Griffin Shoe Company records Sales Returns and Allowances, Sales Discounts, and Credit Card Discounts as contra-revenues. July 12 Sold merchandise to customer at factory store who charged the $400 purchase on her American Express card. American Express charges a 2 percent credit card fee. Cost of goods sold was $275. July 15 Sold merchandise to Customer T at an invoice price of $4,000; terms 2/10, n/30. Cost of goods sold was $2,000. July 20 Collected cash due from Customer T. July 21 Before paying for the order, a customer returned shoes with an invoice price of $1,400; cost of goods sold was $840. Complete the following table by entering the amounts of the effects of each transaction, including the related cost of goods sold. (Indicate decreases with a minus sign.) Transaction Net Sales July 12 July 15 July 20 July 21 Cost of Goods Sold Gross Profit
Griffin Shoe Company records Sales Returns and Allowances, Sales Discounts, and Credit Card Discounts as contra-revenues. July 12 Sold merchandise to customer at factory store who charged the $400 purchase on her American Express card. American Express charges a 2 percent credit card fee. Cost of goods sold was $275. July 15 Sold merchandise to Customer T at an invoice price of $4,000; terms 2/10, n/30. Cost of goods sold was $2,000. July 20 Collected cash due from Customer T. July 21 Before paying for the order, a customer returned shoes with an invoice price of $1,400; cost of goods sold was $840. Complete the following table by entering the amounts of the effects of each transaction, including the related cost of goods sold. (Indicate decreases with a minus sign.) Transaction Net Sales July 12 July 15 July 20 July 21 Cost of Goods Sold Gross Profit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![E6-4 (Algo) Determining the Effects of Credit Sales, Sales Discounts, Credit Card Sales, and Sales
Returns and Allowances on Income Statement Categories LO6-1
Griffin Shoe Company records Sales Returns and Allowances, Sales Discounts, and Credit Card Discounts as contra-revenues.
July 12 Sold merchandise to customer at factory store who charged the $400 purchase on her American Express card. American Express
charges a 2 percent credit card fee. Cost of goods sold was $275.
July 15 Sold merchandise to Customer T at an invoice price of $4,000; terms 2/10, n/30. Cost of goods sold was $2,000.
July 20 Collected cash due from Customer T.
July 21 Before paying for the order, a customer returned shoes with an invoice price of $1,400; cost of goods sold was $840.
Complete the following table by entering the amounts of the effects of each transaction, including the related cost of goods sold.
(Indicate decreases with a minus sign.)
Transaction Net Sales
July 12
July 15
July 20
July 21
Cost of
Goods Sold
Gross
Profit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F266d5c88-4132-4eca-8561-6ebd3b0393f5%2F5fcaa378-091b-42e2-9eb0-e8718f313f96%2Fthc0nm_processed.png&w=3840&q=75)
Transcribed Image Text:E6-4 (Algo) Determining the Effects of Credit Sales, Sales Discounts, Credit Card Sales, and Sales
Returns and Allowances on Income Statement Categories LO6-1
Griffin Shoe Company records Sales Returns and Allowances, Sales Discounts, and Credit Card Discounts as contra-revenues.
July 12 Sold merchandise to customer at factory store who charged the $400 purchase on her American Express card. American Express
charges a 2 percent credit card fee. Cost of goods sold was $275.
July 15 Sold merchandise to Customer T at an invoice price of $4,000; terms 2/10, n/30. Cost of goods sold was $2,000.
July 20 Collected cash due from Customer T.
July 21 Before paying for the order, a customer returned shoes with an invoice price of $1,400; cost of goods sold was $840.
Complete the following table by entering the amounts of the effects of each transaction, including the related cost of goods sold.
(Indicate decreases with a minus sign.)
Transaction Net Sales
July 12
July 15
July 20
July 21
Cost of
Goods Sold
Gross
Profit
![E6-9 (Algo) Recording Bad Debt Expense Estimates and Write-Offs Using the Percentage of Credit Sales
Method LO6-2
During the current year, Witz Electric, Inc., recorded credit sales of $850,000. Based on prior experience, it estimates a 3 percent bad
debt rate on credit sales.
Required:
Prepare journal entries for each transaction: (If no entry is required for a transaction/event, select "No journal entry required" in the
first account field.)
a. On September 29 of the current year, an account receivable for $3,000 from March of the current year was determined to be
uncollectible and was written off.
b. The appropriate bad debt expense adjustment was recorded for the current year.
View transaction list
Journal entry worksheet
<
1
Record the entry to write-off the uncollectible account.
2
Note: Enter debits before credits.
Transaction
a.
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
>](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F266d5c88-4132-4eca-8561-6ebd3b0393f5%2F5fcaa378-091b-42e2-9eb0-e8718f313f96%2F0htj5t_processed.png&w=3840&q=75)
Transcribed Image Text:E6-9 (Algo) Recording Bad Debt Expense Estimates and Write-Offs Using the Percentage of Credit Sales
Method LO6-2
During the current year, Witz Electric, Inc., recorded credit sales of $850,000. Based on prior experience, it estimates a 3 percent bad
debt rate on credit sales.
Required:
Prepare journal entries for each transaction: (If no entry is required for a transaction/event, select "No journal entry required" in the
first account field.)
a. On September 29 of the current year, an account receivable for $3,000 from March of the current year was determined to be
uncollectible and was written off.
b. The appropriate bad debt expense adjustment was recorded for the current year.
View transaction list
Journal entry worksheet
<
1
Record the entry to write-off the uncollectible account.
2
Note: Enter debits before credits.
Transaction
a.
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
>
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