green Moose Industries’s supplier shortens its discount period to five days, this will _______ (Increase, Decrease) the cost of the trade credit.
Coby is plumber who engages Peter to buy materials on his behalf. Peter is given a limit of $1,500 on purchases that he makes on Coby’s behalf. U-Bend Pty Ltd is a wholesaler of PVC piping from whom Peter has purchased pipes before . The company was selling piping at a discount price. Peter purchase a quantity of this piping for $2,000 and arranged for delivery. Peter thought it was too good a deal to pass up, even though it was in excess of his limit of $1,500 . Coby is refusing to accept the delivery of the pipes from U- Bend Pty Ltd Under Agency Law, will Coby be bound by the purchase?
BXY Co. has a branch, and all goods are sent thereto at cost plus 25%. The accounting is done at head office.In the first year, the branch received goods from head office costing K8,000. During the year the branch sent back to head office goods at internal invoice price of K500.Some of the goods sold to customers by the branch were unsatisfactory, and the customers complained and sent the goods in question, amounting to K50, direct to head office.During the year remittances to head office were K5,000; closing cash balance at branch K1,010, and closing branch debtors K2,340. The branch deals only with goods sent from head office. There are no discounts or bad debts and no stock differences. Ignore expenses.You are required to prepare the following accounts:a) Branch Stockb) Goods sent to branchc) Branch Adjustmentd) Branch Debtorse) Branch Cash.
Gwyn Tring, trading as Clickety Clocks, imports and resells clocks. He pays for the costs of delivering the clocks from his supplier in Switzerland to his shop in Wales. He resells the clocks to other traders throughout the country, paying the costs of carriage for the consignments from his business premises to his customers. On 1 July 20X5, he had clocks in inventory valued at $17,000. During the year to 30 June 20X6 he purchased more clocks at a cost of $75,000. Carriage inwards amounted to $2,000. Sales for the year were $162,100. Other expenses of the business amounted to $56,000 excluding carriage outwards which cost $2,500. Gwyn Tring took drawings of $20,000 from the business during the course of the year. The value of the goods in inventory at the year end was $15,400. Required Prepare the income statement of Clickety Clocks for the year ended 30 June 20X6.
Fahey Company sells Stairmasters to a retailer, Physical Fitness, Inc., for $2,000,000. Fahey has a history of providing price concessions on this product if the retailer has difficulty selling the Stairmasters to customers. Fahey has experience with sales like these in the past and estimates that the maximum amount of price concessions is $300,000. Instructions a. Determine the amount of revenue that Fahey should recognize for the sale of Stairmasters to Physical Fitness, Inc. b. According to GAAP, in some situations, the amount of revenue recognized may be constrained. Explain how the accounting for the Stairmasters sales might be affected by the revenue constraint due to variable consideration or returns. c. Some believe that revenue recognition should be constrained by collectibility. Is such a view consistent with GAAP? Explain.