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Yuki888 [10]
2 years ago
4

Santa Fe Retailing purchased merchandise "as is" (with no returns) from Mesa Wholesalers with credit terms of 3/10, n/60 and an

invoice price of $24,000. The merchandise had cost Mesa $16,000. Assume that both buyer and seller use a perpetual inventory system and the gross method.
Business
1 answer:
Fofino [41]2 years ago
6 0

The entries prepared recorded by the buyer and the seller is provided below.

Explanation:

1. Prepare entries that the buyer records for the (a) purchase, (b) cash payment within the discount period, and (c) cash payment after the discount period.

(a) Credit Purchase

  • Merchandise inventory = $24,000 (Debit)
  • Accounts payable = $24,000 (Credit)

(b) Cash payment within the discount period

  • Accounts payable = $24,000 (Debit)
  • Merchandise inventory = $720 (Credit)
  • Cash = $24,000 * (100% - 3%) = $23,280 (Credit)

(c) Cash payment after the discount period

  • Accounts payable = $24,000 (Debit)
  • Cash = $24,000 (Credit)

2. Prepare entries that the seller records for the (a) sale, (b) cash collection within the discount period, and (c) cash collection after the discount period.

(a) Credit sale

  • Accounts receivables = $24,000 (Debit)
  • Sales  = $24,000 (Credit)

COGS entry

  • Cost of goods sold = $16,000 (Debit)
  • Merchandise inventory = $16,000 (Credit)

(b) Cash collection within the discount period

  • Cash = $24,000 * (100% - 3%) = $23,280 (Debit)
  • Sales discount = $720 (Debit)
  • Accounts receivable = $24,000 (Credit)

(c) Cash collection after the discount period

  • Cash = $24,000 (Debit)
  • Accounts receivable = $24,000 (Credit)
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Answer/Explanation:

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8 0
2 years ago
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Jervis sells $75,000 of its accounts receivable to Northern Bank in order to obtain necessary cash. Northern Bank charges a 5% f
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Answer:

Debit cash by $71,250, factoring expense by $3,750 and credit account receivable by $75,000.

Explanation:

Step 1 of 2

Calculate the amount of factoring fee.

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​

Step 2 of 2. Journey record. Image attached.

Debit cash by $71,250, factoring expense by $3,750 and credit account receivable by $75,000.

4 0
2 years ago
Kasravi Co. had net income for 2011 of $300,000. The average number of shares outstanding for the period was 200,000 shares. The
yuradex [85]

Answer:

$1.49 per share

Explanation:

The calculation of diluted earnings per share is given below:-

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Answer:

Explanation:

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We use the given information to asses his spending on his lifestyle

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The amount spent on lifestyle = 100000 - 15000 - 2350

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2 years ago
Mr. and Mrs. Napper are interested in funding their children's college education by taking out a home equity loan in the amount
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Explanation:

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