Mr. Ahmed Al Rawahi and Mr. Abdullah Al Rawahi started a business called BEST COMPUTER ACCESSORIES business in Nizwa. They purchase different types of Computer accessories from a Wholesale merchandiser and re-sells to retail merchandiser in Sultanate of Oman. The business follows Periodic Inventory System. Following are the business transactions: Identify all the business transactions in the books of BEST COMPUTER ACCESSORIES Date Transactions 1st January 2020 The business purchased 100 numbers of Dell Monitors at a cost of OMR 70 each from Rahman Computers (Wholesale merchandiser) The payment terms are 5/10, n/30. 3rd January 2020 Purchased 100 numbers of Acer Keyboard at a cost of OMR 60 each from Computer Supplies LLC. The payment terms are 3/10, n/30. Trade discount was given by the supplier @ 5% on the invoice price. 5th January 2020 The business discovers that 20 numbers of Dell monitors are HP monitors. Therefore, these goods are returned to Rahman Computers and requested for full refund. 9th January 2020 Rahman computers were settled with full payment. 15th February 2020 The business sold 80 numbers of Dell monitors at a Cost OMR 100 each to Nizwa Computers (a retail merchandiser). The payment terms are 2/10,n/60. 20th February 2020 Nizwa Computers discovers that 25 Dell monitors which was purchased on 15th February 2020 are slightly damaged. The customer decides to keep the monitors but receives a sales allowance OMR 10 per monitor. Which one of the following journal entry is Correct on 9th January 2020? a. Debit Accounts payable OMR 5600 Credit Cash OMR 5600 b. Debit Accounts payable OMR 5600 Credit Cash OMR 5320 Credit Discount OMR 280 c. Debit Cash OMR 5320 Debit Discount OMR 280 Credit Accounts payable OMR 5600 d. Debit Accounts payable OMR 5600 Credit Merchandise inventory OMR 280 Credit Cash OMR 5320

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Mr. Ahmed Al Rawahi and Mr. Abdullah Al Rawahi started a business called BEST COMPUTER ACCESSORIES business in Nizwa. They purchase different types of Computer accessories from a Wholesale merchandiser and re-sells to retail merchandiser in Sultanate of Oman. The business follows Periodic Inventory System. Following are the business transactions: Identify all the business transactions in the books of BEST COMPUTER ACCESSORIES Date Transactions 1st January 2020 The business purchased 100 numbers of Dell Monitors at a cost of OMR 70 each from Rahman Computers (Wholesale merchandiser) The payment terms are 5/10, n/30. 3rd January 2020 Purchased 100 numbers of Acer Keyboard at a cost of OMR 60 each from Computer Supplies LLC. The payment terms are 3/10, n/30. Trade discount was given by the supplier @ 5% on the invoice price. 5th January 2020 The business discovers that 20 numbers of Dell monitors are HP monitors. Therefore, these goods are returned to Rahman Computers and requested for full refund. 9th January 2020 Rahman computers were settled with full payment. 15th February 2020 The business sold 80 numbers of Dell monitors at a Cost OMR 100 each to Nizwa Computers (a retail merchandiser). The payment terms are 2/10,n/60. 20th February 2020 Nizwa Computers discovers that 25 Dell monitors which was purchased on 15th February 2020 are slightly damaged. The customer decides to keep the monitors but receives a sales allowance OMR 10 per monitor. Which one of the following journal entry is Correct on 9th January 2020? a. Debit Accounts payable OMR 5600 Credit Cash OMR 5600 b. Debit Accounts payable OMR 5600 Credit Cash OMR 5320 Credit Discount OMR 280 c. Debit Cash OMR 5320 Debit Discount OMR 280 Credit Accounts payable OMR 5600 d. Debit Accounts payable OMR 5600 Credit Merchandise inventory OMR 280 Credit Cash OMR 5320

Expert Solution

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions