Garfunkle Company had the following four transactions during January 2017: January 3 Purchased 200 hair dryers from Hot Aire Corporation for $30 each, terms n/30. 5 Sold 50 hair dryers purchased on January 3 for $50 each, terms n/30. 15 Returned five of the hair dryers purchased on January 3 because they were defective. 22 A customer returned two hair dryers purchased on January 5 because they were defective. Given the information above, with the perpetual inventory system, the entry to record the January 5 transaction would include Oa. a debit to cost of goods sold of $1,500. Ob. a credit to Inventory of $1.500. Os, a debit to accounts receivable of $2,500.
Garfunkle Company had the following four transactions during January 2017: January 3 Purchased 200 hair dryers from Hot Aire Corporation for $30 each, terms n/30. 5 Sold 50 hair dryers purchased on January 3 for $50 each, terms n/30. 15 Returned five of the hair dryers purchased on January 3 because they were defective. 22 A customer returned two hair dryers purchased on January 5 because they were defective. Given the information above, with the perpetual inventory system, the entry to record the January 5 transaction would include Oa. a debit to cost of goods sold of $1,500. Ob. a credit to Inventory of $1.500. Os, a debit to accounts receivable of $2,500.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Garfunkle Company had the following four transactions during January 2017:
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