The Dimitros Company records the following transactions during September 2018:Cash sales to customers totaling $6,800.Credit card sales to customers totaling $21,500. The credit card fee to the merchant is 3.0%. The credit card companies have paid all amounts due for September.A $3,000 sale on account to a long-time customer with terms of 2/10, n/30. The sale is made on September 5. The customer pays the invoice on September 14.A customer returns product they had purchased last month for $450. Dimitros accepts the return and gives the customer a cash refund.Calculate the following amounts:Service charge expense for credit card salesSales discount (contra-revenue) for sales on accountSales returns (contra-revenue)Gross sales revenueNet sales revenueNet cash collected from sales

Sales Revenue - Sales are recorded by company on cash and on credit basis. Cash collected is…

Answered: The Dimitros Company records the…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 11RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

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The Dimitros Company records the following transactions during September 2018:

Cash sales to customers totaling $6,800.
Credit card sales to customers totaling $21,500. The credit card fee to the merchant is 3.0%. The credit card companies have paid all amounts due for September.
A $3,000 sale on account to a long-time customer with terms of 2/10, n/30. The sale is made on September 5. The customer pays the invoice on September 14.
A customer returns product they had purchased last month for $450. Dimitros accepts the return and gives the customer a cash refund.

Calculate the following amounts:

Service charge expense for credit card sales
Sales discount (contra-revenue) for sales on account
Sales returns (contra-revenue)
Gross sales revenue
Net sales revenue
Net cash collected from sales

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