FACTS ds Net Nike Inc. sas 70% of its products to wholesale customers. Assume that on January 1, Footlocker places an order with Nike for 200 pairs of No Ar VaporMax Flyknit 2 women's shoes for delivery on January 31. Nike's wholesale price is $90 per pair. The retail price of the shoes charged to end customers is $190 per pair. The erms of the sale are 2/10, 30, meaning Footlocker receives a 2% cash discount if pays within 10 days of delivery Nike as a 60-day return policy for its wholesale customers Record the following sales and accounts receivable entries for Nike Inc. under both the gross and net methods of accounting for cash discounts. Do not record the cost and inventory entries REQUIRED VITY 9 NET METHOD LIABILITIES EQUITY 1. On January 31, Mike delivers the order in to Footlocker GROSS METHOD ASSETS LIABILITIES EQUITY + ASSETS - AIR 18000 2 On February 8, Footlocker sends Nike full payment GROSS METHOD ASSETS LIABILITIES EQUITY NET METHOD LIABILITIES EQUITY ASSETS cash 3. What amount of Net Sales would Nike report related to the Footlocker sale? GROSS METHOD NET METHOD CHAPTER 7 HANDOUT - ACCOUNTS RECEIVABLE | PAGE 2 4. Instead of paying inful on February 8, assume Footlocker and Nicoll payment on February 15 NET METHOD EQUITY ASSETS LIABILITIES + ASSETS GROSS METHOD LIABILITIES . EQUITY 5. I Footlocker failed to pay unth February 15, what amount of Net Sales would Nike report related to the Footlocker sale? GROSS METHOD NET METHOD 2 CHAPTER 7 HANDOUT - ACCOUNTS RECEIVABLE FACTS ds Net Nike Inc. sas 70% of its products to wholesale customers. Assume that on January 1, Footlocker places an order with Nike for 200 pairs of No Ar VaporMax Flyknit 2 women's shoes for delivery on January 31. Nike's wholesale price is $90 per pair. The retail price of the shoes charged to end customers is $190 per pair. The erms of the sale are 2/10, 30, meaning Footlocker receives a 2% cash discount if pays within 10 days of delivery Nike as a 60-day return policy for its wholesale customers Record the following sales and accounts receivable entries for Nike Inc. under both the gross and net methods of accounting for cash discounts. Do not record the cost and inventory entries REQUIRED VITY 9 NET METHOD LIABILITIES EQUITY 1. On January 31, Mike delivers the order in to Footlocker GROSS METHOD ASSETS LIABILITIES EQUITY + ASSETS - AIR 18000 2 On February 8, Footlocker sends Nike full payment GROSS METHOD ASSETS LIABILITIES EQUITY NET METHOD LIABILITIES EQUITY ASSETS cash 3. What amount of Net Sales would Nike report related to the Footlocker sale? GROSS METHOD NET METHOD CHAPTER 7 HANDOUT - ACCOUNTS RECEIVABLE | PAGE 2 4. Instead of paying inful on February 8, assume Footlocker and Nicoll payment on February 15 NET METHOD EQUITY ASSETS LIABILITIES + ASSETS GROSS METHOD LIABILITIES . EQUITY 5. I Footlocker failed to pay unth February 15, what amount of Net Sales would Nike report related to the Footlocker sale? GROSS METHOD NET METHOD 2 CHAPTER 7 HANDOUT - ACCOUNTS RECEIVABLE
