Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On May 4, 2018, Star Wars Company sold and delivered 24 custom Death Star and Taxes T-Shirts to Professor Asay for his upcoming birthday bash
On May 4, 2018, Star Wars Company sold and delivered 24 custom "Death Star and Taxes" T-Shirts to Professor Asay for his upcoming birthday bash for $12 per shirt. Professor Asay paid for the T-shirts using a credit card. The credit card company charges a 3% fee. Which of the following would be included in the May 4, 2018 Journal entry recorded by Star Wars Company to recognize revenue assoclated with this transaction? (Note: If necessary, round amounts to the nearest whole dollar.) OCR Sales Revenue $288 O DR Sales Revenue $288 OCR Sales Revenue $279 DR Sales Revenue $279 Johnson Company sold merchandise to Smith Stores for $300,000 on June 10, 2019 with terms of 2/15, n/45. Smith Stores paid Johnson Company for the merchandise on June 17, 2019. Assume the merchandise sold by Johnson Company cost them 60% of the undiscounted/original selling price to produce. What amount of GROSS PROFIT did Johnson Company earn from these transactions with Smith Stores in June 2019? $300,000 O $114,000 $117,600 $123,600 $294,000 $120,000 Hawkeye Company has provided you with the following information for 2019: Net credit sales are $155,000 for 2019 Historical percentage of credit losses is 4% Allowance for doubtful accounts has a beginning credit balance of $300 Accounts receivable has an ending balance of $62,000 Write-offs during 2019 were $1,100 What is the estimated BAD DEBT EXPENSE for 2019 using the percentage of credit sales method? $2,180 $3,580 $6,200 $5,900 $2,480 $6,500 $7,300 O $2,780
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started