Costume Warehouse sells costumes and accessories. May 3 A customer purchases 55 costumes at a sales price of $30 per costume. The cost to Costume Warehouse per costume is $18. The terms of the sale are 3/15, n/60, with an invoice date of May 3. May 10 The customer who made the May 3 purchase returns 5 of the costumes to the store for a full refund, claiming they were the wrong size. The costumes were returned to Costume Warehouse's inventory at $18 per costume. May 16 The customer pays in full for the remaining costumes, less the return. Assume the perpetual and periodic methods are used.
Costume Warehouse sells costumes and accessories. May 3 A customer purchases 55 costumes at a sales price of $30 per costume. The cost to Costume Warehouse per costume is $18. The terms of the sale are 3/15, n/60, with an invoice date of May 3. May 10 The customer who made the May 3 purchase returns 5 of the costumes to the store for a full refund, claiming they were the wrong size. The costumes were returned to Costume Warehouse's inventory at $18 per costume. May 16 The customer pays in full for the remaining costumes, less the return. Assume the perpetual and periodic methods are used.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Costume Warehouse sells costumes and accessories.
May 3
A customer purchases 55 costumes at a sales price of $30 per costume. The cost to Costume
Warehouse per costume is $18. The terms of the sale are 3/15, n/60, with an invoice date of
May 3.
May 10 The customer who made the May 3 purchase returns 5 of the costumes to the store for a full
refund, claiming they were the wrong size. The costumes were returned to Costume
Warehouse's inventory at $18 per costume.
May 16 The customer pays in full for the remaining costumes, less the return.
Assume the perpetual and periodic methods are used.
A. Review the above transactions and prepare the journal entries if Costume Warehouse uses the perpetual inventory system. If an amount box does not require an entry, leave it blank.
May 3 Sales
Accounts Receivable
1,650
Sales
1,650
May 3 Cost of sale
Cost of Goods Sold
066
Merchandise Inventory
990
May 10 Sales return
Sales Returns and Allowances
150
Accounts Receivable
150
May 10 Merchandise to inventory Merchandise Inventory
90
Cost of Goods Sold
90
May 16
Sales Discount
45
Cash
1,455
Accounts Receivable
1,500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5a8da5b2-6ded-413c-9ecd-d81425a9892b%2F39424d13-3b3c-43ad-a06f-1c2cf1c7ae1b%2Fna4w4w5_processed.png&w=3840&q=75)
Transcribed Image Text:Costume Warehouse sells costumes and accessories.
May 3
A customer purchases 55 costumes at a sales price of $30 per costume. The cost to Costume
Warehouse per costume is $18. The terms of the sale are 3/15, n/60, with an invoice date of
May 3.
May 10 The customer who made the May 3 purchase returns 5 of the costumes to the store for a full
refund, claiming they were the wrong size. The costumes were returned to Costume
Warehouse's inventory at $18 per costume.
May 16 The customer pays in full for the remaining costumes, less the return.
Assume the perpetual and periodic methods are used.
A. Review the above transactions and prepare the journal entries if Costume Warehouse uses the perpetual inventory system. If an amount box does not require an entry, leave it blank.
May 3 Sales
Accounts Receivable
1,650
Sales
1,650
May 3 Cost of sale
Cost of Goods Sold
066
Merchandise Inventory
990
May 10 Sales return
Sales Returns and Allowances
150
Accounts Receivable
150
May 10 Merchandise to inventory Merchandise Inventory
90
Cost of Goods Sold
90
May 16
Sales Discount
45
Cash
1,455
Accounts Receivable
1,500
![B. Review the above transactions and prepare the journal entries if Costume Warehouse uses the periodic inventory system. If an amount box does not require an entry, leave it blank.
May 3
May 10
May 16](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5a8da5b2-6ded-413c-9ecd-d81425a9892b%2F39424d13-3b3c-43ad-a06f-1c2cf1c7ae1b%2Fyhk0oa_processed.png&w=3840&q=75)
Transcribed Image Text:B. Review the above transactions and prepare the journal entries if Costume Warehouse uses the periodic inventory system. If an amount box does not require an entry, leave it blank.
May 3
May 10
May 16
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