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12/7/2014Assignment 101/19Assignment:Assignment 10Student:Matthew ToenjesTake DetailsAssignment score:100%Total Time spent:5 hours, 22 minutes, 41 secondsScore for selected take:100% (21/21)Time spent on selected take:1.Your answer:Sales Discounts: Gross MethodOn January 16, two credit sales were made, one for $300 and one for $400. Terms for both sales were3/15, n/30. Cash for the $300 sale was collected on January 25; cash for the $400 sale was collectedon February 14.Make all journal entries necessary to record both the sales and the cash collections. Use the grossmethod of accounting for sales discounts. If an amount box does not require an entry, leave it blank.Jan. 16Accounts Receivable700Sales700Jan. 25Cash291blankSales Discounts9blankAccounts Receivableblank300Feb. 14Cash400Accounts Receivable400
12/7/2014Assignment 102/192.Your answer:Estimation and Recognition of Warranty ExpenseHistorically, warranty expenditures have been equal to 4% of sales. Total sales for the year were$650,000. Actual warranty repairs made during the year totaled $29,000.Make the necessary summary journal entries to (a) record warranty expense and (b) record actualrepairs.(a)(b)Estimated Warranty Liability3.Your answer:Sales DiscountsOn November 1, Rosario Company sold goods on account for $7,000. The terms of the sale were 3/10,n/40. Payment in satisfaction of $3,000 of this amount was received on November 9. Payment insatisfaction of the remaining $4,000 was received on December 9.1. How much cash did Rosario Company collect from this $7,000 account?
12/7/2014Assignment 103/192. Using the gross method, what journal entries would Rosario make on November 9 and December9? If an amount box does not require an entry, leave it blank.3. Using the net method, what journal entries would Rosario make on November 9 and December 9?If an amount box does not require an entry, leave it blank.November 9Cash2910Accounts Receivable2910December 9Cash4000blankAccounts Receivableblank3880Sales Discounts Not Takenblank1204.
12/7/2014Assignment 104/19Your answer:Exercise 834PercentageofCompletion and Completed Contract Methods of Income Recognition