Sims Company regularly provides services to Lauber

Supply on terms #2352

Sims Company regularly provides services to Lauber Supply on terms 1/15, n/30 and records
sales at gross. During a recent month, the two firms engaged in the following transactions:a.
Sims provided services with a list price of $85,000.b. Sims provided services with a list price of
$30,000.c. Lauber paid for the purchase in transaction a within the discount period.d. Lauber
paid for the purchase in transaction b after the discount period.Required:1. Prepare the journal
entries for Sims to record the sales in a and b (make separate entries).2. Prepare the journal
entry to record Lauber’s payment in c.3. Prepare the journal entry to record Lauber’s payment
in d.4. What implied annual interest rate is Lauber incurring by failing to take the sales discount
and, instead, paying the gross amount after 30 days?View Solution:
Sims Company regularly provides services to Lauber Supply on terms

ANSWER
http://paperinstant.com/downloads/sims-company-regularly-provides-services-to-lauber-supply-
on-terms/

1/1
Powered by TCPDF (www.tcpdf.org)