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Need help with E6-4 from Financial Accounting LIbby Libby Hodge. Explanations would be nice. The following transactions were selected from among those completed by Cadence
Need help with E6-4 from Financial Accounting LIbby Libby Hodge. Explanations would be nice.
The following transactions were selected from among those completed by Cadence Retailers in November and December: Nov 20 Sold 20 items of merchandise to Customer B at an invoice price of $5, 500(total0; terms 3/10, n/30. 25 Sold two items of merchandise to Customer C. who charged the $400 sates pike on hat Visa credit card. Visa charges Cadence Retailers a 2 percent credit card fee. 28 Sold 10 identical items of merchandise to Customer D at an invoice price of $9,000 (total);terms 3/10. n/30. 29 Customer D returned one of the items purchased on the 28th; the item was defective, and credit was given to the customer. Dec. 6 Customer D paid the account balance in full. 20 Customer B paid in full for the invoice of November 20.2013. Required: Assume that Sales Returns and Allowances, Sales Discounts, and Credit Card Discounts are treated as contra-revenues: compute net sales for the two months ended December 31. Determining the Effects of Credit Sales, Sales Discounts, Credit Card Sales, and Sales Returns and Allowances on Income Statement Categories Brazen Shoe Company records Sales Returns and Allowances, Sales Discounts, and Credit Card Discounts as contra-revenues. Complete the following tabulation, indicating the effect (+ for increase. - for decrease, and NE for no effect) and amount of the effects of each transaction, including related cost of goods sold. July 12 Sold merchandise to customer at factory store who charged the $300 purchase on her American Express card. American Express charges a 1 percent credit card fee. Cost of goods sold was $175. July 15 Sold merchandise to Customer T at an invoice price of $5,000; terms 3/10. n/30. Cost of goods sold was $2, 500. July 20 Collected cash due from Customer T. July 21 Before paying for the order, a customer returned shoes with an invoice price of $1,000. And cost of goods sold was $600. Evaluating the Annual Interest Rate Implicit in a Sales Discount with Discussion of Management choice of Financing Strategy Clark's Landscaping bills customers subject to terms 3/10. n/50Step by Step Solution
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