Merchandise with a list price of $3,900 and costing $2,000 is sold to a customer (MJ Co.) on account, subject to the following terms: 2/10, n/30. The seller (Stone Co.) prepays the transportation costs of $50, shipping terms are FOB Destination. The correct payment amount is received from the buyer within the discount period. Record the foregoing transactions of the SELLER (Stone Co.) in the sequence indicated below (omit the 4th journalizing step of providing an explanation): (a) Sold the merchandise, recognizing the sale and cost of merchandise sold. (b) Paid the $50 transportation charges. (c) Received payment from the customer. Record the foregoing transactions of the BUYER (MJ Co.) in the sequence indicated below (omit the 4th journalizing step of providing an explanation):
Merchandise with a list price of $3,900 and costing $2,000 is sold to a customer (MJ Co.) on account, subject to the following terms: 2/10, n/30. The seller (Stone Co.) prepays the transportation costs of $50, shipping terms are FOB Destination. The correct payment amount is received from the buyer within the discount period.
Record the foregoing transactions of the SELLER (Stone Co.) in the sequence indicated below (omit the 4th journalizing step of providing an explanation):
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(a) |
Sold the merchandise, recognizing the sale and cost of merchandise sold. |
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(b) |
Paid the $50 transportation charges. |
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(c) |
Received payment from the customer.
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Record the foregoing transactions of the BUYER (MJ Co.) in the sequence indicated below (omit the 4th journalizing step of providing an explanation):
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(d) |
Bought the merchandise. |
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(e) |
Sent payment to the vendor.
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JOURNAL
Date Post. DR CR |
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