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  • State College Technology Store Scts Is A Retail Computer Store

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    Amit Pandey
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    State College Technology Store (SCTS) is a retail computer store located in a large midwestern university. In November, SCTS purchased 20 laptops for $16,000 on account and sold 4 laptops to the university for $4,800 on account. In December, SCTS paid its account payable of $16,000 and collected its account receivable of $4,800. Using accrual accounting, SCTS' net income was $3,800 but using cash basis accounting, its net income was $0 due to timing differences of payments and receipts.

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    State College Technology Store (SCTS) is a retail computer store located in a large midwestern university. In November, SCTS purchased 20 laptops for $16,000 on account and sold 4 laptops to the university for $4,800 on account. In December, SCTS paid its account payable of $16,000 and collected its account receivable of $4,800. Using accrual accounting, SCTS' net income was $3,800 but using cash basis accounting, its net income was $0 due to timing differences of payments and receipts.

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    18 views1 page

    State College Technology Store Scts Is A Retail Computer Store

    Uploaded by

    Amit Pandey
    State College Technology Store (SCTS) is a retail computer store located in a large midwestern university. In November, SCTS purchased 20 laptops for $16,000 on account and sold 4 laptops to the university for $4,800 on account. In December, SCTS paid its account payable of $16,000 and collected its account receivable of $4,800. Using accrual accounting, SCTS' net income was $3,800 but using cash basis accounting, its net income was $0 due to timing differences of payments and receipts.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    State College Technology Store SCTS is a retail computer

    store
    State College Technology Store (SCTS) is a retail computer store in the university center of a
    large mid-western university. SCTS engaged in the following transactions during November of
    the current year:Nov. 1 Purchased 20 Nopxe laptop computers on account from Led Inc. The
    laptop computers cost $800 each, for a total of $16,000. Payment is due in 30 days.Nov. 6 Sold
    four Nopxe laptop computers on account to the Department of Microbiology at State College at
    a retail sales price of $1,200 each, for a total of $4,800. Payment is due in 30 days.Dec. 1 Paid
    the $16,000 account payable to Led Inc.Dec. 6 Collected the $4,800 account receivable from
    State College’s Department of Microbiology.Assume that the other expenses incurred by SCTS
    during November and December were $1,000, and assume that all of these expenses were
    paid in cash. SCTS is not subject to income tax because it is a wholly-owned unit of a nonprofit
    organization. Compute the net income of SCTS during November and December using accrual
    accounting principles. Also, compute what SCTS’s net income would have been had it used the
    cash basis of accounting. Explain the difference.View Solution:
    State College Technology Store SCTS is a retail computer store
    SOLUTION-- http://solutiondone.online/downloads/state-college-technology-store-scts-is-a-retail-
    computer-store/

    Unlock answers here solutiondone.online


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