Mar. 1 Morris Supply sold merchandise inventory for $3,000. The cost of the inventory was $1,800. The customer paid cash. Morris Supply was running a promotion and the customer received a $150 award at the time of sale that can be used at a future date on any Morris Supply merchandise. 3 Sold $6,000 of supplies on account. Credit terms are 2/10, n/45, FOB destination. Cost of goods is $3,600. 10 Received payment from the customer on the amount due from March 3, less the discount. Apr. 15 The customer used the $150 award when purchasing merchandise inventory for $200, the cost of the inventory was $120. The customer paid cash.
Mar. 1 Morris Supply sold merchandise inventory for $3,000. The cost of the inventory was $1,800. The customer paid cash. Morris Supply was running a promotion and the customer received a $150 award at the time of sale that can be used at a future date on any Morris Supply merchandise. 3 Sold $6,000 of supplies on account. Credit terms are 2/10, n/45, FOB destination. Cost of goods is $3,600. 10 Received payment from the customer on the amount due from March 3, less the discount. Apr. 15 The customer used the $150 award when purchasing merchandise inventory for $200, the cost of the inventory was $120. The customer paid cash.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Journalizing multiple performance obligations and sales transactions
Journalize the following sales transactions for Morris Supply. Explanations are not required.
Transcribed Image Text:Mar. 1
Morris Supply sold merchandise inventory for $3,000. The cost of the
inventory was $1,800. The customer paid cash. Morris Supply was running
a promotion and the customer received a $150 award at the time of sale
that can be used at a future date on any Morris Supply merchandise.
3 Sold $6,000 of supplies on account. Credit terms are 2/10, n/45, FOB
destination. Cost of goods is $3,600.
10 Received payment from the customer on the amount due from March 3,
less the discount.
Apr. 15 The customer used the $150 award when purchasing merchandise
inventory for $200, the cost of the inventory was $120. The customer paid
cash.
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