On December 15, Lee Corp requested credit for $500 of defective merchandise included in their December 9 purchase. We granted them an allowance and they disposed of the defective merchandise at our request. 4)On December 15, Lee Corp requested credit for $500 of defective merchandise included in theirDecember 9 purchase. We granted them an allowance and they disposed of the defective merchandiseat our request.DateAccount descriptionDebitCredit

Journal entries are the primary reporting of daily business transactions in the books of accounts. These are recorded in accordance with the double entry system.Journal entry: Date Account Description Debit Credit 15 December Sale returns and allowances $500 Accounts receivable $500

Business

Accounting

On December 15, Lee Corp requested credit for $500 of defective merchandise included in their December 9 purchase. We granted them an allowance and they disposed of the defective merchandise at our request. Date Account description Debit Credit

On December 15, Lee Corp requested credit for $500 of defective merchandise included in their December 9 purchase. We granted them an allowance and they disposed of the defective merchandise at our request. Date Account description Debit Credit

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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On July 2, 2021, Windsor Company sold to Sue Black merchandise having a sales price of $11,100 (cost $6,660) with terms of 2/10. n/30. f.o.b. shipping point. Windsor estimates that merchandise with a sales value of $810 will be returned. An invoice totaling $130, terms n/30, was received by Black on July 6 from Pacific Delivery Service for the freight cost. Upon receipt of the goods, on July 3, Black notified Windsor that $400 of merchandise contained flaws. The same day, Windsor issued a credit memo covering the defective merchandise and asked that it be returned at Windsor’s expense. Windsor estimates the returned items to have a fair value of $150. The freight on the returned merchandise was $20 paid by Windsor on July 7. On July 12, the company received a check for the balance due from Black. Prepare journal entries for Windsor Company to record all the events noted above assuming sales and receivables are entered at gross selling price. (Credit account titles are…
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A buyer of $7,800 in merchandise inventory failed to take advantage of the vendor's credit terms of 2/15, n/45, and instead paid the invoice in full at the end of 45 days. By not taking advantage of the cash discount, the buyer lost the discount of: Multiple Choice $1,170. $156. $100. $78. $780.
8. On 12/30/20, Redding Corporation sold merchandise for $75,000 to Norbert Company. The terms of the sale were net 30, FOB shipping point. The merchandise was shipped on 12/31/20, and arrived at Norbert on 1/5/21. Because of a clerical error, Redding did not record the sale until 1/7/21, and the merchandise (before Redding's 25% markup on cost) was included in Redding's inventory at 12/31/20. As a result, Redding's net income for the year ended 12/31/20 was: a. Overstated by $75,000. b. Understated by $60,000. c. Understated by $15,000. d. Correctly stated; not impacted by inventory.