A seller uses a perpetual inventory system, and on April 17, a customer returns $1,000 of merchandise previously purchased on credit on April 13. The seller's cost of the merchandise returned was $480. The merchandise is not defective and is restored to inventory. The seller has not yet received any cash from the customer. **Journal Entry Instructions****Text Instructions:**"Prepare the second journal entry to record the cost part."**Note:**"Enter debits before credits."**Journal Entry Table:**- **Date:** - April 17- **Columns:** - General Journal - Debit - Credit The table provides space for multiple entries, each with a date and fields for the general journal, debit amounts, and credit amounts. Entries should reflect the transaction details, ensuring that debits are listed before credits for accurate accounting records.

Name: A seller uses a perpetual inventory system, and on April 17, a custom
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: A seller uses a perpetual inventory system, and on April 17, a customer returns $1,000 of merchandise previously purchased on credit on April 13. The seller's cost of the merchandise returned was $480. The merchandise is not defective and is restore

The simplest approach to maintain track of a business transaction is through journal entries. Since…

Business

Accounting

A seller uses a perpetual inventory system, and on April 17, a customer returns $1,000 of merchandise previously purchased on credit on April 13. The seller's cost of the merchandise returned was $480. The merchandise is not defective and is restored to inventory. The seller has not yet received any cash from the customer.

A seller uses a perpetual inventory system, and on April 17, a customer returns $1,000 of merchandise previously purchased on credit on April 13. The seller's cost of the merchandise returned was $480. The merchandise is not defective and is restored to inventory. The seller has not yet received any cash from the customer.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On March 6, Sarasota Company returned $83,900 of the merchandise purchased on March 2. The cost of the returned merchandise was $59,300. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (To record merchandise returned) (To record cost of merchandise returned)
Santa Fe Retailing purchased merchandise from Mesa Wholesalers with credit terms of 3/10, n/60 and an invoice price of $24,000. The merchandise had cost Mesa $16,000. Assume that both buyer and seller use a perpetual inventory system and the gross method. 1. Prepare entries that the buyer records for the (a) purchase, (b) cash payment within the discount period, and (c) cash payment after the discount period. 2. Prepare entries that the seller records for the (a) sale, (b) cash collection within the discount period, and (c) cash collection after the discount period. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare entries that the seller records for the (a) sale, (b) cash collection within the discount period, and (c) cash collection after the discount period. View transaction list Journal entry worksheet
Don't provide handwritten solution... On February 3, Smart Company sold merchandise in the amount of $2,100 to Kennedy Company, with credit terms of 1/10, n/30. The cost of the items sold is $1,450. Smart uses the perpetual inventory system and the gross method. Kennedy pays the invoice on February 8 and takes the appropriate discount. The journal entry that Smart makes on February 8 is: Multiple Choice Account Title Debit Credit Cash 1,450 Accounts Receivable 1,450 Account Title Debit Credit Cash 2,100 Accounts Receivable 2,100 Account Title Debit Credit Cash 2,020 Sales discounts 15 Accounts Receivable 2,035 Account Title Debit Credit Cash 1,370 Accounts Receivable 1,370 Account Title Debit Credit Cash 2,079 Sales discounts 21 Accounts Receivable 2,100
Prepare the necessary journal entries to record the following transactions, assuming Dakin Company uses a perpetual inventory system. (a) (b) (c) (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation (a) Purchased $35,000 of merchandise on account, terms 2/10, n/30. Returned $700 of damaged merchandise for credit. Paid for the merchandise purchased within 10 days. (b) (c) Debit Credit
Hider Company had a customer return merchandise purchased with cash with a sales price of $7,500. The cost of goods was $3,000. Hider refunded the cash to the customer. The journal entries to record the return, using the perpetual inventory system and assuming an adjusting entry was recorded for estimated sales returns would be:
Monty Company has the following account balances: Sales Revenue $240,400, Sales Discounts $3,510, Cost of Goods Sold $139,200, and Inventory $45,300.Prepare the entries to record the closing of these items to Income Summary under the perpetual inventory system. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit enter an account title to close accounts with credit balances enter a debit amount enter a credit amount enter an account title to close accounts with credit balances enter a debit amount enter a credit amount (To close accounts with credit balances) enter an account title to close accounts with debit balances enter a debit amount enter a credit amount enter an account title to close accounts with debit…
Pharoah Company sells merchandise on account for $3600 to Morton Company with credit terms of 2/14, n/30. Morton Company returns $600 of merchandise that was damaged, along with a check to settle the account within the discount period. What entry does Pharoah Company make upon receipt of the check? Cash 2940 Sales Returns and Allowances 600 Sales Discounts 60 Accounts Receivable 3600 Cash 2940 Sales Returns and Allowances 660 Accounts Receivable 3600 Cash 3000 Accounts Receivable 3000 Cash 3528 Sales Discounts 72 Sales Returns and Allowances 600 Accounts Receivable 3000
a. Sampson Co. sold merchandise to Batson Co. on account, $36,000, terms 2/15, net 45. b. The cost of the goods sold is $27,000. c. The Batson Co. paid the invoice within the discount period. Assume both Sampson and Batson use a perpetual inventory system. If no entry is required, select "No entry required" and leave the amount boxes blank. Prepare the entries that Sampson Company would record for the information above. If an amount box does not require an entry, leave it blank. a. b. С. Accounting numeric field Prepare the entries that Batson Company would record for the information above. If an amount box does not require an entry, leave it blank. а. b. a.
A buyer uses a perpetual inventory system, and it purchased. $4,000 of merchandise on credit terms of 2/10, n/30 on December 5. Later, on December 15, the buyer pays the invoice in full. Complete the buyer's journal entry for payment by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns. No 1 Date December 15 Sales Accounts receivable Answer is not complete. General Journal XX Debit 4,000✔ Credit
A seller uses a perpetual inventory system, and on April 4, it sells $5,000 in merchandise to a customer on credit terms of 3/10, n/30. On April 13, the seller receives payment from the customer. Note: Enter debits before credits. Date April 13 General Journal Debit Credit
1
Levine Company uses the perpetual inventory system. April 8 Sold merchandise for $3,400 (that had cost $2,513) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee. April 12 Sold merchandise for $8,400 (that had cost $5,443) and accepted the customer's Continental Card. Continental charges a 2.5% fee. Prepare journal entries to record the above credit card transactions of Levine Company. Note: Round your answers to the nearest whole dollar amount. View transaction list Journal entry worksheet > 1 2 3 4 Record the cost of goods sold, $5,443. Note: Enter debits before credits. Date General Journal Debit Credit April 12 Cost of goods sold Merchandise inventory