Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Griffin Shoe Company records Sales Returns and Allowances, Sales Discounts, and Credit Card Discounts as contra revenues. July 12 Sold merchandise to customer at factory

image text in transcribed
image text in transcribed
image text in transcribed
Griffin Shoe Company records Sales Returns and Allowances, Sales Discounts, and Credit Card Discounts as contra revenues. July 12 Sold merchandise to customer at factory store who charged the $700 purchase on her American Express card. American Express charges a 1 percent credit card fee. Cost of goods sold was $575. July 15 Sold merchandise to Customer T at an invoice pri of 54,800; terms 1/10, n/30. Cost of goods sold was $2,400. July 20 Collected cash due from Customer T. July 21 Before paying for the order, a customer returned shoes with an invoice price of $1,300; cost of goods sold was $780. Complete the following table by entering the amounts of the effects of each transaction, including the related cost of goods sold. (Indicate decreases with a minus sign.) Transaction Net Sales Cost of Goods Sold Gross Profit July 12 July 15 July 20 July 21 7 The following transactions were selected from the records of OceanView Company: July 12 Sold merchandise to Customer R, who charged the $4,7ee purchase on his Visa credit card. Visa charges Oceanview a 3 percent credit card fee. 15 Sold merchandise to Customer s at an invoice price of $10,800; terms 3/10, n/30. 20 Sold merchandise to Customer T at an invoice price of $5,100; terms 3/10, n/3e. 23 Collected payment from Customer s from July 15 sale. Aug. 25 Collected payment from Customer T from July 20 sale. Required: Assuming that Sales Discounts and Credit Card Discounts are treated as contra-revenues, compute net sales for the two months ended August 31. Net sales The following transactions were selected from among those completed by Bennett Retailers in November and December: 0 0 Nov. 20 Sold 20 items of merchandise to Customer B at an invoice price of $5,600 (total); terms 3/10, n/30. 25 Sold two items of merchandise to Customer C, who charged the $500 (total) card. Visa charges Bennett Retailers a 3 percent credit card fee. 28 Sold 10 identical items of merchandise to Customer D at an invoice price n/3e. 29 Customer returned one of the items purchased on the 28th; the item the customer. Dec. 6 Customer D paid the account balance in full. 20 Customer B paid in full for the invoice of November 2e. 0 0 Required: Assume that Sales Returns and Allowances, Sales Discounts, and Credit Card Discounts are treated as revenues; compute net sales for the two months ended December 31. (Do not round your intermediate Round your answer to the nearest whole dollar amount.) Net sales

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Police Auditing Standards And Applications

Authors: Allan Y. Jiao

2nd Edition

0398090750, 978-0398090753

More Books

Students also viewed these Accounting questions

Question

Why could the Robert Bosch approach make sense to the company?

Answered: 1 week ago