The home office ships merchandise to the branch at 25 percent above cost. At what amount should the Home Office account be credited if merchandise costing P120,000 will be shipped? Present solution in good accounting form.

The home office ships merchandise to the branch at 25 percent above cost. At what amount should the Home Office account be credited if merchandise costing P120,000 will be shipped? Present solution in good accounting form.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 4P: A large retailer obtains merchandise under the credit terms of 1/15, net 45, but routinely takes 60...

See similar textbooks

Related questions

Q: A small retailer buys goods from a vendor with an invoice amount of $9,300. The terms of the sale…

A: The term indicates that if the buyer paid his dues within stipulated time then he is eligible for…

Q: Scenario: You sold $30,000 worth of finished goods and $1,000 worth of trading goods to a customer…

A: Shipping can consist of two terms of trade. Either FOB Shipping point or FOB Destination point. In…

Q: Review the following situations and record any necessary journal entries for Lumber Farm Feb. 13…

A: FOB Destination is one of the shipping terms under which payment of all freight costs is the…

Q: The home office ships merchandise to the branch at 50 percent above cost. On its books the branch…

A: Formula: Overvaluation of branch inventory account = Cost of goods sold x Mark up percentage

Q: Financial information is presented below: Operating expenses $ 20000 Sales returns and allowances…

A: Profit margin ratio is the ratio of Net Income to net sales of the business. profit margin ratio =…

Q: a company reports the following sales related information sales,gross $200,000 sales returns and…

A: Net sales = Gross sales - sales returns and allowances - sales discounts

Q: A retail store credited the Sales Revenue account for the sales price and the amount of sales tax on…

A: Tax is calculated on the income earned and paid to the government that acts as the revenue for the…

Q: Calculate the gross profit from the following? Sales OMR 10000, Cost of goods sold OMR 4000 and…

A: Net sales = Sales - Return inwards = 10000 - 4000 = 6000

Q: Can you please help me find the answers to the question marks below:Todrick Company is a…

A: The first step is to find out the cost of goods sold which is the variable cost of the product.The…

Q: The Consignment Out account of Jackie Department Store is shown below: CONSIGNMENT OUT For goods…

A: Consignment The whole rights which are incurred in the consignment business was the consignor who…

Q: Win Company has a branch in JAA City. JAA receives all its merchandise from Win at 25% above cost…

A: The financial position of the company can be arrived from the income statement prepared by the…

Q: Presented below are selected transactions of Kingbird Company. Kingbird sells in large quantities to…

A: General journal is the book of original entry in which all the financial transactions of the…

Q: Goods costing $21,000 were sold for $52,000 on account. The entry to record this transaction would…

A: Goods costing $21,000 were sold for $52,000 on account

Q: The Consignment Out account of Jackie Department Store is shown below: CONSIGNMENT OUT For goods…

Q: Financial information is presented below: Operating expenses $ 41000 Sales returns and allowances…

A: Net sales means sales after taking deduction of sales discounts and sales returns and allowances.

Q: Home office shipped merchandise costing $120,000 to branch at a billed price of $168,000. Assume at…

A: Branches are responsible to keep an accounting record of investment received from the Home office.…

Q: A retailer buys merchandise from a supplier with an invoice amount of $12,800. The terms of the sale…

A: Discount amount = Invoice amount x discount rate = $12,800 x 5% = $640

Q: You are given the information below and you are requested to answer the following questions (keep…

A: Formula: Gross margin = [ ( Sales revenue - cost of goods sold ) / sales revenue ] x 100 Deduction…

Q: Review the following situations and record any necessary journal entries for Nine Lives Inc. Jan.…

A: Perpetual inventory system is that inventory system under which all transactions related to…

Q: Jasper Company is a wholesaler that buys merchandise in large quantities. Its supplier’s catalog…

A: Particulars Amount ($) The list price per unit $500 Less: Discount ($500 x 30%) 150 Net…

Q: An electronics retailler purchases $25,000 of computers on account for resale. The retailer returns…

A: There is two method of inventory: 1. Periodic inventory method: It is a inventory valuation method…

Q: Axy's Store provides the following information relative to the following four items being sold as…

A: Bundled selling price will be allocated to each product in the ratio of standalone selling price of…

Q: cs. Boys’ clothes ₱ 6,300 Cost of 48 pcs. underwear 7,680 30 pcs. underwear 7,50

A: Given: To calculate the remitted amount and the consignment profit as,

Q: The home office ships merchandise to the branch at 50 percent above cost. On its books the branch…

A: Inventory: It refers to the items held by an organization which were in various forms like raw…

Q: A company purchases merchandise with a catalog price of $24,500. The company receives a 35% trade…

A: Trade discount: When a producer selling the product to a reseller instead of the end consumer, it…

Q: A customer pays on credit for $1,250 worth of merchandise, terms 4/15, n/30. If the customer pays…

Q: Goods costing $21,000 were sold for $52,000 on account. The entry to record this transaction would…

A: Sales are described as the term which is used when the business provides the goods or services to…

Q: The home office ships merchandise to the branch at 50 percent above cost. On its books the branch…

A: home office transfer to branch @50% above cost beginning inventory = 15000 shipments from home…

Q: Assume Bella Donna’s General Store bought, on credit, a truckload of merchandise from American…

A: If the payment is made within discount period, the discount canbbe availed as per the terms and…

Q: 7.The home office ships merchandise to the branch at 25 percent above cost. At what amount should…

A: In Accounting, branch refers to a trading facility of a pre-existing business entity which is opened…

Q: A customer returns $870 worth of merchandise and receives a full refund. What accounts recognize…

A: Returning the goods to retailers is called sales returns. This is a properly stated period of time…

Q: A large retailer obtains merchandise under the credit terms of 1/10, net 30, but routinely takes 60…

A: Cost of trade credit is also known as cost incurred for not taking the discount. This cost is…

Q: amount should the Home Office account be credited if merchandise costing P120,000 will be shipped

A: Shipping price = Cost + (Cost * Markup percentage)

Q: Goods costing $630,000 were sold for $1,200,000 on account. The entry to record this transaction…

A: When goods has bee sold out , then finished goods is going out and it should be debited to cost of…

Q: Goods costing $21,000 were sold for $52,000 on account. The entry to record this transaction would…

A: When goods are sold to customers, then accounts receivable is debited and Sales is credited. To…

Q: Goods costing $630,000 were sold for $1,200,000 on account. The entry to record this transaction…

A: The activity where the goods which are produced or manufactured by the entity are sold for cash or…

Q: A customer returns $690 worth of merchandise and receives a full refund. What accounts recognize…

Q: The home office sells merchandise to its branch at 120% of cost. The branch was established several…

A: Lets understand the basics. When home office shipped goods to branch office which exceeds its cost…

Q: During the current year, merchandise is sold for $237,500 cash and $625,000 on account. The cost of…

A: Gross profit means sales revenue earned over and above cost of goods that are sold to customers.…

Q: Quartz Corporation had the following account balances: Sales, $875,000; Sales Returns and…

A: Net sales can be calculated by deducting sales returns and allowances from the gross sales value.

Q: They sold $50,000 worth of goods on credit, with terms 3/10, n/20, on 2/1/2021. Record this journal…

A: Net Method Journal Entries Date General Journal Debit Credit 2-1-2021 Account…

Q: During February 1, 2018 Royal Company sold merchandise with a price of P100,000 towards Dew…

A: Solution Good in transit Refers to merchandise and other type of inventory that have left the…

Q: If the sun company sold merchandise for $1000 cash and the customer return the defective goods worth…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Journalize the following sales related transactions. a) Sold merchandise on account to Jangle Co.,…

A: We have to record the given sales transactions into the journal.

Q: Financial information is presented below: Operating expenses $ 48000 Sales returns and allowances…

A: Net Sales = Sales revenue - Sales discounts - Sales returns and allowances

Q: The home office ships merchandise to the branch at 25 percent above cost. At what amount should the…

A: Solution: When Home office ships merchandise to Branch, Branch will debit inventory and credit home…

Q: Record the following transactions in the sales journal: Jan. 15 Invoice #325, sold goods on credit…

A: There are no. of transactions are done in the organisation, to take the effect of each and every…

Question

The home office ships merchandise to the branch at 25 percent above cost.

At what amount should the Home Office account be credited if merchandise costing P120,000 will be shipped? Present solution in good accounting form.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

PLEASE SHOW SOLUTIONS IN GOOD ACCOUNTING FORM. 7.The home office ships merchandise to the branch at 25 percent above cost. At what amount should the Home Office account be credited if merchandise costing P120,000 will be shipped?
Show the solution in good accounting form The home office ships merchandise to the branch at 25 percent above cost. At what amount should the Home Office account be credited if merchandise costing P120,000 will be shipped?
A customer returns $690 worth of merchandise and receives a full refund. What accounts recognize this sales return, assuming the customer has not yet remitted payment to the retailer? Group of answer choices 1.accounts receivable, sales returns and allowances 2.accounts receivable, cash 3.sales returns and allowances, purchases 4.sales discounts, cost of goods sold
Scenario: You sold $30,000 worth of finished goods and $1,000 worth of trading goods to a customer for $55,000 and $2,000, respectively. . Prepare the t-accounts to illustrate the impact of shipping . Prepare the t-accounts to illustrate the impact of billing . Prepare the t-accounts to illustrate the impact
Assume the following information: merchandise is sold on account to customer for P120,000, FOB Shipping Point, 2/10, n/30. The seller paid transportation cost of P6,000. What is the amount of remittance due within the discount period?
GINKGO-NUTS Enterprises' purchases per purchase invoice is ₱150,000. The purchase discount is 2/10, n/30. Freight is ₱500, FOB Shipping point prepaid. At what amount is the accounts payable debited upon payment? SHOW YOUR SOLUTION IN GOOD ACCOUNTING FORM
need help with this ASAP, thanks. A sales invoice included the following information: merchandise price, P12,000; transportation, P500; terms 2/10, n/30, FOB shipping point. Assuming that a credit for merchandise returned of P600 is granted prior to payment, that the transportation is prepaid by the seller, and that the invoice is paid within the discount period, what is the amount of cash received by the seller?
A sales invoice include the following information: merchandise price, $12,000: terms 1/10, n/oem;FOB shipping point with prepaid freight of $900, added to tlhe invoice. Assuming that a credit for merchandise returned of $500 is granted prior to payment and that the invoice is paid within the discount period, what is the amount of cash that should be received by the seller? How do you solve this?
Cracker & Company sold merchandise to a customer on credit. The sale price was $8,000. What would be the effect of this transaction on the accounting equation? Select the correct option form screenshot.
A customer returns $690 worth of merchandise and receives a full refund. What accounts recognize this sales return, assuming the customer has not yet remitted payment to the retailer? A. accounts receivable, sales returns and allowances B. accounts receivable, cash C. sales returns and allowances, purchases D. sales discounts, cost of goods sold
The Stationery Company purchased merchandise on account from a supplier for $9,300, terms 1/10, n/30. The Stationery Company returned $1,200 of the merchandise and received full credit. a. If Stationery Company pays the invoice within the discount period, what is the amount of cash required for the payment? b. Under a perpetual inventory system, what account is credited by Stationery Company to record the return? Cost of Merchandise Sold ? Inventory ? Sales ? Accounts Payable?
Important Note! Before you start working on this problem, watch the Hint video. This video shows you exactly how to work this problem. Compute the amount to be paid for each of the four separate invoices assuming that all invoices are paid within the discount period a. b. Merchandise (gross) $ S C. $ d. $ 7,800 24,200 80.600 17,000 Terms 2/10, n/60 1/15, n/90 1/10, n/30 3/15, n/45 Payment