(a) On March 2, Sage Hill Company sold $891,900 of merchandise to Oriole Company on account, terms 3/10, n/30. The cost of the merchandise sold was $527,400. (b) On March 6, Oriole Company return $114,400 of the merchandise purchased on March 2. The cost of the merchandise returned was $64,100. (c) On March 12, Sage Hill Company received the balance due from Oriole Company.

Answers

Answer 1
Answer:

Answer:

See explanation section.

Explanation:

                                              Sage Hill Company

                                              Journal entries

Requirement A.

March 2 Account receivable - Oriole Company    debit  $891,900

                    Sales revenue                                         credit   $891,900

Note: Assume that the company used gross method under a perpetual inventory system, during the sales, the company did not deduct the discount.

Cost of good sold            Debit  $527,400

Merchandise inventory   Credit  $527,400

Note: Under the perpetual inventory system, a seller has to record cost of good sold journal.

Requirement B & C.

B.

March 6 Sales Returns and Allowances Debit    $114,400

Account Receivable                   Credit   $114,400

Note: As the company did not calculate the cost of return goods, we did not give the cost of merchandise journal.

C.

March 12 Cash                            Debit     $891,900

Sales Discounts          Debit     $26,757

Account Receivable   Credit    $891,900

Note: Calculation: (891,900-(891,900 × 3%) = (891,900 - 26,757) = $865,143.

As the company received the amount with in the discount period, the customer got the discount from the seller.


Related Questions

When a consultant prepared marketing dashboards showing sales data for different household types over a four-year period for Tony's pizza, this was which step of the marketing research approach?
Delicious Desserts is thinking about ending the production of two types of ice cream. Financial data related to the products is provided below: Rum Raisin Blue Moon Sales $680,000 $573,000Variable expenses 246,000 219.000 Fixed expenses 468,000 364,000If Delicious stops making Rum Raisin ice cream, it estimates it can eliminate 75% of the fixed costs associated with that product. Similarly, if it stops making Blue Moon, it estimates it can eliminate 70% of the fixed costs associated with that product. Given these figures, which of the following statements is true?A) Delicious would be worse off if it discontinues Rum Raisin and would be better off if it discontinues Blue Moon. B) Delicious would be better off if it discontinues Rum Raisin and would be worse off if it discontinues Blue Moon. C) Delicious would be better off if it discontinues both products. D) Delicious would be worse off if it discontinues either product.
In an assembly operation at a furniture factory, 4 employees assembled an average of 600 standard dining chairs per 6-day work week. What is the labor productivity of this operation
A cost that remains unchanged in total despite variations in volume of activity within a relevant range is a: Multiple Choice Fixed cost. Curvilinear cost. Variable cost. Step-wise variable cost. Standard cost.
Wren Pork Company uses the relative market value method/Value basis method of allocating joint costs in its production of pork products. Relevant information for the current period follows:Product Pounds Price/lb.Loin chops 3,080 $5.40Ground 10,200 2.20Ribs 4,120 5.05Bacon 6,160 3.70The total joint cost for the current period was $45,400. How much of this cost should Wren Pork allocate to Loin chops?A. $0.B. $6,443.C. $9,134.D. $11,350.E. $45,400.

Consider three imaginary countries. In Aire, saving amounts to $4,000 and consumption amounts to $12,000; in Bovina, saving amounts to $3,000 and consumption amounts to $24,000; and in Cartar, saving amounts to $10,000 and consumption amounts to $50,000. The saving rate is

Answers

Answer:

The savings rate is higher in Aire than in Carttar and it is higher in cartar than in Bolivia.

Explanation:

To calculate savings rate:

[(Total income - consumption)/total income] x 100

Where total income = consumption + savings.

The savings rates are as follows

Aires: [(16000 -12,000)/16000] x 100

= 400/16

= 25%

Bovina: [(27000 - 24000)/27000] x 100

= 300/27

= 11.11%

Cartar: [(60000 - 50000)/60000] x 100

= 100/6

= 16.67%

Crocetti Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: Budgeted selling price per unit $ 121 Budgeted unit sales (all on credit): January 7,000 February 7,500 March 11,900 April 14,900 Credit sales are collected: 40% in the month of the sale 60% in the following month The budgeted accounts receivable balance at the end of February is closest to:

Answers

Answer:

The budgeted accounts receivable balance at the end of February is closest to: $4,500.

Explanation:

Prepare a Accounts Receivable Budget for January and February

                                              January           February      

Balance b/d                                $0                $4,200

Credit Sales                           $7,000             $7,500            

Cash Received (40%)           ($2,800)          ($3,000)

Cash Received (60%)                $0               ($4,200)

Balance c/d                           $4,200             $4,500

Conclusion:

Therefore, the budgeted accounts receivable balance at the end of February is closest to: $4,500

Using the intuitive least cost method for the given transportation problem, answer the following: Cleveland Dayton Erie Supply Allentown $22 $16 $21 100 Philadelphia $28 $27 $18 150 Harrisburg $25 $23 $19 175 Demand 175 175 175 What is the maximum quantity that can be shipped from Allentown to Erie? 100 What is the maximum quantity that can be shipped from Harrisburg to Cleveland? 175 What is the maximum quantity that can be shipped from Harrisburg to Dayton? 75 Which demand location will have an unmet demand? Cleveland Answer 1:

Answers

Answer:

The demand location where demand is unmet is equal to Cleveland. Received only 75 units. 100 units demand is unmet.

Explanation:

Solution

From the example given, we solve for which demand location will have an unmet demand

Now,

The maximum quantity that can be shipped from Allentown to Erie is 100.

The Maximum quantity that can be shipped from Harrisburg to Cleveland is 175

While,

The Maximum quantity that can be shipped from Harrisburg to Dayton is 175

Hence, in case we want an  solution optimum to get the required demand as many as possible with the supply given and with a low costs, then we need to find the optimum solution.

By applying a least cost method called greedy, we need to remove our least costing node and then provide minimum of demand and supply unit a present to each cell.

Thus,

The first least cost is Allentown to Dayton.

From Allentown to Dayton 100 units. Next least cost is Philadelphia to Erie.

From Philadelphia to Erie 150 units. Next least cost is Harrisburg to Erie.

From Harrisburg to Erie 25 units. Next least cost is Harrisburg to Dayton.

From Harrisburg to Dayton 75 units. Next least cost is Harrisburg to Cleveland

From Harrisburg to Cleveland 75 units.

So, for the  optimum solution, the right choice of answer will be

From Allentown to Erie = 0 units

From Harrisburg to Cleveland = 75 units

From Harrisburg to Dayton = 75 units

Therefore, The demand location where demand is unmet  is equal to Cleveland. Received only 75 units. 100 units demand is unmet.

Final answer:

The maximum shipment from Allentown to Erie is 100 units, from Harrisburg to Cleveland is 175 units, and from Harrisburg to Dayton is 75 units. After these shipments, no location has unmet demand.

Explanation:

The problem at hand relates to the Intuitive Least Cost Method which is a method used in the field of operations research for solving transportation problems. The methodology seeks to minimize the total transport cost while meeting the demand and supply constraints at various sites.

From the provided matrix, the maximum quantity that can be shipped from Allentown to Erie is 100 units as indicated by the supply limit of Allentown. Similarly, Harrisburg can ship a maximum of 175 units to Cleveland and 75 units to Dayton, since after fulfilling the Cleveland demand, 75 units remain for Dayton. Finally, observing the demand, we see that Cleveland will still require 175 - 175 = 0 units, Dayton 175 - 100 = 75 units and Erie 175 - 100 = 75 units. Therefore, no location remains with unmet demand.

Learn more about Intuitive Least Cost Method here:

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A problem in using the judgment by market structure criterion is that: O it is the most subjective standard.
O it is difficult to determine the relevant industry and geographic market.
O it is an expensive and time-consuming standard.
O each action of a firm must be analyzed separately and within a particular context.

Answers

Answer:

The problem faced while using the judgement by the market structure criteria is that it is difficult for determining the geographic market and the relevant industry.

Explanation:

Market structures criteria are the kind or type of goods and services being traded, the size as well as the numbers of the consumers and the producers in the market and the degree to which the information could flow freely.

So, the problem which can be faced while using the judgement by the market structure criteria is that it is difficult for determining the geographic market and the relevant industry.

As a long-term investment, Painters' Equipment Company purchased 25% of AMC Supplies Inc.'s 500,000 shares for $580,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC’s net assets were equal. During the year, AMC earned net income of $350,000 and distributed cash dividends of 25 cents per share. At year-end, the fair value of the shares is $615,000. Required: 1. Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. 2. Assume significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year.

Answers

Answer:

A.Journal entries

(1)

Dr Investment in AMC common shares

$580,000

Cr Cash $580,000

(2) No journal entry required

(3) Dr Cash $31,250

Cr Investment Revenue $31,250

(4) Dr Fair value adjustment

$35,000

Cr Net unrealised holding gains and losses- OCI $35,000

(B.) Journal entries

Dr Investment in AMC common shares $580,000

Cr Cash $580,000

(2) Investment in AMC common shares

Dr $87,500

Cr Investment Revenue $87,500

(3) Dr Cash $31,250

Cr Investment in AMC common shares $31,250

(4) No journal entry required

Explanation:

A.Journal entries

(1)

Dr Investment in AMC common shares

$580,000

Cr Cash $580,000

(2) No journal entry required

(3) Dr Cash $31,250

Cr Investment Revenue $31,250

(4) Dr Fair value adjustment

$35,000

Cr Net unrealised holding gains and losses- OCI $35,000

Working notes:

Cash Dividends = 25%*500,000*$0.25 = $31,250

Adjustment entry:

Fair value adjustment = 580,000-615,000 = $35,000

B.) Journal entries:

(1)

Dr Investment in AMC common shares $580,000

Cr Cash $580,000

(2) Investment in AMC common shares

Dr $87,500

Cr Investment Revenue $87,500

(3) Dr Cash $31,250

Cr Investment in AMC common shares $31,250

(4) No journal entry required

Working notes:

Net Income:

Investment in AMC common shares = 25%*350,000= $87,500

Cash Dividends = 25%*500,000*$0.25= $31,250

Which of the following is something a company could do to foster bonding and affective commitment? Multiple Choice add dental coverage to its health insurance package
offer incentives to the team with the highest sales
offer college reimbursement for business classes
offer free leadership seminars to all employees
hold a weekly "employee appreciation" party

Answers

Answer:

The correct answer is letter "E": hold a weekly "employee appreciation" party.

Explanation:

Organizational commitment plays a key role in employees' performance. The more engaged workers are with the company they work for, the more likely their production is going to be higher. Affective commitment refers to increasing the bonds that link workers within the organization. Casual reunions after every period of time are one of the many activities firms could use to engage employees with their brand.