Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help for accounting A company sold merchandise for $2,000 on account with credit terms 3/10, n/30. Assume the customer takes advantage of the sales

please help for accounting
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
A company sold merchandise for $2,000 on account with credit terms 3/10, n/30. Assume the customer takes advantage of the sales discount, What would the selier need to do? Credit Cash for $2,000 Debit 5 ales Discounts for 560 Debit Accounts Receivable for 51,940 Debit Cash for $2,000 Sparky Co. sold $2,200 worth of pitehforks on account to one of its customers on October 15 , with credit terms of 2/10, n/30. The inventory sold cost 5 parky Co, 5900 . To record the cost of the merchandise soid on Oetober 15 , what should Sparky Co. debit? Inventory 5900 Sales Revence for 52,200 Cost of Goods sold $900 Accounts Payable $900 When a company estimates expected future returns, which of the following options must occur? Cost of Goods Sold should increase. Sales Returns and Allowances should increase. Sales Refunds Payable should decrease. Cost of Goods Sold should be debited. A company estimates bad debt using the allowance method. They determine that the current year's ending balance in the allowance account is a crecit of $50.000. The previous period had a credit ending balance of $22,000. What should be the amount in the adjusting entry for bad debt for the current period? $28,000 550,000 572,000 522,000

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

Step: 3

blur-text-image

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

Auditing Practices A Complete Guide

Authors: Gerardus Blokdyk

2023rd Edition

1038804450, 978-1038804457

More Books

Students also viewed these Accounting questions