Chapter_6_HW_Solution_final - AEM 221 Financial Accounting...

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AEM 221 Financial Accounting Spring 2007 Chapter 6 Homework Solution 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 $910 to S. Green and billed that amount subject to terms 2/10, n/30. 6 Sold goods to M. Munoz for $750 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 $570 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 your answers to two decimal places. Sales revenue $ 2,230 Less: Sales discount 18.2 Net sales $ 2,211.8 E6-3 Reporting Net Sales with Credit Sales, Sales Discounts, Sales Returns, and Credit Card Sales 1
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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 $370 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 $4,200 (total); terms 3/10, n/30 28 Sold 10 identical items of merchandise to Customer D at an invoice price of $6,000 (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. Round your answers to the nearest dollar. Sales revenue $ 10,570±1 Less: Sales returns and allowances 600±1 Less: Sales discounts 162±1 Less: Credit card discounts 7±1 Net sales $ 9,801±1 E6-6 Analyzing Gross Profit Percentage on the Basis of an Income Statement and Within-
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This homework help was uploaded on 09/24/2007 for the course AEM 2210 taught by Professor Little,j. during the Spring '07 term at Cornell University (Engineering School).

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Chapter_6_HW_Solution_final - AEM 221 Financial Accounting...

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