Please Answer, Will rate! Exercise 1 - Reporting net sales and cost of goods sol
ID: 2540193 • Letter: P
Question
Please Answer, Will rate!
Exercise 1 - Reporting net sales and cost of goods sold: Alon Inc. made the following transactions in 2018. Record the effect of each transaction on the accounts provided in the table below. Assume that all returned merchandise is considered obsolete and cannot be resold January 5, 2018 Sold 10 pairs of shoes to customer A for S120 each. The credit terms are 2/15 n/45. The cost of the shoes was $700 ($70 per shoe) January 7, 2018 Sold one pair of shoes to customer B for S150 in cash. Customer B paid additional $3 sales tax. The cost of the shoes was $80 January 15, 2018 January 17, 2018 January 20, 2018 Customer A returned 3 pairs of shoes Customer A paid the amount he owed in cash. Sold 2 pairs of shoes to customer C for $280 in cash. The price also includes free shipping to the customer's home. The cost of the shoes was $120. Shipping cost was $14. March 22,2018 Sold 5 pairs of shoes for $500 to customer D. Customer D paid with a Visa credit card. Visa charges a 2% transaction fee. The cost of the shoes was $220 December 31, 2018Alon Inc. expects that merchandise at the amount of $170 sold in 2018 will be returned in 2019Explanation / Answer
Table is as prepared below:
Date Gross Revenues Contra Revenues Net Revenues Cost of goods sold Gross Profit 2018 Jan-05 1200 0 1200 700 500 Jan-07 150 0 150 80 70 Jan-15 0 360 -360 -210 -150 Jan-17 16.8 -16.8 -16.8 Jan-20 266 266 120 146 Mar-22 500 500 220 280 Dec-31 2116 376.8 1739.2 910 829.2