Chapter 06 Solutions.pdf - During the months of January and...

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During the months of January and February, Hancock Corporation sold goods to three customers. The sequence of events was as follows:Jan. 6 Sold goods for $1,500 to S. Green and billed that amount subject to terms 2/10, n/30.6 Sold goods to M. Munoz for $850 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 $500 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.
WorksheetDifficulty: 2 MediumLearning Objective: 06-01 Analyze the impact of credit cardsales, sales discounts, and sales returns on the amountsreported as net sales.eBook & ResourcesReferences
The following transactions were selected from among those completed by Cadence Retailers in November and December:Nov. 20 Sold 20 items of merchandise to Customer B at an invoice price of $5,500 (total); terms 3/10, n/30.25 Sold two items of merchandise to Customer C, who charged the $400 sales price on her Visa credit card. Visa charges Cadence Retailersa 2 percent credit card fee.28 Sold 10 identical items of merchandise to Customer D at an invoice price of $9,000 (total); terms 3/10, n/30. 29 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.20 Customer B paid in full for the invoice of November 20.Required:Assume that Sales Returns and Allowances, Sales Discounts, and Credit Card Discounts are treated as contra-revenues; compute net sales for thetwo months ended December 31. (Do not round your intermediate calculations.)
WorksheetDifficulty: 2 MediumLearning Objective: 06-01 Analyze the impact of credit cardsales, sales discounts, and sales returns on the amountsreported as net sales.eBook & ResourcesReferences
Required:1. Compute the annual interest rate implicit in the sales discount.(Use 365 days in a year. Do not round intermediate calculations. Enter youranswer as a percentage rounded to 2 decimal places (i.e. 0.1234 should be entered as 12.34).)
WorksheetDifficulty: 2 MediumLearning Objective: 06-01 Analyze the impact of credit cardsales, sales discounts, and sales returns on the amountsreported as net sales.

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