Accounting

during 2016 bava corporation sold merchandise for a total of 600000 the cost of merchandise to bava was $450000 bava offers credit terms of 1/10, n/30 to encourage early payment. at year end there are $15000 of sales still eligible for the 1% discount. Bava believes that all of the companies will pay within the discount period to receive the 1% discount assume bava's fiscal year is Dec 3
bava adjusting journal entry will include:
a) a debit to sales discounts for 150
b) a credit to allowance for sales discounts for 1500
c)a debit to sales discounts for 150
d) no adjusting journal entry is required

  1. 👍
  2. 👎
  3. 👁

Respond to this Question

First Name

Your Response

Similar Questions

  1. Accounting

    A company using the periodic inventory system has the following account balances: Merchandise Inventory at the beginning of the year, $4,000; Transportation-In, $450; Purchases, $12,000; Purchases Returns and Allowances, $2,300;

  2. English

    Identify the sentence that is correctly punctuated. A. When the police recover the lost merchandise—a diamond bracelet, they will notify you. B. When the police recover the lost merchandise (a diamond bracelet), they will notify

  3. Acct

    journalize the following merchandise transactions, using the net method under a perpetual inventory system. a. Sold merchandise on account, $24,600 with terms 1/10, n/30. The cost of the goods sold was $14,760. If an amount box

  4. math

    A sales clerk receives a monthly salary of $800 plus a commission of 7%on all sales over $3000. What did the clerk earn the month that he sold $⁢13,300 in merchandise?

  1. Accounting

    Jack Smith, a baker, has been working at his friend’s bakery a part time basis for the past 3 years. As of January 1, 2018, Jack decided to pursue his own dreams of buying and selling pastries. He rented a space from his friend

  2. accounting

    Fill in the blanks in the following separate income statements a through e. Identify any negative amount by putting it in parentheses. a b c d e Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $60,000

  3. accounting

    Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. Halifax only makes credit sales. The company began 2013 with an allowance for

  4. accounting

    A company purchased $4,000 worth of merchandise. Transportation costs were an additional $350. The company later returned $250 worth of merchandise and paid the invoice within the 2% cash discount period. What is the total amount

  1. mathmatics

    A salesman earns 20% commission on all the merchandise that he sells. Last month he sold $800 worth of merchandise. How much commission (in dollars) did he earn last month?

  2. Accounting

    Redmon Company uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general journal. The following transactions occur in the month of June. June 1 Purchased $8,100 of merchandise

  3. English grammar

    Identify the sentence that is correctly punctuated. options: A) When the police recover the lost merchandise—a diamond bracelet, they will notify you. B) When the police recover the lost merchandise (a diamond bracelet), they

  4. economics

    Question.1 Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per year to rent the location and buy the stock. In addition, she would have to quit her $50,000 per year job as an

You can view more similar questions or ask a new question.