40) On February 27, 20X9, Best Appliances Ever agreed to sell 60 refrigerators to a local home construction company. The sales contract stated that the normal selling price of the refrigerators was $500 each, but a 4% trade discount was given due to the size of the order. The terms of the sales are 2/10, n/30. The refrigerators are to be delivered on March 20, 20X9. The invoice was dated March 20, 20X9. The customer paid the appropriate amount on March 28.
A. What is the gross revenue that Best Appliances Ever should recognize for the month ending March 31, 20X9?
B. What is the net revenue that Best Appliances Ever should recognize for the month ending March 31, 20X9?
41) The following information pertains to results obtained during the month of October 20X9 for Hawkins Hearing Center:
Sales Returns and Allowances $ 21,000
Gross Sales 720,000
Cash Discounts on Sales 15,000
Of the gross sales, $245,000 were sales made to customers who used their bank cards. The bank card company charged Hawkins Hearing Center a 3% fee.
Prepare the revenue section of the income statement for Hawkins Hearing Center for the month ended October 31, 20X9.
42) Our House is a manufacturer of furniture. On June 16, 20X9, Our House received an order from Old Fashioned, Inc., for 15 living room sets at $1,500 per set. The furniture was delivered by Our House to Old Fashioned, Inc., on June 30, 20X9, at which time Our House billed Old Fashioned under the terms 2/30, n/60. Old Fashioned, Inc., paid Our House on July 25. Assume Our House uses a periodic inventory system.
Prepare the appropriate journal entries for Our House as of the following dates:
a. June 16
b. June 30
c. July 25