chapter_6_solution - Homework #5 Chapter 6 Homework...

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Homework #5 Chapter 6 Homework Problems E6-1 Reporting Net Sales with Credit Sales and Sales Discounts LO2 During the months of January and February, Gold Corporation sold goods to three customers. The sequence of events was as follows: Jan. 6 Sold goods for $1,160 to S. Green and billed that amount subject to terms 2/10, n/30. 6 Sold goods to M. Munoz for $960 and billed that amount subject to terms 2/10, n/30. 14 Collected cash due from S. Green. Feb. 2 Collected cash due from M. Munoz. 28 Sold goods for $580 to R. Reynolds and billed that amount subject to terms 2/10, n/45. Required: Assuming that Sales Discounts is treated as a contra-revenue, compute net sales for the two months ended February 28. Sales revenue $ 2,700 Less: Sales discount 23.2 Net sales $ 2,676.8 E6-3 Reporting Net Sales with Credit Sales, Sales Discounts, Sales Returns, and Credit Card Sales LO2 The following transactions were selected from among those completed by Clem Wholesalers in 2007: Nov. 20 Sold two items of merchandise to Customer B, who charged the $530 sales price on her Visa credit card. Visa charges Clem Wholesalers a 2 percent credit card fee. 25 Sold 20 items of merchandise to Customer C at an invoice price of $4,000 (total);
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terms 3/10, n/30 28 Sold 10 identical items of merchandise to Customer D at an invoice price of $6,700 (total); terms 3/10, n/30. 30 Customer D returned one of the items purchased on the 28th; the item was defective, and credit was given to the customer. Dec. 6 Customer D paid the account balance in full. 30 Customer C paid in full for the invoice of November 25, 2007. Required: Assuming that Sales Returns and Allowances, Sales Discounts, and Credit Card Discounts are treated as contra-revenues, compute net sales for the two months ended December 31, 2007. Sales revenue $ 11,230 Less: Sales returns and allowances 670 Less: Sales discounts 181 Less: Credit card discounts 11 Net sales $ 10,368 E6-6 Analyzing Gross Profit Percentage on the Basis of an Income Statement and Within-Industry Comparison LO3
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This note was uploaded on 10/19/2008 for the course AEM 2210 taught by Professor Little,j. during the Fall '07 term at Cornell University (Engineering School).

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chapter_6_solution - Homework #5 Chapter 6 Homework...

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