ABC Corporation sold merchandise worth $10,000 on credit with payment terms of 60 days. The cost of the merchandise sold was $6,000. The company uses the perpetual inventory system. Prepare the journal entries to record the sale and subsequent collection after 40 days.
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ABC Corporation sold merchandise worth $10,000 on credit with payment terms of 60 days. The cost of the merchandise sold was $6,000. The company uses the perpetual inventory system. Prepare the
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- Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc. A. On October 3, Sewing Masters Inc. purchases 800 yards of fabric (Fabric Inventory) at $9.00 per yard from a supplier, on credit. Terms of the purchase are 1/5, n/40 from the invoice date of October 3. B. On October 8, Sewing Masters Inc. purchases 300 more yards of fabric from the same supplier at an increased price of $9.25 per yard, on credit. Terms of the purchase are 5/10, n/20 from the invoice date of October 8. C. On October 18, Sewing Masters pays cash for the amount due to the fabric supplier from the October 8 transaction. D. On October 23, Sewing Masters pays cash for the amount due to the fabric supplier from the October 3 transaction.Review the following transactions and prepare any necessary journal entries for Lands Inc. A. On December 10, Lands Inc. contracts with a supplier to purchase 450 plants for its merchandise inventory, on credit, for $12.50 each. Credit terms are 4/15, n/30 from the invoice date of December 10. B. On December 28, Lands pays the amount due in cash to the supplier.Prepare journal entries for the following sales and cash receipts transactions. (a) Merchandise is sold on account for 300 plus 3% sales tax, with 2/10, n/30 cash discount terms. (b) Part of the merchandise sold in transaction (a) for 70 plus sales tax is returned for credit. (c) The balance on account for the merchandise sold in transaction (a) is paid in cash within the discount period.
- ABC Corporation sold merchandise worth $10,000 on credit with payment terms of 60 days. The cost of the merchandise sold was $6,000. The company uses the perpetual inventory system. Prepare the journal entries to record the sale and subsequent collection after 40 days.XYZ Company purchased inventory worth $50,000 on credit with payment terms of 30 days. The company uses the perpetual inventory system. Calculate the journal entry to record the purchase and subsequent payment after 20 days, assuming a 5% cash discount is offered for early payment.Hell Ltd. sold merchandise for $20,000 on credit. The cost of merchandise sold was $11,900. The journal entries to record this transaction under the perpetual inventory system would be
- Use the following transaction to answer the all of the questions. A company purchases inventory on credit for $80.000. Inventory costing $30,000 is sold on credit for $40,000. The applicable HST rate is 13% on sales and purchases. HST are remitted at the end of the month. What does the journal entry look like for the purchase of inventory using the periodic inventory system? Credit Purchases $30,000, Credit HST Payable $3,900, Credit, A/P the rest Debit Purchases $30,000, Debit HST Recoverable $3,900, Credit A/P the total of the 2 debits Credit Purchases $80,000, Credit HST Payable $10,400, Credit, A/P the rest Debit Purchases $80,000, Debit HST Recoverable $10,400, Credit, A/P the total of the 2 debitsA seller uses a perpetual inventory system and on April 4 it sells $5,000 in merchandise with a cost of $2,400 to a customer on credit terms of 3/10, n/30.Prepare journal entries for the following credit card sales transactions (the company uses a perpetual inventory system) Sold $32,000 of merchandise, which cost $24,600, on MasterCard credit cards. MasterCard charges a 5% fee
- EZ Curb Company completed the following transactions. The annual accounting period ends December 31. Jan. 8 Purchased merchandise on account at a cost of $19,000. (Assume a perpetual inventory system.) 17 Paid for the January 8 purchase. Apr. 1 Received $48,000 from National Bank after signing a 12-month, 11.0 percent, promissory note. June 3 Purchased merchandise on account at a cost of $23,000. July 5 Paid for the June 3 purchase. Aug. 1 Rented out a small office in a building owned by EZ Curb Company and collected six months’ rent in advance, amounting to $9,000. (Use an account called Unearned Revenue.) Dec. 20 Collected $200 cash on account from a customer. Dec. 31 Determined that wages of $8,500 were earned but not yet paid on December 31 (Ignore payroll taxes). Dec. 31 Adjusted the accounts at year-end, relating to interest. Dec. 31 Adjusted the accounts at year-end, relating to rent. Required: 1. For each…On June 21, Marble Company purchased goods from Steel Company for $30,000, terms 2/10, n/30. The invoice was paid on June 27. The company uses a perpetual inventory system and records purchases gross. The June 27 journal entry to record payment of the account would include: Select one: a credit to Cash for $30,000. a credit to Inventory for $600. a credit to Purchases Discounts for $600. a debit to Accounts Payable for $29,400.On June 5, Staley Electronics purchases 200 units of inventory on account for $19 each, with terms 2/10, n/30. Staley pays for the inventory on June 12. Required: 1. Record transactions for the purchase of inventory and payment on account using a perpetual system. 2. Now assume payment is made on June 22. Record the payment on account.
