On May 11, 2023, Wilson Purchasing purchased $30,000 of merchandise from Happy Sales; terms 1/10,n/90, FOB Happy Sales. The cost of the goods to Happy was $25,000. Wilson paid $2,000 to ExpressShipping Service for the delivery charges on the merchandise on May 11. On May 12, Wilson returned$5,000 of goods to Happy Sales, which restored them to inventory. The returned goods had costHappy $4,200. On May 20, Wilson mailed a cheque to Happy for the amount owed on that date. Happyreceived and recorded the cheque on May 21.Required:a. Present the journal entries that Wilson Purchasing should record for these transactions. Assume thatWilson uses a perpetual inventory system.View transaction list1 Record the purchase of merchandise on credit; terms1/10, n/90.2 Record the payment of shipping charges on purchasedmerchandise.3 Record the return of unacceptable merchandise.4 Record the payment of balance within the discountperiod.b. Present the journal entries that Happy Sales should record for these truses a perpetual inventory system.View transaction listRecord sale of merchandise on account; 1/10, n/90.Record cost of sale.3 Record the entry for accepting a return from a customer.4 Record the cost of returned goods.5 Record the entry for receipt of balance within thediscount period.Note :X= journal entry has been enteredNet savingsXAnalysis Component:Assume that the buyer, Wilson Purchasing, borrowed enough cash to pay the balance on the last day ofthe discount period at an annual interest rate of 4% and paid it back on the last day of the credit period.Calculate how much the buyer saved by following this strategy. (Use a 365-day year. Roundintermediate calculations and final answer to 2 decimal places.)

Rules for EntriesPersonal Account: Related to Person or Firm.Receiver will be debited and Giver will…

n/90, FOB Happy Sales. The cost of the goods to Happy was $25,000. Wilson paid $2,000 to Express Shipping Service for the delivery charges on the merchandise on May 11. On May 12, Wilson returned $5,000 of goods to Happy Sales, which restored them to inventory. The returned goods had cost Happy $4,200. On May 20, Wilson mailed a cheque to Happy for the amount owed on that date. Happ received and recorded the cheque on May 21.

n/90, FOB Happy Sales. The cost of the goods to Happy was $25,000. Wilson paid $2,000 to Express Shipping Service for the delivery charges on the merchandise on May 11. On May 12, Wilson returned $5,000 of goods to Happy Sales, which restored them to inventory. The returned goods had cost Happy $4,200. On May 20, Wilson mailed a cheque to Happy for the amount owed on that date. Happ received and recorded the cheque on May 21.

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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