What was the amount of cash that the craft shop paid

Assignment Help Financial Accounting

Reference no: EM131264063

The following events pertain to The Craft Shop, which began operations in October 2014. The company uses the perpetual inventory method.

1) October 1 Issued common stock to investors for $15,000

2) October 2 Purchased $12,000 of inventory on account with terms 2/10, n/30

3) October 3 Sold on account for $18,000 merchandise that had cost $10,000: terms 1/10, n/30

4) October 4 Returned defective merchandise with list price of $1,000 from Oct. 2 purchase

5) October 5 Paid freight of $100 on goods sold to customers, FOB destination

6) October 10 Paid the amount due on the merchandise purchased Oct. 2

7) October 12 Received cash from customer in settlement of Oct. 3 sale

Required:

a. What was the amount of cash that The Craft Shop paid on October 10?

b. What was the amount of cash that The Craft Shop collected on October 12?

c. What was the balance in The Craft Shop's cash account at the end of the day on October 12?

Reference no: EM131264063

Questions Cloud

Using the profit-volume chart constructed in part : For the coming year, Loudermilk Inc. anticipates fixed costs of $600,000, a unit variable cost of $75, and a unit selling price of $125. The maximum sales within the relevant range are $2,500,000. Estimate the break-even sales (units) by using the pr..

Describe the communication process : Describe the communication process. - Why is understanding the target market a crucial aspect of the communication process?

Taylorism and toyotas version of lean : Why is management accounting in practice pulled between Taylorism and Toyota's version of Lean? What research evidence is there that the slack built into the TPS version of Lean is an essential part of long term success and should not be confused ..

Explain the goals of promotion : Why might a marketing manager choose to promote his or her product using persuasion? Give some current examples of persuasive promotion.

What was the amount of cash that the craft shop paid : The following events pertain to The Craft Shop, which began operations in October 2014. The company uses the perpetual inventory method. What was the amount of cash that The Craft Shop paid on October 10? What was the balance in The Craft Shop's cash..

Write a promotional plan : Write a promotional plan explaining your choice of promotional mix elements given the nature of the product, the stage in the product life cycle, the target market characteristics, the type of buying decision, available funds, and the use of a pul..

Discuss the aida concept : Discuss the AIDA concept. - How do these different stages of consumer involvement affect the promotional mix?

Detail any issues concerning audit with this fact pattern : White Oak introduced additional items for sale in the prior year. White Oak uses a moderate strategy for allowing patrons to return items. White Oak permits retail purchasers to return items within ninety days from the date of sale. Detail any issues..

Discuss the concept of integrated marketing communications : Discuss the concept of integrated marketing communications. - Give some current examples of companies that are and are not practicing IMC.

User Account

All Pages