EcoMart Merchandising uses the perpetual inventory system. EcoMart Merchandising sold fair trade merchandise for $1500, with credit terms n/30, invoice dated October, 1. The cost of merchandise is $900. The entries to book this transaction is as follows: OA. Dr. Accounts Receivable 1,500; Cr. Sales 1,500 Dr. Merchandise Inventory 1,500; Cr. Cost of Goods Sold 1,500 OB. Dr. Cash 1.500: Cr. Sales 1,500 Dr. Merchandise Inventory 900; Cr. Cost of Goods Sold 900 Oc. Dr. Sales 900; Cr. Accounts Receivable 900 Dr. Cost of Goods Sold 1,500; Cr. Merchandise Inventory 1,500 OD. Dr. Accounts Receivable 1,500; Cr. Sales 1,500 Dr. Cost of Goods Sold 900; Cr. Merchandise Inventory 900

EcoMart Merchandising uses the perpetual inventory system. EcoMart Merchandising sold fair trade merchandise for $1500, with credit terms n/30, invoice dated October, 1. The cost of merchandise is $900. The entries to book this transaction is as follows: OA. Dr. Accounts Receivable 1,500; Cr. Sales 1,500 Dr. Merchandise Inventory 1,500; Cr. Cost of Goods Sold 1,500 OB. Dr. Cash 1.500: Cr. Sales 1,500 Dr. Merchandise Inventory 900; Cr. Cost of Goods Sold 900 Oc. Dr. Sales 900; Cr. Accounts Receivable 900 Dr. Cost of Goods Sold 1,500; Cr. Merchandise Inventory 1,500 OD. Dr. Accounts Receivable 1,500; Cr. Sales 1,500 Dr. Cost of Goods Sold 900; Cr. Merchandise Inventory 900

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Description: EcoMart Merchandising uses the perpetual inventory system. EcoMart Merchandising sold fair trade merchandise for $1500, with credit terms n/30, invoice dated October, 1. The cost of merchandise is $900. Theentries to book this transaction is as foll

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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Can you help me explain how does it work? what is $5000 stand for and $2400 stand for? A 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. Complete the two journal entries to record the sales transaction by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns. The first journal entry is to record the revenue part of the transaction and the second journal entry is to record the cost part.
Journalize the following merchandise transactions: (If an amount box does not require an entry, leave it blank.) a. Sold merchandise on account, $12,900, with terms 2/10, net 30. The cost of the merchandise sold was $8,385. Sale Cost b. Received payment within the discount period.
A wholesaler sold merchandise inventory with in invoice price RO 16,000 to the customer of business and credit terms are 3/10, n/60. What is the amount payable to the wholesaler assuming that if the customer made the payment within the discount period? a. RO 480 b. RO 14,400 c. RO 16,000 d. RO 15,520
es ! Required information [The following information applies to the questions displayed below.] The following are the sales transactions of EcoMart Merchandising. EcoMart uses a perpetual inventory system and the gross method. October 1 Sold merchandise for $2,000, with credit terms n/30, invoice dated October 1. The cost of the merchandise is $1,150. October 6 The customer in the October 1 sale returned $200 of merchandise for full credit. The merchandise, which had cost $115, is returned to inventory. October 9 Sold merchandise for $950 cash. Cost of the merchandise is $650. October 30 Received payment for the amount due from the October 1 sale less the return on October 6. Use the above transactions, to analyze each transaction by indicating its effects on the components of the income statement- specifically, identify the accounts and amounts (including + or -) for each transaction. Income Statement Components Sales (gross) Sales discounts Sales returns and allowances Net sales Cost…
Prepare journal entries to record the following transactions for a retail store. The company uses a perpetual inventory system and the gross method. Apr. Apr. Apr. Apr. Apr. 2 Purchased $6,100 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point. Paid $280 cash for shipping charges on the April 2 purchase. Returned to Lyon Company unacceptable merchandise that had an invoice price of $650. Apr. 3 4 17 18 Apr. 21 28 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise. Purchased $11,500 of merchandise from Frist Corp. with credit terms of 1/10, n/30, invoice dated April 18, and FOB destination. After negotiations, received from Frist a $600 allowance toward the $11,500 owed on the April 18 purchase. Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount.
answer in text form please (without image), Note: .Every entry should have narration please
William & Company uses a perpetual inventory system. The following information is available for November: Nov. 1 4 7 10 (a) 12 Balance Purchase Purchase Sale Sale Nov. 12 Units Date Account Titles Nov. 4 20 40 40 (20) (50) Assume all sales and purchases are on credit. Purchase Sales Price Price Prepare journal entries to record the November 4 purchase and the November 12 sale using FIFO. (Credit account titles are automatically indented when the 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. List all debit entries before credit entries.) $5.00 $5.50 $9.00 (To record sales on account) (To record cost of goods sold) $8.00 $8.00 Debit Credit
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Travis Company purchased merchandise on account from a supplier for $12,300, terms 2/10, net 30. Travis Company paid for the merchandise within the discount period. Under a perpetual inventory system, record the journal entries required for the above transactions. If an amount box does not require an entry, leave it blank. a. b.
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3 Prepare Journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual inventory system and the gross method. August 1 Purchased merchandise from Aron Company for $7,000 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. August 5 Sold merchandise to Baird Corporation for $4,900 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost $3,000. August 8 Purchased merchandise from Waters Corporation for $6,000 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. August 9 Paid $260 cash for shipping charges related to the August 5 sale to Baird Corporation. August 10 Baird returned merchandise from the August 5 sale that had cost Lowe's $500 and was sold for $1,000. The merchandise was restored to inventory. August 12 After negotiations with Waters Corporation concerning problems with the purchases on August 8, Lowe's received a price reduction from Waters of…