The following transactions were selected from among those completed by Cadence R
ID: 2489206 • Letter: T
Question
The following transactions were selected from among those completed by Cadence Retailers in 2013: Nov. 20 Sold 20 items of merchandise to Customer B at an invoice price of $5,700 (total); terms 4/10, n/30. 25 Sold two items of merchandise to Customer C, who charged the $500 sales price on her Visa credit card. Visa charges Cadence Retailers a 2 percent credit card fee. 28 Sold 10 identical items of merchandise to Customer D at an invoice price of $10,000 (total); terms 4/10, 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, 2013. Net sales = ?? show work
Explanation / Answer
Date:::::::::::::::Particulars:::::::::::::::::::::::::::::::::LF:::::::::::::::::::::::::::::::::::::DEbit::::::::::::::::::::::::::Credit
Nov. 20, 2013:Accounts Receivable A/c Dr::::N/A::::::::::::::::::::::::::::::::::$5,700
To Sales A/c:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$5,700
(Goods sold credit to Customer B)
___________________________________________________________________________________
Nov. 25, 2013::Visa credit card Receivable A/c Dr::::N/A::::::::::::::::::::::::::::::::::$490
Credit card fees A/c Dr::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$10
To Sales A/c::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$500
(Goods sold credit to Customer C)
______________________________________________________________________________________
Nov. 28, 2013::::::Accounts Receivable A/c Dr::::N/A::::::::::::::::::::::::::::::::::$10,000
To Sales A/c::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$10,000
(Goods sold credit to Customer D)
____________________________________________________________________________________
Nov. 29, 2013::::Sales Return A/c::::::::::::N/A:::::::::::::::::::::::::::::::::::::::$1000
To Accounts Receivable A/c :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$1000
(Goods sold credit was return by Customer D)
10,000 *1/10items value =$1000
_________________________________________________________________________________
Dec. 6,2013::::Cash A/c Dr::::::::::::::::::::::::N/A:::::::::::::::::::::::::::::::::::::::::::::::$8,640
Cash Discounts ::::::::::::::::::N/A:::::::::::::::::::::::::::::::::::::::::::::::::$360
To accounts Receivable a/c:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$9,000
($9,000 * 4/100=$360:::$9,000 - $360=$$8,640::( accounts paid)
_______________________________________________________________________________
Dec 20, 2013:::Cash A/c Dr::::::::::::::::::::::::N/A:::::::::::::::::::::::::::::::::::::::::::::::$5,700
To accounts Receivable a/c:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$5,700
____________________________________________________________________________
Net sales calculation
Gross Sales
Customer B = $5,700
Customer C=$ $500
Customer D =$10,000
Less:
Credit card fees: $10
Sales Returns:::::$1000
Cash Discounts=$::$360
________________________
Net Sales:::::::::::::::$14,830
______________________________________________________________________________________
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.