Purchase Solution

Sales Discount

Not what you're looking for?

Ask Custom Question

I am working on a short chart with transactions the book says the total sales discounts should be $2680 and I have $2980. Can you help me find my error. I am attaching the scanned page from the book with the problem and the worksheet that I have completed. Thanks for your help.

Attachments
Purchase this Solution
Solution Summary

The solution explains the caculation of sales discounts

Solution Preview

The total cash discounts are as below

1. R. Jones - 11,500X2% = 230 ( one unit was returned)

2. Cash collected is $98,000. Since this is in ...

Purchase this Solution
Free BrainMass Quizzes
Basics of corporate finance

These questions will test you on your knowledge of finance.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

View More Free Quizzes
Related BrainMass Solutions

  • Pioneer Carpet: cash collection budget for March

    We're told that 25% of the sales are collected with no cash discount ("after cash discount period") in the 1st month after sale. Since sales will be $400,000, we'll collect 0.25*400000 = $100,000 in March. However, that's not all.

  • Should the proposed discount be offered?

    197976 Gardner Company Cash discount: Should the proposed discount be offered? P13-10 Initiating a cash discount Gardner Company currently makes all sales on credit and offers no cash discount.

  • Trade Credit

    Since the discount is higher, the sales should increase (d) 2/10, net 30 - This is the same as part (a) The solution explains the impact on sales of a change in trade credit terms

  • Cost of trade credit: Grunewalds's non discount customers

    Gross Sales/Day=4562500/365=12500 Average receivables of discount customers =12500*10*0.5=62500 Note Half of the customers took discounts Average receivables of non-discount customers = 437500-62500=375000 Days sales outstanding for non-discount

  • Current Assets Management for the Logan Distributing Company

    a) Compute the accounts receivables balance before and after the change in the cash discount policy. Use the net sales ( Total sales minus cash discounts) to determine the average daily sales.

  • How to do calculations for receivable and inventory policy for Bailey Company.

    Account receivables before the new credit policy = (%taking discount*collection period for discount + %using credit*collection period for credit sales)*average daily sales Average daily sales = (Total Sales - Cash discount)/365 = (200000 - 200000

  • Journalize and Post the transactions

    Sales, goods sold for cash 6400 26 Purchases a/c 2300 Goods Purchased 2300 27 Cash received 4410 Record payment on discount 4500 Discount taken 90 29 Sales a/c 90 goods sold returned 90 30 debtors a/c 3700 Sales

  • Accounts Receivable and Days Sales Outstanding

    198283 McDowell Industries: days' sales outstanding, average amount of AR, use of discount McDowell Industries sells on terms of 3/10, net 30.

  • Account Receivable-Gross method and Net Method of recording sales discount.

    104336 Account Receivable-Gross method and Net Method of recording sales discount. Explain Gross method and Net method of recording sales discount allowed to account receivables.

View More Related Solutions