Name Discussion Section CHAPTER 5 QUIZ PLEASE SHOW ALL OF YOUR WORK! Schmada, In
ID: 2541633 • Letter: N
Question
Name Discussion Section CHAPTER 5 QUIZ PLEASE SHOW ALL OF YOUR WORK! Schmada, Inc sold a handbag for $2,000. The cost that Schmada, Inc incurred to produce the bag was $150. Make the journal entry to record this transaction assuming that Schmada, Inc uses a perpetual inventory system: (1 points) 1. Date Account Title Debit Credit 2. Define the credit terms of 2/15 n/30. (1 point) (a) 15% discount if paid in 2 days total due in 30 days (b) 2% discount if paid in 15 days total due in 30 days (c) 30% discount if paid in 2 days total due in 15 days (d) 50% discount if paid 2 days total due in 30 days 3. Calculate the Gross Profit with the following information: (1 point) Net Sales: $100,000 Cost of Goods Available for Sale: $60,000 Cost of Goods Sold: $50,000 Gross Sales: $110,000 Gross Profit 4. (1 Point) What is your TA's name what is your discussion #-Explanation / Answer
Answer:-1)-Journal entry :-
Date Accounts Titles and explanation Debit Credit
Accounts Receivable $2000
Sales $2000
(Being goods are sold)
Cost of goods sold $150
Inventory $150
(Being entry are made)
2)-The credit terms of 2/15 n/30 means:-2% discount if paid in 15 days total due in 30 days (Option a).
3)-Gross profit:- Net Sales – Cost of goods sold
=$100000-$50000
=$50000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.