Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please show a b and c On August 12, Espresso Inc. sells merchandise worth $20,000 (gross sales price) to Crescendo Inc., terms 4/10, n/30. Espresso

image text in transcribedPlease show a b and c

On August 12, Espresso Inc. sells merchandise worth $20,000 (gross sales price) to Crescendo Inc., terms 4/10, n/30. Espresso grants cash discounts on amounts paid within the discount period. Espresso estimates unrecorded returns at the end of the reporting period. Required a. Prepare Espresso's journal entries (ignoring cost of goods sold) for the following transactions under the gross method. Aug. 12 Sales of $20,000 of merchandise to Crescendo. 17 Returns and allowances of $3,000 (gross) are granted Crescendo. 19 Espresso collects $11,520 cash from Crescendo on its account. 24 Returns and allowances of $2,400 (gross) are granted Crescendo on items not yet paid for. 27 Remainder of the Crescendo account is collected in full. Sep. 12 Returns and allowances of $1,000 cash (gross) are granted Crescendo on merchandise paid for on August 19. 14 Returns and allowances of $1,000 cash (gross) are granted Crescendo on merchandise paid for on August 27. b. Prepare Espresso's journal entries (ignoring cost of goods sold) for these transactions under the net method. c. Prepare a table showing the effect on Espres pg. 8-54 , sales returns and allowances, sales discounts, sales discount forfeitures, and the net effect on revenue under both the gross method and net method (ignoring cost of goods sold)

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

The Iso 9000 Auditors Companion

Authors: Kent A. Keeney

1st Edition

0873893247, 978-0873893244

More Books

Students also viewed these Accounting questions

Question

The function s X O Even O Odd O Neither

Answered: 1 week ago

Question

Draw a picture consisting parts of monocot leaf

Answered: 1 week ago