College Accounting (Book Only): A Career Approach
13th Edition
ISBN: 9781337280570
Author: Scott, Cathy J.
Publisher: South-Western College Pub
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Chapter 10, Problem 2QY
What is the entry to record the cash received on a sale of $500, credit terms 1/15, n/30, if the payment is received within the discount period?
- a. Accounts Receivable 500 DR; Cash 500 CR
- b. Cash 500 DR; Accounts Receivable 500 CR
- c. Cash 495 DR, Sales Discount 5 DR; Accounts Receivable 500 CR
- d. Accounts Receivable 500 DR; Cash 495 CR, Sales Discount 5 CR
- e. Cash 500 DR; Sales Discount 5 CR, Accounts Receivable 495 CR
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Students have asked these similar questions
The entry to record a sale of P7,500 with terms of 2/10, n/30 would include
a. Debit to sales for P7,350
b. Debit to sales Discount for P150
c. Credit to Accounts Receivable for P7,500
d. Credit to sales for P7,500
Terminology
Match each phrase with its definition.
A. Sales discount
B. Credit period
C. Discount period
D. FOB destination
E. FOB shipping point
F. Gross profit
G. Merchandise inventory
H. Purchases discount
1.
2.
3.
4.
5.
6.
7.
8.
Goods a company owns and expects to see to its customers.
Time period that can pass before a customer's full payment is due.
Seller's description of a cash discount granted to buyers in return for early
payment.
Ownership of goods is transferred when the seller delivers goods to the carrier.
Purchaser's description of a cash discount received from a supplier of goods.
Difference between net sales and the cost of goods sold.
Time period in which a cash discount is available.
Ownership of goods is transferred when delivered to the buyer's place of business.
1
Calculate the cash discount and the net amount due the transaction (in $).
(Round your answers to the nearest cent.)
Amount of
Terms of
Cash
Net
Invoice
Sale
Discount
Amount Due
$9,010.20
4/10, n/30
180.204
$ 8829.996
Chapter 10 Solutions
College Accounting (Book Only): A Career Approach
Ch. 10 - What do credit terms of 2/10, n/30 mean? 210 days...Ch. 10 - What is the entry to record the cash received on a...Ch. 10 - Prob. 3QYCh. 10 - Which of the following is not an advantage of the...Ch. 10 - Prob. 5QYCh. 10 - What is the normal balance for each of the...Ch. 10 - What does an X under the total of a special...Ch. 10 - Prob. 3DQCh. 10 - In a cash receipts journal, both the Accounts...Ch. 10 - If a cash payments journal is supposed to save...
Ch. 10 - Describe the posting procedure for a cash payments...Ch. 10 - Prob. 7DQCh. 10 - Prob. 8DQCh. 10 - For the following purchases of merchandise,...Ch. 10 - Describe the transactions recorded in the...Ch. 10 - Describe the transactions recorded in the...Ch. 10 - Record the following transactions in general...Ch. 10 - Prob. 5ECh. 10 - Record general journal entries to correct the...Ch. 10 - Label the blanks in the column heads as either...Ch. 10 - Prob. 8ECh. 10 - Prob. 9ECh. 10 - Indicate the journal in which each of the...Ch. 10 - The following transactions were completed by...Ch. 10 - Preston Company sells candy wholesale, primarily...Ch. 10 - MacDonald Bookshop had the following transactions...Ch. 10 - The following transactions were completed by...Ch. 10 - The following transactions were completed by...Ch. 10 - The following transactions were completed by Yang...Ch. 10 - C. R. McIntyre Company sells candy wholesale,...Ch. 10 - Prob. 3PBCh. 10 - The following transactions were completed by Yang...Ch. 10 - The following transactions were completed by...Ch. 10 - Prob. 1ACh. 10 - You are the manager of the Accounts Receivable...Ch. 10 - Prob. 3ACh. 10 - Suppose we collected cash from a charge customer...Ch. 10 - Prob. 1CP
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- What is the normal balance for each of the following accounts: (a) Purchases? (b) Sales Discounts? (c) Purchases Returns and Allowances? (d) Sales? (e) Purchases Discounts? (f) Sales Returns and Allowances?arrow_forwardWhich of the following accounts are used when recording a purchase using a periodic inventory system? A. cash, purchases B. accounts payable, sales C. accounts payable, accounts receivable D. cash, merchandise inventoryarrow_forwardWhat do credit terms of 4/10, n/30 mean in regard to a purchase?arrow_forward
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