Explain how you located the relevant guidance

Assignment Help Accounting Basics
Reference no: EM132699185

Question - Early Payment Discount - Jones Equipment is a private company that sells and installs HVAC systems. Jones offers payment term of 2/10, n/30 where customers making payment within 10 days of installation will receive a discount of 2% off the purchase price or must pay the full balance due within 30 days. Jones has just received payment from a new customer who paid within the 10-day window and is thus entitled to the 2% discount. The gross sales price of the equipment and installation, before discount, was $10,000. This discount will not result in a loss to Jones on the sale of the product and service. Jones need your help to determine when the 2% early-payment discount should be recognized and how it should be recorded - for example, as a reduction in revenue or as a cost of sales?

Required -

1. Citing from the guidance support, show the approximate journal entries that Jones would make upon installation of the equipment and upon receipt of customer payment.

2. Explain how you located the relevant guidance, including the search method used and which section you searched within the appropriate topic.

Reference no: EM132699185

Questions Cloud

Find an business related article : What your top three takeaways are from this article. As a supervisor or manager, how would you apply these points?
Calculate the accounting break-even point : We are evaluating a project that costs $975,000, has a life of 7 years, and has no salvage value. Assume that depreciation is straight-line to zero over
Post the entries to the General Ledger accounts : Henry wants to adjust for a $660 balance both owing to, and owed by, L. Lester. Post the entries to the General Ledger accounts
Post a listing of a job ad for a nonaccounting job : Post a listing of a job ad for a nonaccounting job for which some knowledge of accounting is preferred or necessary. Provide a brief summary of salary
Explain how you located the relevant guidance : Explain how you located the relevant guidance, including the search method used and which section you searched within the appropriate topic
Identify common components of grant proposal : Identify the common components of a grant proposal. In your opinion, which two components are the most important, and why?
Prepare the journal entry needed for regina to properly : On February 1, 2020, Regina Company issued 1,000 shares. Prepare the journal entry needed for Regina to properly record this transaction.
Supply chain management : Create a executive summary explaining to your staff the significant of stocking, placing timely orders, and provide a step by step method
What is the cash break-even quantity : A project has the following estimated data: price = $75 per unit; variable costs = $35.25 per unit; fixed costs = $5,700; required return = 17 percent

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much would be willing to pay for series of cash flows

How much would be willing to pay for series of cash flows,If interest rates are 5 percent per year, how much would you be willing to pay for this series of cash

  Prepare a trial balance for each fund

(Journal entries for three Agency Funds and a trial balance for each fund) Assume that the Town of Boonsville maintains an Agency Fund for its employees.

  Explain two ways organisations can use corporate disclosure

Explain two ways organisations can use corporate disclosure policy to maintain or regain organisational legitimacy? What is a social contract

  Compute the variable cost per unit

Spears Music, Inc. produces a hip-hop CD that is sold for $15. The contribution margin ratio is 40%. Compute the variable cost per unit

  Prepare a brief explanation of the possible causes

Prepare a brief explanation of the possible causes of each variance.

  What would be the monthly payment

What would be the monthly payment, if the person decided to borrow 90% of the cost of the house and 100% of the processing fees

  What is the balance that would be reported for owner equity

What is the balance that would be reported for owner's equity at December 31, 2008? What are total current assets at December 31, 2008

  How company plans to accommodate for the decrease in sales

In 2012, Barney and Co. saw a decrease in sales of 20%. The company had also recently purchased equipment to increase productivity.

  Crow co purchased some of the machinery of hare inc a

crow co. purchased some of the machinery of hare inc. a bankrupt competitor at a liquidation sale for a total cost of

  What is the cost of goods manufactured

Overhead charges for depreciation, insurance, utilities, and maintenance totaled $600,000 for July. What is the cost of goods manufactured

  Discuss what circumstances would motivate grackle

What circumstances would motivate Grackle to do so. Draft a letter to Helen Carlon, Grackle's controller

  Make an incremental analysis schedule

Bieber Company has offered to sell Bowie 20,000 units of wheel sets for $10 per unit. Make an incremental analysis schedule to demonstrate

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd