No 1 2 Required information [The following information applies to the questions displayed below.] 2. Prepare the journal entries that Readers' Corner would record and show any computations. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) The transactions listed below are typical of those involving New Books Inc. and Readers' Corner. New Books is a wholesale merchandiser and Readers' Corner is a retail merchandiser. Assume all sales of merchandise from New Books to Readers' Corner are made with terms 2/10, n/30, and that the two companies use perpetual inventory systems. Assume the following transactions between the two companies occurred in the order listed during the year ended August 31. 3 a. New Books sold merchandise to Readers' Corner at a selling price of $550,000. The merchandise had cost New Books $415,000. b. Two days later, Readers' Corner complained to New Books that some of the merchandise differed from what Readers' Corner had ordered. New Books agreed to give an allowance of $10,000 to Readers' Corner. c. Just three days later, Readers' Corner paid New Books, which settled all amounts owed. Transaction a. b. Inventory C. Accounts Receivable Accounts Payable Inventory General Journal Cash Sales Discounts X ✓ Debit 550,000✔ 10,000✔ X X Accounts Receivable X *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. Credit 529,200 X 10,800 55,000 X 10,000 X 540,000 X
No 1 2 Required information [The following information applies to the questions displayed below.] 2. Prepare the journal entries that Readers' Corner would record and show any computations. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) The transactions listed below are typical of those involving New Books Inc. and Readers' Corner. New Books is a wholesale merchandiser and Readers' Corner is a retail merchandiser. Assume all sales of merchandise from New Books to Readers' Corner are made with terms 2/10, n/30, and that the two companies use perpetual inventory systems. Assume the following transactions between the two companies occurred in the order listed during the year ended August 31. 3 a. New Books sold merchandise to Readers' Corner at a selling price of $550,000. The merchandise had cost New Books $415,000. b. Two days later, Readers' Corner complained to New Books that some of the merchandise differed from what Readers' Corner had ordered. New Books agreed to give an allowance of $10,000 to Readers' Corner. c. Just three days later, Readers' Corner paid New Books, which settled all amounts owed. Transaction a. b. Inventory C. Accounts Receivable Accounts Payable Inventory General Journal Cash Sales Discounts X ✓ Debit 550,000✔ 10,000✔ X X Accounts Receivable X *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. Credit 529,200 X 10,800 55,000 X 10,000 X 540,000 X
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 7PA: Selected data on merchandise inventory, purchases, and sales for Celebrity Tan Co. and Ranchworks...
Related questions
Question
Do not give image format
![No
1
2
Required information
[The following information applies to the questions displayed below.]
The transactions listed below are typical of those involving New Books Inc. and Readers'
Corner. New Books is a wholesale merchandiser and Readers' Corner is a retail
merchandiser. Assume all sales of merchandise from New Books to Readers' Corner are
made with terms 2/10, n/30, and that the two companies use perpetual inventory
systems. Assume the following transactions between the two companies occurred in the
order listed during the year ended August 31.
2. Prepare the journal entries that Readers' Corner would record and show any
computations. (If no entry is required for a transaction/event, select "No Journal
Entry Required" in the first account field.)
a. New Books sold merchandise to Readers' Corner at a selling price of $550,000. The
merchandise had cost New Books $415,000.
3
b. Two days later, Readers' Corner complained to New Books that some of the
merchandise differed from what Readers' Corner had ordered. New Books agreed to
give an allowance of $10,000 to Readers' Corner.
c. Just three days later, Readers' Corner paid New Books, which settled all amounts
owed.
Transaction
a.
b.
Inventory
C.
Accounts Receivable
Accounts Payable
Inventory
General Journal
Cash
Sales Discounts
✓
X
✓
✓
Debit
550,000✓
10,000✔
X
X
X
Accounts Receivable
*Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.
Credit
529,200 X
10,800
55,000 X
10,000
X
540,000 X](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffec63f0f-f827-47c5-82ce-b5295cd2e4ee%2F881c1d39-e0ac-4a45-8376-8e57f884798a%2Fyrrf03m_processed.png&w=3840&q=75)
Transcribed Image Text:No
1
2
Required information
[The following information applies to the questions displayed below.]
The transactions listed below are typical of those involving New Books Inc. and Readers'
Corner. New Books is a wholesale merchandiser and Readers' Corner is a retail
merchandiser. Assume all sales of merchandise from New Books to Readers' Corner are
made with terms 2/10, n/30, and that the two companies use perpetual inventory
systems. Assume the following transactions between the two companies occurred in the
order listed during the year ended August 31.
2. Prepare the journal entries that Readers' Corner would record and show any
computations. (If no entry is required for a transaction/event, select "No Journal
Entry Required" in the first account field.)
a. New Books sold merchandise to Readers' Corner at a selling price of $550,000. The
merchandise had cost New Books $415,000.
3
b. Two days later, Readers' Corner complained to New Books that some of the
merchandise differed from what Readers' Corner had ordered. New Books agreed to
give an allowance of $10,000 to Readers' Corner.
c. Just three days later, Readers' Corner paid New Books, which settled all amounts
owed.
Transaction
a.
b.
Inventory
C.
Accounts Receivable
Accounts Payable
Inventory
General Journal
Cash
Sales Discounts
✓
X
✓
✓
Debit
550,000✓
10,000✔
X
X
X
Accounts Receivable
*Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.
Credit
529,200 X
10,800
55,000 X
10,000
X
540,000 X
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