Bramble Corp, which uses a perpetual inventory system and charges 8% interest on the balance due if not paid within the payment terms and has an estimated return rate of 12%, sells merchandise on account to two customers: The first customer was Vertigo Inc. where Bramble sold $1.800 worth of merchandise on August 1. terms n/30. The goods had cost Bramble $900. On October 1 Vertigo paid the entire balance due. The second customer was Notorious Limited where Bramble sold $2.800 worth of merchandise on August 2, terms n/30. The goods had cost Bramble $1,400. On August 6, Notorious returned merchandise worth $560 to Bramble. This merchandise had a cost of $280 and there was nothing wrong with the merchandise. On August 11, Bramble received payment from Notorious for the balance due. Assuming that Bramble Corp. prepares adjusting entries on a monthly basis, prepare the appropriate journal entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries)
Bramble Corp, which uses a perpetual inventory system and charges 8% interest on the balance due if not paid within the payment terms and has an estimated return rate of 12%, sells merchandise on account to two customers: The first customer was Vertigo Inc. where Bramble sold $1.800 worth of merchandise on August 1. terms n/30. The goods had cost Bramble $900. On October 1 Vertigo paid the entire balance due. The second customer was Notorious Limited where Bramble sold $2.800 worth of merchandise on August 2, terms n/30. The goods had cost Bramble $1,400. On August 6, Notorious returned merchandise worth $560 to Bramble. This merchandise had a cost of $280 and there was nothing wrong with the merchandise. On August 11, Bramble received payment from Notorious for the balance due. Assuming that Bramble Corp. prepares adjusting entries on a monthly basis, prepare the appropriate journal entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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Qc 1
Transcribed Image Text:Bramble Corp, which uses a perpetual inventory system and charges 8% interest on the balance due if not paid within the payment
terms and has an estimated return rate of 12%, sells merchandise on account to two customers
The first customer was Vertigo Inc. where Bramble sold $1,800 worth of merchandise on August 1. terms n/30. The goods had cost
Bramble $900. On October 1 Vertigo paid the entire balance due.
The second customer was Notorious Limited where Bramble sold $2,800 worth of merchandise on August 2, terms n/30. The goods
had cost Bramble $1,400. On August 6, Notorious returned merchandise worth $560 to Bramble. This merchandise had a cost of $280
and there was nothing wrong with the merchandise. On August 11, Bramble received payment from Notorious for the balance due.
Assuming that Bramble Corp. prepares adjusting entries on a monthly basis, prepare the appropriate journal entries. (Credit account
titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the
problem. List all debit entries before credit entries.)
Account Titles and Explanation
Accounts Receivable
Date
Aug. 1
Debit
1800
000
Credit
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