Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. best equipment sales (best) started year 2 with $1

Best Equipment Sales (BESt) started Year 2 with $14,640 cash, $65,360 inventory, $50,000 common stock...

80.2K

Verified Solution

Question

Accounting

Best Equipment Sales (BESt) started Year 2 with $14,640 cash, $65,360 inventory, $50,000 common stock and $30,000 retained earnings. During Year 2, BESt experienced the following events:

  • Feb 1, BESt recognized $59,000 of revenue on account from the sale of merchandise which had a cost of $45,000. Merchandise was sold with terms 1/10, n/30, FOB destination. Freight costs of $1,400 were paid in cash by the responsible party.
  • Feb 3, BESt received returned merchandise from a customer with a list price of $3,000 and a cost of $2,000.
  • Feb 5, BESt collected payments for half of the outstanding merchandise sold on account.
  • Feb 10, BESt paid cash of $9,000 for selling and administrative expenses.
  • Feb 20, BESt collected payments for the remaining outstanding merchandise sold on account.

What is the dollar value of the discount taken on Feb 5?

What is the value of Net Sales for Year 2?

What is the value of Cost of Goods Sold on the Year 2 Income Statement?

What is the value of Net Income on the Year 2 Income Statement?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students