ch 6 fall - Chapter 6 Homework Problems E6-1 Reporting Net...

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Chapter 6 Homework Problems E6-1 Reporting Net Sales with Credit Sales and Sales Discounts 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 $870 to S. Green and billed that amount subject to terms 2/10, n/30. Jan. 6 Sold goods to M. Munoz for $950 and billed that amount subject to terms 2/10, n/30. Jan. 14 Collected cash due from S. Green. Feb. 2 Collected cash due from M. Munoz. Feb. 28 Sold goods for $420 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. Round answers to two decimal places. Sales revenue $ 2,240 Less: Sales discount 17.4 Net sales $ 2,222.6 E6-3 Reporting Net Sales with Credit Sales, Sales Discounts, Sales Returns, and Credit Card Sales
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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 $520 sales price on her Visa credit card. Visa charges Clem Wholesalers a 2 % credit card fee. Nov 25 Sold 20 items of merchandise to Customer C at an invoice price of $4,200 (total); terms 3/10, n/30 Nov 28 Sold 10 identical items of merchandise to Customer D at an invoice price of $5,100 (total); terms 3/10, n/30. Nov 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. Dec 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. Round answers to nearest whole dollar. Sales revenue $ 9,820 Less: Sales returns and allowances 510 Less: Sales discounts 138 Less: Credit card discounts 10 Net sales $ 9,162 E6-6 Analyzing Gross Profit Percentage on the Basis of an Income Statement and Within-Industry Comparison
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This note was uploaded on 03/26/2008 for the course AEM 2210 taught by Professor Little,j. during the Spring '07 term at Cornell University (Engineering School).

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ch 6 fall - Chapter 6 Homework Problems E6-1 Reporting Net...

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