Answered: Create the journal entries for Bates to…

Name: On March 1, Bates Board Shop sells 300 surfboards to a local lifeguard
Uploaded: 2024-03-04T10:43:15.000Z
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Description: On March 1, Bates Board Shop sells 300 surfboards to a local lifeguard station at a sales price of $480 per board. The cost to Bates is $150 per board. The terms of the sale are 3/15, n/30, with an invoice date of March 1. Create the journal entries

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On March 1, Bates Board Shop sells 300 surfboards to a local lifeguard station at a sales price of $480 per board. The cost to Bates is $150 per board. The terms of the sale are 3/15, n/30, with an invoice date of March 1. Create the journal entries for Bates to recognize the following transactions. Assume the perpetual inventory system is used.

A. the initial sale

B. the subsequent customer payment on March 10

If an amount box does not require an entry, leave it blank.

Mar. 1
Accounts Receivable
Sales
Mar. 1 Cost of Goods Sold
Merchandise Inventory
Mar. 10 Cash
Sales Discounts
Accounts Receivable

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