ACTG 1P12 Lecture : Chapter 6 Notes - class.docx

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burgundyplatypus606

14 Apr 2012

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Payment terms with supplier dictates amount paid + when: e. g. 2/10, n/30 means that a 2% discount can be taken if payment is made within 10 days; otherwise, balance is due in 30 days. Purchase discounts c-il account with cr. Purchase returns + allowance cr. balance account. Freight-in cost to transport product to us: shipping terms dictate who pays freight. Fob destination title changes when the goods reach the buyer. Fob shipping point title changes when the goods are loaded onto the truck. Buyer pays the freight: purchases purchase discounts purchase returns and allowances + freight-in (also reflects total inventory cost) Cost of goods sold xx xx xx xx xx. Inventory is updated every time a purchase and sale is made: cogs is a gil account. Inventory is only updated at the reporting period. To record merchandise sales. xx xx xx xx. Abc co. receives an order for 200 units of merchandise for ,000 on february 1, 2012.

Related Questions

Nov.	3	Instructions: Journalize the transactions below (credit and debit) Purchased merchandise on account from Moonlight Co., list price $90,000, trade discount Discounts from the list prices in published catalogs or special discounts offered to certain classes of buyers. 25%, terms FOB destination Freight terms in which the seller pays the transportation costs from the shipping point to the final destination. , 2/10, n/30.
	4	Sold merchandise for cash, $36,900. The cost of the goods sold The cost that is reported as an expense when merchandise is sold. was $20,480.
	5	Purchased merchandise on account from Papoose Creek Co., $50,700, terms FOB shipping point Freight terms in which the buyer pays the transportation costs from the shipping point to the final destination. , 2/10, n/30, with prepaid freight of $750 added to the invoice The bill that the seller sends to the buyer. .
	6	Returned $12,750 ($17,000 list price less trade discount of 25%) of merchandise purchased on November 3 from Moonlight Co.
	8	Sold merchandise on account to Quinn Co., $14,550 with terms n/15. The cost of the goods sold was $9,510.
	13	Paid Moonlight Co. on account for purchase of November 3, less return of November 6.
	14	Sold merchandise on VISA, $239,110. The cost of the goods sold was $137,270.
	15	Paid Papoose Creek Co. on account for purchase of November 5.
	23	Received cash on account from sale of November 8 to Quinn Co.
	24	Sold merchandise on account to Rabel Co., $57,100, terms 1/10, n/30. The cost of the goods sold was $32,270.
	28	Paid VISA service fee of $3,700.
	30	Paid Quinn Co. a cash refund of $5,960 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,290.

pucewildebeest226

A company purchased $10,100 of merchandise on June 15 with termsof 2/10, n/45, and FOB shipping point. The freight charge was $550and was prepaid by the seller. On June 20, it returned $880 of thatmerchandise. On June 24, it paid the balance owed for themerchandise taking any discount it is entitled to. The cash paid onJune 24 equals:

$10,650.

$10,430.

$9,586.

$10,330.

$9,224.