(Learning Objectives 1, 2, 3: Apply GAAP for sales, sales returns, and salesdiscounts) Antique Interiors reported the following transactions in October:Oct 210111519Sold merchandise on account to Tim Hinkel, $1,200, terms 1/10, n/30.Sold merchandise on account to Ben Homan, $2,600, terms 2/10, n/30.Collected payment from Hinkel for the October 2 sale.Homan returned $2,000 of the merchandise purchased on October 10.Collected payment from Homan for the balance of the October 10 sale.Requirements1. Record the foregoing transactions in the journal of Antique Interiors using the grossmethod. (You do not need to make the cost of sales journal entries; assume that these entrieswill be made by the company when it makes its other adjusting entries at period end.)2. Calculate the amount of gross sales minus sales discounts for the month of October.
(Learning Objectives 1, 2, 3: Apply GAAP for sales, sales returns, and sales
discounts) Antique Interiors reported the following transactions in October:
Oct 2
10
11
15
19
Sold merchandise on account to Tim Hinkel, $1,200, terms 1/10, n/30.
Sold merchandise on account to Ben Homan, $2,600, terms 2/10, n/30.
Collected payment from Hinkel for the October 2 sale.
Homan returned $2,000 of the merchandise purchased on October 10.
Collected payment from Homan for the balance of the October 10 sale.
Requirements
1. Record the foregoing transactions in the journal of Antique Interiors using the gross
method. (You do not need to make the cost of sales
will be made by the company when it makes its other
2. Calculate the amount of gross sales minus sales discounts for the month of October.
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