Question
You are an accounts receivable analyst for Amazing Nature, a manufacturer of camping and outdoor gear. The fiscal year ends on 12/31, and you received
You are an accounts receivable analyst for Amazing Nature, a manufacturer of camping and outdoor gear. The fiscal year ends on 12/31, and you received information about a number of scenarios, including dates. For each scenario, answer these questions:
What type of payment method is being used (e.g., credit, cash, advance payment)? What type of customer is buying products (B2B or B2C)? Which journal entries reflect the input into the AIS from these transactions during the second quarter? Note: journal entries for each scenario, including accounts debited and credited including the related $ amounts, too.
Scenarios: 1. On April 3, ShopCo orders $18,500 worth of products. The cost of goods sold is $14,500. ShopCo is a new customer, and the terms of the sale are a 3% discount if paid with 10 days, otherwise full payment in 30 days. The product is shipped on April 12 and delivered on April 14. Payment for the product in the amount of $17,945 is received on April 16.
2. On April 5, Walmart orders $118,600 worth of products. The cost of goods sold is $84,450. Walmart pays the invoice when the products are ordered. The product is shipped on April 13 and delivered on April 14.
3. On April 12, Michelle ODanre orders $125 worth of products in the retail store. The cost of goods sold is $75. Michelle receives and pays for the product in the store.
4. On April 18, Kroger orders $40,250 worth of products. The cost of goods sold is $29,125. The terms of the sale are net 30. The product is shipped on April 22 and delivered on April 24, and payment in the amount $40,250 is received on May 14.
5. On June 27, Target orders $94,200 worth of products. The cost of goods sold is $71,560. The terms of the sale are net 30. The product is shipped on July 1 and delivered on July 2, and payment for the product in the amount $94,200 is received on July 5.
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