Accounting: Matching Definitions for Sales, Purchase, and Trade

School: Jefferson Community and Technical College - Course: ART MISC - Subject: Accounting

Accounting Question 1 Match the following with the best corresponding definition Sales allowance-A customer pays their account in full within the discount window Purchase returns-A customer returns merchandise for full refund Sales discount- A retailer pays their account in full within the discount window Purchase discount -A customer pays their account in full within the discount window Sales return-A customer receives a partial refund but keeps the defective merchandise Trade discount-A type of purchase discount negotiated between a manufacturer and retailer before settlement of final price Purchase allowance-A retailer receives partial payment but keeps the defective merchandise Q1 b a) Net sale Sales discount$58,040 Sales returns and allowance$90,232 =$148272 b) Statement income for the year ending 31,2019 RevenuesDebitCredit Sales and discounts$58,040 Sales return and allowance$90,232 Interest Revenues$10,232 Accounts payable$135,404 3 Common stock$59,419 Rent revenue$23,622 Accounts Receivable$100,440 Net income=$341,985 Cost of goods sold$224,598 =$360,002 Beginning inventory December, 2019 Expenses Interest expenses$ 3,677 Depreciation expenses. Office equipment$3,200 Insurance expenses$2,450 Advertising expenses$12,906 Rent expense$ 15,080 Marketing expenses$31,000 Sales and salaries$30,410 Office supplies expenses$1,600 =$100,323 Question 2 Net purchase and Cost of goods from Mass Corp for the beginning of the Month of March 4 CostDebitCredit Sales discountsSales Purchase discount Purchase returns andallowance Gross income Cost of good purchase 34,660 276,900 12,450 =22,210 23,870 =253,030 120,400 253,030+22,210=255,240 Question 3 Perpetual inventory Item purchasedItem sold DateDescriptioncostTotalcostcostTotal cost April,520 bicycles$250per2500100per$2000