**Transaction Details for February****Feb. 3:** Purchased $2,600 of merchandise inventory on account under terms 3/10, n/EOM and FOB shipping point from Savvy's Garden.**Feb. 7:** Returned $300 of defective merchandise purchased on February 3.**Feb. 9:** Paid freight bill of $100 on February 3 purchase.**Feb. 10:** Sold merchandise inventory on account for $4,200 to Trinkett Topiaries. Payment terms were 2/15, n/30. These goods cost the company $2,100.**Feb. 12:** Paid amount owed on credit purchase of February 3, less the return and the discount.**Feb. 28:** Received cash from Trinkett Topiaries in full settlement of their debt.[Print Button] [Done Button]**Explanation of Terms:**- **3/10, n/EOM:** This means the buyer can take a 3% discount on the invoice price if they pay within 10 days; otherwise, the net (full) amount is due at the end of the month.- **FOB shipping point:** This means the buyer is responsible for the shipping costs and owns the goods in transit.- **2/15, n/30:** This means the buyer can take a 2% discount on the invoice price if they pay within 15 days; otherwise, the net (full) amount is due within 30 days.**Note:**The transactions exhibit significant actions within a company’s purchasing cycle and emphasize the importance of terms and conditions in managing cash flow and accounting records. Understanding these entries is essential for accurate bookkeeping and financial analysis. ### Journalizing Sales Transaction**Date:** February 10 **Description:** Sold merchandise inventory on account for $4,200 to Trinkett Topiaries. The payment terms are 2/15, n/30. These goods cost the company $2,100.**Instructions:** Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale; that will be done in the next step.#### Journal Entry| Date | Accounts | Debit | Credit ||------------|----------------------------------------|--------|--------|| Feb. 10 | Accounts Receivable—Trinkett Topiaries | $4,200 | || | Sales Revenue | | $4,200 |**Explanation of Table:**- **Date Column:** Lists the date of the transaction.- **Accounts Column:** Includes the accounts involved in the transaction.- **Debit Column:** Shows the amount debited.- **Credit Column:** Shows the amount credited.In this journal entry:- Accounts Receivable is debited for $4,200, which represents the amount owed by Trinkett Topiaries for the merchandise purchased.- Sales Revenue is credited for $4,200, representing the income generated from the sale.

Name: **Transaction Details for February****Feb. 3:** Purchased $2,600 of m
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Description: **Transaction Details for February****Feb. 3:** Purchased $2,600 of merchandise inventory on account under terms 3/10, n/EOM and FOB shipping point from Savvy's Garden.**Feb. 7:** Returned $300 of defective merchandise purchased on February 3.**Feb.

Introduction:A transaction is a business event that has a monetary effect on a company's financial…

Business

Accounting

Feb. 10: Sold merchandise inventory on account for $4,200 to Trinkett Topiaries. Payment terms were 2/15, n/30. These goods cost the company $2,100. Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following s Credit Date Accounts Debit Feb. 10 Accounts Receivable-Trinkett Topiaries Sales Revenue

Feb. 10: Sold merchandise inventory on account for $4,200 to Trinkett Topiaries. Payment terms were 2/15, n/30. These goods cost the company $2,100. Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following s Credit Date Accounts Debit Feb. 10 Accounts Receivable-Trinkett Topiaries Sales Revenue

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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