2. Review the following sales transactions for Birdy Birdhouses and record any required journal entries. Aug. 10 Birdy Birdhouses sells 20 birdhouses to customer Julia Brand at a price of $70 each in exchange for cash. The cost to Birdy is $46 per birdhouse. Aug. 12 Birdy Birdhouses sells 30 birdhouses to customer Julia Brand at a price of $68 each on credit. The cost of sale for Birdy is $44 per birdhouse. Terms of the sale are 2/10, n/30, invoice date August 12. Aug. 14 Julia discovers 6 of the birdhouses are slightly damaged from the August 10 purchase and returns them to Birdy for a full refund. Julia also discovers that 10 of the birdhouses from the August 12 purchase are painted the wrong color but keeps them since Birdy granted an allowance of $24 per birdhouse. Aug. 20 Julia pays her account in full from the August 12 purchase, less any returns, allowances, and/or discounts.
2. Review the following sales transactions for Birdy Birdhouses and record any required journal entries. Aug. 10 Birdy Birdhouses sells 20 birdhouses to customer Julia Brand at a price of $70 each in exchange for cash. The cost to Birdy is $46 per birdhouse. Aug. 12 Birdy Birdhouses sells 30 birdhouses to customer Julia Brand at a price of $68 each on credit. The cost of sale for Birdy is $44 per birdhouse. Terms of the sale are 2/10, n/30, invoice date August 12. Aug. 14 Julia discovers 6 of the birdhouses are slightly damaged from the August 10 purchase and returns them to Birdy for a full refund. Julia also discovers that 10 of the birdhouses from the August 12 purchase are painted the wrong color but keeps them since Birdy granted an allowance of $24 per birdhouse. Aug. 20 Julia pays her account in full from the August 12 purchase, less any returns, allowances, and/or discounts.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:2. Review the following sales transactions for Birdy Birdhouses and record :
required journal entries.
any
Aug. 10 Birdy Birdhouses sells 20 birdhouses to customer Julia Brand at a price of $70
each in exchange for cash. The cost to Birdy is $46 per birdhouse.
Aug. 12 Birdy Birdhouses sells 30 birdhouses to customer Julia Brand at a price of $68
each on credit. The cost of sale for Birdy is $44 per birdhouse. Terms of the
sale are 2/10, n/30, invoice date August 12.
Aug. 14 Julia discovers 6 of the birdhouses are slightly damaged from the August 10
purchase and returns them to Birdy for a full refund. Julia also discovers that
10 of the birdhouses from the August 12 purchase are painted the wrong color
but keeps them since Birdy granted an allowance of $24 per birdhouse.
Aug. 20 Julia pays her account in full from the August 12 purchase, less any returns,
allowances, and/or discounts.
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