ecording journal entries for net sales with credit sales and sales discounts. The following transactions were selected from the records of Evergreen Company July 12 Sold merchandise to Wally Butler, who paid the $1,000 purchase with cash. The goods cost Evergreen Company $600. July 15 Sold merchandise to Claudio’s Chair Company at a selling price of $5,000 on terms 3/10, n/30. The goods cost Evergreen Company $3,500. July 16 Sold merchandise to Otto’s Ottomans at a selling price of $3,000 on terms 3/10, n/30. The goods cost Evergreen Company $1,900. July 23 Received cash from Claudio’s Chair Company for the amount due from July 15. July 31 Received cash from Otto’s Ottomans for the amount due from July 16. Required: Prepare journal entries to record the transactions, assuming Evergreen Company records discounts using the net method in a perpetual inventory system. Forfeited discounts are recorded as Other Revenue. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Record the sale of merchandise for $1,000 cash to Wally Butler. Record the cost of goods sold to Wally Butler at $600. Record the sale of merchandise for $5,000 to Claudio's Chair Company on terms 3/10, n/30. Record the cost of goods sold to Claudio's Chair Company at $3,500. Record the sale of merchandise for $3,000 to Otto’s Ottomans on terms 3/10, n/30. Record the cost of goods sold to Otto’s Ottomans at $1,900. Record the receipt of cash due from Claudio's Chair Company for the sale made on July 15. Record the receipt of cash due from Otto’s Ottomans for the sale made on July 16.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Recording journal entries for net sales with credit sales and sales discounts.

The following transactions were selected from the records of Evergreen Company

July 12	Sold merchandise to Wally Butler, who paid the $1,000 purchase with cash. The goods cost Evergreen Company $600.
July 15	Sold merchandise to Claudio’s Chair Company at a selling price of $5,000 on terms 3/10, n/30. The goods cost Evergreen Company $3,500.
July 16	Sold merchandise to Otto’s Ottomans at a selling price of $3,000 on terms 3/10, n/30. The goods cost Evergreen Company $1,900.
July 23	Received cash from Claudio’s Chair Company for the amount due from July 15.
July 31	Received cash from Otto’s Ottomans for the amount due from July 16.

Required:

Prepare journal entries to record the transactions, assuming Evergreen Company records discounts using the net method in a perpetual inventory system. Forfeited discounts are recorded as Other Revenue. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Record the sale of merchandise for $1,000 cash to Wally Butler.
Record the cost of goods sold to Wally Butler at $600.
Record the sale of merchandise for $5,000 to Claudio's Chair Company on terms 3/10, n/30.
Record the cost of goods sold to Claudio's Chair Company at $3,500.
Record the sale of merchandise for $3,000 to Otto’s Ottomans on terms 3/10, n/30.
Record the cost of goods sold to Otto’s Ottomans at $1,900.
Record the receipt of cash due from Claudio's Chair Company for the sale made on July 15.
Record the receipt of cash due from Otto’s Ottomans for the sale made on July 16.

Expert Solution

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Financial Reporting in Hyperinflationary Economies

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions