Inventory system and the gross method. 1 Sold merchandise for $6,400, with credit terms n/30; invoice dated April 1. The cost of the merchandise is $3,840. 4 The customer in the April 1 sale returned $720 of merchandise for ful1 credit. The merchandise, which had cost $432, is returned to inventory. 8 Sold merchandise for $2,700, with credit terms of 1/10, n/30; invoice dated April 8. Cost of the merchandise is $1,890. Apr. Apr. Apr. Apr. 11 Received payment for the amount due from the April 1 sale less the return on April 4.

Inventory system and the gross method. 1 Sold merchandise for $6,400, with credit terms n/30; invoice dated April 1. The cost of the merchandise is $3,840. 4 The customer in the April 1 sale returned $720 of merchandise for ful1 credit. The merchandise, which had cost $432, is returned to inventory. 8 Sold merchandise for $2,700, with credit terms of 1/10, n/30; invoice dated April 8. Cost of the merchandise is $1,890. Apr. Apr. Apr. Apr. 11 Received payment for the amount due from the April 1 sale less the return on April 4.

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Description: SavedHelpSave & ExitSubmituses a perpetual inventory system and the gross method.1 Sold merchandise for $6,400, with credit terms n/30; invoice dated April 1. The cost of themerchandise is $3,840.4 The customer in the April 1 sale returned $720 of m

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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Journalize the following transactions for the Evans Company. Assume the company uses a perpetual inventory system. (a) Sold merchandise for $645. The cost of goods sold was $375. (b) Sold merchandise for $432 and accepted VISA as the form of payment. The cost of goods sold was $195. (c) Sold merchandise on account for $670. The cost of goods sold was $438. (d) Paid credit card fees for the month of $85. Journal Date Description Debit Credit
Part 1: The following merchandise transactions occurred during the month of March for Jeffries Inc. which uses a perpetual inventory system. Jeffries Inc. records discounts using the gross method. a. March,3: Jeffries Inc. sold merchandise on account to Garrabrant LLC for $48,000 on terms 4/15, n/30. b. March 6: Jeffries Inc. sold merchandise on account to Thompson Inc. for $22,500 on terms 3/15, n/45. c. Márch 6: Jeffries Inc. estimates allowances of $2,160 will be honored on the sales to Thompson Inc. and records these estimates at point of sale. d. March 15: Garrabrant LLC paid Jeffries Inc. for the amount owed. e. March 30: Thompson Inc. paid Jeffries Inc. for the amount owed. Required: Prepare the journal entries using the gross method. Round all values to the nearest dollar. (a): Prepare the journal entry for Jeffries Inc. on March 3.
Journalize the following inventory merchandise transactions for both Sampson and Batson, assuming that the both Sampson and Batson uses the perpetual inventory system. Refer to the Chart of Accounts for exact wording of account titles. Dec. 1 Sampson Co. sold merchandise to Batson Co. on account, $34,200, terms 2/15, net 45. The cost of the merchandise sold is $25,650. 6 Batson Co. paid the invoice within the discount period.
Sales-related transactions Sayers Co. sold merchandise on account to a customer for $86,000 terms 1/10, n/30. The cost of the goods sold was $66,000. a. Journalize Sayers' entries to record the sale, using the net method under a perpetual inventory system. If an amount box does not require an entry, leave it bla b. Journalize the receipt of payment within the discount period. If an amount box does not require an entry, leave it blank. c. Journalize the entry to record the receipt of payment beyond the discount period of 10 days. If an amount box does not require an entry, leave it blank. Previous Next Check My Work All work saved. Email Instructor Save and Exit Submit Assignment for Gr APR étv
Prepare journal entries for the following merchandising transactions of Powell Company assuming it uses a perpetual inventory system and the gross method. May 1 Powell purchased merchandise with a price of $875 and credit terms of n/30. May 12 Powell returned merchandise that had a price of $125. May 31 Powell paid the amount due from the May 1 purchase, minus the May 12 return. June 3 Powell sold merchandise for $450, with credit terms n/15. Cost of the merchandise is $300. June 5 The customer discovers some of the units are scratched. Powell gives a price reduction (allowance) and credits the customer’s accounts receivable for $20 to compensate for the scratches. June 18 Powell received payment for the amount due from the June 3 sale less the June 5 allowance.
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Journalize the following transactions for Armour Inc. Oct. 7 Sold merchandise on credit to Rondo Distributors, for $1,200, terms n/30. The cost of the merchandise was $720. Purchased merchandise, $10,000, terms FOB shipping point, 2/15, n/30, with prepaid freight charges of $525 added to the invoice. Journalize the transactions above using the periodic inventory system. If an amount box does not require an entry, leave it blank. Oct. 7 Oct. 8 Journalize the transactions above using the perpetual inventory system. Oct. 7- Sale Cost Oct. 8
a. Sampson Co. sold merchandise to Batson Co. on account, $35,200, terms 2/15, n/45. b. The cost of the goods sold is $26,400. c. The Batson Co. paid the invoice within the discount period. Assume that both Sampson and Batson use a perpetual inventory system and that Sampson Co. uses the net method of recording sales discounts. If no entry is required, select "No entry required" and leave the amount boxes blank. Journalize the entries that Sampson Company would record for the information above. If an amount box does not require an entry, leave it blank. a. b. C. Journalize the entries that Batson Company would record for the information above. If an amount box does not require an entry, leave it blank. a. b. C.