On December 1, Macy Company sold merchandise with a selling price of $8,000 on account to Mrs Jorgensen, with terms 2/10, n/30 On December 3, Mrs. Jorgensen returned merchandise with a selling price of $900 Mrs Jorgensen paid the amount due on December 9 What journal entry did Macy Company prepare on December 9 assuming the gross method is used? O A. Debit Cash for $6.958 and credit Accounts Receivable for $6.958 OB. Debit Cash for $6.958, debit Sales Discounts for $142, and credit Accounts Receivable for $7,100 OC. Debit Sales Revenue for $7,100, credit Sales Discount for $142 and credit Cash for $6,958 O D. Debit Sales Revenue for $6,958, debit Sales Discounts for $142, and credit Accounts Receivable for $7,100

On December 1, Macy Company sold merchandise with a selling price of $8,000 on account to Mrs Jorgensen, with terms 2/10, n/30 On December 3, Mrs. Jorgensen returned merchandise with a selling price of $900 Mrs Jorgensen paid the amount due on December 9 What journal entry did Macy Company prepare on December 9 assuming the gross method is used? O A. Debit Cash for $6.958 and credit Accounts Receivable for $6.958 OB. Debit Cash for $6.958, debit Sales Discounts for $142, and credit Accounts Receivable for $7,100 OC. Debit Sales Revenue for $7,100, credit Sales Discount for $142 and credit Cash for $6,958 O D. Debit Sales Revenue for $6,958, debit Sales Discounts for $142, and credit Accounts Receivable for $7,100

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Pierce Company sold merchandise to Stanton Company on account FOB shipping point, 1/10, net 30, for $9,500. Pierce prepaid the $285 shipping charge. Which of the following entries does Pierce make to record this sale? a.Accounts Receivable—Stanton, debit $9,785; Sales, credit $9,785 b.Accounts Receivable—Stanton, debit $9,500; Sales, credit $9,500 c.Accounts Receivable—Stanton, debit $9,500; Sales, credit $9,500, and Delivery Expense, debit $285; Cash, credit $285 d.Accounts Receivable—Stanton, debit $9,405; Sales, credit $9,405, and Accounts Receivable—Stanton, debit $285; Cash, credit $285
Provisions Grocery Store purchased merchandise on account from Federal Grocers for $500.00 on April 6, terms 2/10, n/30. Federal Grocers prepaid freight charges of $25.00 and added them to the invoice. Assuming Provisions Grocery Store pays the amount due within the discount period, what is the amount of the payment?
Sather Co. sold merchandise to Boone Co. on account, $31,800, terms 2/15, n/30. The cost of the merchandise sold is $19,000. Journalize the entries for Sather Co. and Boone Co. for the sale, purchase, and payment of amount due. Assume all discounts are taken.
On March 1, Sally Co. sold merchandise to Buck Co. on account, $58,900, terms 2/15, n/30. The cost of the merchandise sold is $35,200. The merchandise was paid for on March 14. Assume all discounts are taken. Required: Journalize the entries for Sally Co. and Buck Co. for the sale, purchase, and payment of amount due. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a joumal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
Schofield Co. sold merchandise on account to Bernard Retail Inc. for $15,000, terms 2/10, n/30. The cost of the merchandise sold was $8,000. Assuming Schofield Co. uses the gross method of recording sales discounts. A. Journalize the entries to record the sale on December 31. B. Journalize the entries to record the receipt of payment assuming it is made within the discount period on December 31.* C. Journalize the entries to record the receipt of payment assuming it is made beyond the discount period on December 31.* *Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTSSchofield CompanyGeneral Ledger ASSETS 110 Cash 120 Accounts Receivable-Bernard Retail Inc. 125 Notes Receivable 130 Inventory 131 Estimated Returns Inventory 140 Office Supplies 141 Store Supplies 142 Prepaid Insurance 180 Land 192 Store Equipment 193 Accumulated Depreciation-Store Equipment 194 Office Equipment 195 Accumulated…
Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, $35,200, terms n/30. The cost of the merchandise sold is $21,100. Showcase Co. issues a credit memo for $6,000 as a price adjustment prior to Balboa Co. paying the original invoice. a. Journalize Balboa Co.’s entry for the purchase. b. Journalize Balboa Co.’s entry for the credit memo. c. Journalize Balboa Co.’s entry for the payment of the invoice.
On December 28, 20Y3, Silverman Enterprises sold $20,000 of merchandise to Beasley Co. with terms n/30. The cost of the goods sold was $12,000. On December 31, 20Y3, Silverman prepared its adjusting entries, yearly financial statements, and closing entries. On January 3, 20Y4, Silverman Enterprises issued Beasley Co. a credit memo for returned merchandise. The invoice amount of the returned merchandise was $4,000 and the merchandise originally cost Silverman Enterprises $2,350. Question Content Area a. Journalize the entries by Silverman Enterprises to record the December 28, 20Y3, sale. If an amount box does not require an entry, leave it blank. b. Journalize the entries by Silverman Enterprises to record the merchandise returned by Beasley Co. on January 3, 20Y4. If an amount box does not require an entry, leave it blank.
On March 1, Crunk Company sold merchandise in the amount of $5.800 to Wells Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Crunk uses the perpetual inventory system and the gross method. On July 5, Wells returns some of the merchandise. The selling price of the merchandise is $500 and the cost of the merchandise returned is $350. The entry or entries that Crunk must make on July 5 is: 500 Accounts receivable Sales returns and allowances Sales returns and allowances Accounts receivable Accounts receivable Sales returns and allowances: Cost of goods sold Merchandise inventory Sales returns and allowances Accounts receivable Sales returns and allowances Accounts receivable Merchandise inventory Cost of goods sold 350 & B see 350 500 500 350 500 350 500 350 See 500 350
On June 1, Able Company sold merchandise in the amount of $6,000 to Maya's, with credit terms of 2/10, n/30. The cost of the items sold is $5,000. Able uses the perpetual inventory system. The journal entry or entries that Able will make on June 1 is: June 9th entry when Maya pays for her merchandise If June 9th never happened, and Maya paid on June 20th, What is the journal entry? Fido Company had sales of $200,000, sales discounts of $5,000, and sales returns of $4,800. Fido Company's net sales equals
Prepare journal entries for the following transactions. Oct. 5 Sold merchandise on account to B. Farnsby for $290 plus sales tax of 4%. 8 Sold merchandise on account to F. Preetee for $180 plus sales tax of 4%, with 2/10, n/30 cash discount terms. 11 F. Preetee returned merchandise purchased on October 8 for $40 plus sales tax for credit. 17 F. Preetee paid the balance due on her account. 18 B. Farnsby returned merchandise purchased on October 5 for $80 plus sales tax for credit. 20 B. Farnsby paid the balance due on his account. Required: Prepare journal entries.
Abbey Co. sold merchandise to Gomez Co. on account, $29,800, terms 2/15, net 45. The cost of the goods sold was $15,731. Abbey Co, issued a credit memo for $3,600 for merchandise returned that originally cost $1,484. Gomez Co. paid the invoice within the discount period. What is the amount of gross profit earned by Abbey Co. on the above transactions? O s11,429 O $14,957 O $14.247 O $3,600 Previous Next 6:26 PM 38 3/22/2021
On March 12, Klein Company sold merchandise in the amount of $7,800 to Babson Company, with credit terms 2/10, n30. The cost of the items sold is $4,500. Klein uses PERPETUAL inventory system and the GROSS METHOD of accounting for sales. Babson pays the invoice on March 17th and takes the appropriate discount. What is the journal entry Klein makes on March 17th?