Stardust Furniture Store sells "low end" furniture and uses the installment method for revenue recognition. Its year-end is December 31. It shows the following data for January: Sales of $1,890 with a 50% markup. Sales terms: No down payment in January, no interest and 6 easy monthly payments starting in February. Required 1: Assuming no other transaction happened, what revenue is recognized in January? $ Required 2: Assuming no other transaction happened, what revenue is recognized in February? $ Required 3: Assuming no other transaction happened, what cost of goods sold is recognized in March? $ Required 4: Assuming no other transaction happened, what is the Gross Margin of April? $
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- During December, Far Eas Services makes a credit sale of $1,600 (before sales taxes). The state sales tax rate is 6% and the local sales tax rate is 2.5%. Record sales and sales tax payable. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)During December, Far West Services makes a $5,000 credit sale. The state sales tax rate is 6% and the local sales tax rate is 2.5%. (Note: the sales tax amount is in addition to the credit sale amount.) Record sales and sales tax payable. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 > Record the sale including the sales tax. Note: Enter debits before credits. Transaction General Journal Debit Credit 1During December, Far Eas Services makes a credit sale of $2,200 (before sales taxes). The state sales tax rate is 6% and the local sales tax rate is 2.5%. Record sales and sales tax payable. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit 1 1 Accounts Receivable 2,387 Sales Revenue Sales Tax Payable
- During December, Far West Services makes a $3,600 credit sale. The state sales tax rate is 6% and the local sales tax rate is 2.5%. (Note: the sales tax amount is in addition to the credit sale amount.) Record sales and sales tax payable. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)Douglas Corporation reports it sold merchandise on account for a total of $800,000 for the current year. The cost to Douglas for the merchandise was $300,000. To encourage early payment, Douglas offers its customers credit terms of 1/10, n/30. At year-end, there is $150,000 of sales on account still eligible for the 1 percent discount. Douglas believes that all customers will pay within the discount period to receive the discount. Prepare the adjusting journal entry needed for Douglas Corporation to comply with the new revenue recognition standard. Assume Douglas’s fiscal year-end is December 31.Sunland Auto Supply does not segregate sales and sales taxes at the time of sale. The register total for March 16 is $55,000. All sales are subject to a 10% sales tax. Compute sales taxes payable. Sales taxes payable 2$ Make the entry to record sales taxes payable and sales revenue. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Mar. 16
- At the end of the year, Brinkley Incorporated’s balance of Allowance for Uncollectible Accounts is $3,100 (debit) before adjustment. The company estimates future uncollectible accounts to be 3% of credit sales for the year. Credit sales for the year total $126,000. What adjusting entry would Brinkley record for Allowance for Uncollectible Accounts using the percentage-of-credit-sales method? (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)Coghlan Auto Supply does not segregate sales and sales taxes at the time of sale. The register total for March 16 is $38,500. All sales are subject to a 10% sales tax. Compute sales taxes payable. Sales taxes payable $ Make the entry to record sales taxes payable and sales revenue. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Mar. 16 Show Work is REQUIRED for this question: Open Show WorkSara Company sold merchandise on credit with a list price of P105,000 and a trade discount of 10%. Terms were 2/10, n/30. The company uses the net price method. At the end of the year, the account is still outstanding and the discount period has already lapsed. What is the required adjusting entry at year end in order to report the accounts receivable at its net realizable value?
- At the end of the year, Brinkley Incorporated's balance of Allowance for Uncollectible Accounts is $3,900 (credit) before adjustment. The company estimates future uncollectible accounts to be 4% of credit sales for the year. Credit sales for the year total $134,000. What is the adjustment Brinkley would record for Allowance for Uncollectible Accounts using the percentage-of-credit-sales method? (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 Record the adjusting entry for Allowance for Uncollectible Accounts. Note: Enter debits before credits. Transaction General Journal Debit Credit 1Brian Burns uses perpetual inventory system and LIFO All credit sales discounts are recorded using the net method – customers receive a 3 percent discount if they pay within 30 days. Purchase discounts are recorded using the net method All depreciation is straight line. Additional Information for Journal Entries Brian Burns records accruals for utilities expense as an adjusting journal entry at the end of each year. They pay utilities once a year on January 31st for the prior year. NOTE: There is no payment for utilities on January 31st of 2022 because January 1 of 2022 is the first day of operations. January 1 Sold 10,000 shares of common stock for $95 per share. Borrowed $2,000,000 at 8 percent with interest payable semi-annually (on July 1 and January 1). Purchased 1,000 units of inventory at $150 a piece on credit from Biggie Smalls Inc. Terms are 2/10; n/60 Paid $480,000 for 2 years of rent in advance…Brian Burns uses perpetual inventory system and LIFO All credit sales discounts are recorded using the net method – customers receive a 3 percent discount if they pay within 30 days. Purchase discounts are recorded using the net method All depreciation is straight line. Additional Information for Journal Entries Brian Burns records accruals for utilities expense as an adjusting journal entry at the end of each year. They pay utilities once a year on January 31st for the prior year. NOTE: There is no payment for utilities on January 31st of 2022 because January 1 of 2022 is the first day of operations. January 1 Sold 10,000 shares of common stock for $95 per share. Borrowed $2,000,000 at 8 percent with interest payable semi-annually (on July 1 and January 1). Purchased 1,000 units of inventory at $150 a piece on credit from Biggie Smalls Inc. Terms are 2/10; n/60 Paid $480,000 for 2 years of rent in advance…