a. Express Company sold goods for $20,000 to NorthwoodCompany on March 12 on credit. Terms of the sale were 2/10,n/30. At the time of the sale, Express recorded thetransaction by debiting accounts receivable for $20,000 andcrediting sales revenue for $20,000. Northwood paid thebalance due on March 20. To record the March 20 transaction,Express would debit cash and sale discount how much?
b. A company had the following partial listof account balances at year-end:
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Sales Returns and Allowances
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$ 1,000
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Accounts Receivable
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38,000
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Sales Discounts (a contra- account)
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2,100
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Sales Revenue
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95,000
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Allowance for Doubtful Accounts
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1,200
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The amount of Net Sales shown on the income statement would be?
c. When credit terms for a sale are 2/15, n/40,the customer saves by paying the bill early. Approximatelywhat percent would this savings amount to on an annualbasis?
d. Genentech, which is a biotechnology firm, reported thefollowing revenues on their 2004 income statement; product sales$10,550 million. Their cost of sales was reported as $1,731million. What was their gross profit percentage?