(Worth 4 points) On June 1, merchandise subject to terms 2/10, n/30 was sold on account to a customer for $26,500. On June 3, the customer returns $5,800 of that merchandise. SHOW ALL YOUR COMPUTATIONS FOR FULL CREDIT!a) What is the amount of cash collected by the seller if the payment is made by the customer on June 8?b) What is the amount of cash collected by the seller if payment is made by the customer on June 21?
Read DetailsThe Garrett Company uses the perpetual inventory system. The company’s records showed a book balance of $18,000 in the Merchandise Inventory account, and a physical count finds only $16,250 of inventory. Which of the following indicates the effect of the necessary write-down entry? Balance Sheet Income Statement Statement of Cash Flows Assets = Liabilities + Stockholders’ Equity Revenue − Expenses = Net Income A. (1,750) = NA + (1,750) NA − 1,750 = (1,750) NA B. NA = 1,750 + (1,750) NA − 1,750 = (1,750) NA C. 16,250 = NA + 16,250 16,250 − NA = 16,250 16,250 IA D. (18,000) = NA + (18,000) (18,000) − NA = (18,000) NA
Read Details(Worth 3 points) Indicate how this event affects the financial statements. Use the following letters to record your answer in the box shown below. If the event increases one account and decreases another account equally within the same element, record I/D. If the event has no impact on the element, record NA. You do not need to enter dollar amounts. Increase = I Decrease = D Not Affected = NA DO NOT LEAVE A SPACE BLANK! Bell Company provided consulting services for $20,000 cash. Assets = Liabilities + Stockholders’ Equity / Revenue – Expenses = Net Income = + / – =
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