On February 1, Crown Company purchased $2,000 of merchandise, terms 2/10, n/30. Crown uses the gross method of recording purchases. Payment of the accounts payable was made on February 26. Which of the following journal entries is appropriate for the February 26 transaction? O Debit Accounts Payable for 1,960, Debit Purchases Discounts Lost for 40, and Credit Cash for 2,000 O Debit Accounts Payable for 2,000, and Credit Cash for 2,000 O Debit Accounts Payable for 1,960, and Credit Cash for 1,960 O Debit Purchases for 2,000, and Credit Accounts Payable for 2,000

On February 1, Crown Company purchased $2,000 of merchandise, terms 2/10, n/30. Crown uses the gross method of recording purchases. Payment of the accounts payable was made on February 26. Which of the following journal entries is appropriate for the February 26 transaction? O Debit Accounts Payable for 1,960, Debit Purchases Discounts Lost for 40, and Credit Cash for 2,000 O Debit Accounts Payable for 2,000, and Credit Cash for 2,000 O Debit Accounts Payable for 1,960, and Credit Cash for 1,960 O Debit Purchases for 2,000, and Credit Accounts Payable for 2,000

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 to Stanton Company merchandise on account FOB shipping point, 2/10, net 30, for $20,000. Pierce prepaid the $500 shipping charge. Which of the following entries does Pierce make to record this sale? O Accounts Receivable-Stanton, debit $20,000; Sales, credit $20,000 O Accounts Receivable-Stanton, debit $19,600; Sales, credit $19,600, and Accounts Receivable-Stanton, debit $500; Cash, credit $500 O Accounts Receivable-Stanton, debit $20,100; Sales, credit $20,100 O Accounts Receivable-Stanton, debit $20,000; Sales, credit $20,000, and Delivery Expense, debit $500; Cash, credit $500
On September 12, Vandelay Company sold merchandise in the amount of $7,800 to Jepson Company, with credit terms of 3/10, n/30. The cost of the items sold is $5,000. Jepson uses the periodic inventory system and the gross method of accounting for purchases. The journal entry that Jepson will make on September 12 is: 4 Multiple Choice O O O Purchases Accounts Receivable Purchases Account Title Purchases Account Title Accounts Receivable Account Title Accounts payable Account Title inventory Merchandise Accounts payable Account Title Accounts payable Merchandise inventory Debit 7,800 Debit 5,000 Debit 7,800 Debit 7,800 Debit 5,000 Credit 7,800 Credit 5,000 Credit 7,800 Credit 7,800 Credit 5,000 hul
Avila Co. sold $10,000 of merchandise to Beasley Corp. on account with terms of 1/10, n/30. The merchandise cost Avila $8,200. What is the entry to record the sale on Avila's books? Debit Accounts Receivable for $10,000; Credit Sales for $10,000; Debit Cost of Goods Sold for $8,200; Credit Inventory for $8,200 Debit Accounts Receivable for $10,000; Credit Inventory for $8,200; Credit Sales for $1,800 Debit Sales for $10,000; Credit Accounts Receivable for $10,000; Debit Inventory for $8,200; Credit Cost of Goods Sold for $8,200 Debit Sales for $9,900; Credit Accounts Receivable for $9,900; Debit Cost of Goods Sold for $8,200; Credit Inventory for $8,200
Current Attempt in Progress Presented below are transactions related to Concord Corporation. On December 3, Concord Corporation sold $662,200 of merchandise on account to Sarasota Co., terms 4/10, n/30, FOB shipping point. The cost of the merchandise sold was $351,200. On December 8, Sarasota Co. was granted an allowance of $26,600 for merchandise purchased on December 3. 3. On December 13, Concord Corporation received the balance due from Sarasota Co. 1. 2. (a) ✓ Your answer is correct. Prepare the journal entries to record these transactions on the books of Concord Corporation using a perpetual inventory system (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Dec. 3 Account Titles and Explanation Accounts Receivable norcal_archives_20....zip W QCA 5.docx W Debit 662,200 response essay.docx Credit
Winsor Co. records purchases at net amounts. On May 5 Winsor purchased merchandise on account, $20,000, terms 2/10, n/30. Winsor returned $1,500 of the May 5 purchase and received credit on account. At May 31 the balance had not been paid. 5. The amount to be recorded as a purchase return is a. $1,350. b. $1,530. c. $1,500. d. $1,470. 6. By how much should the account payable be adjusted on May 31? a. $0. b. $430. C. $400. d. $370.
Prepare journal entries to record the following transactions for a retail store. The company uses a perpetual inventory system and the gross method. April 2 Purchased $5,200 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point. April 3 Paid $300 cash for shipping charges on the April 2 purchase. April 4 Returned to Lyon Company unacceptable merchandise that had an invoice price of $800. April 17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise. April 18 Purchased $9,700 of merchandise from Frist Corporation with credit terms of 1/10, n/30, invoice dated April 18, and FOB destination. April 21 After negotiations over scuffed merchandise, received from Frist a $500 allowance toward the $9,700 owed on the April 18 purchase. April 28 Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount. View transaction list Journal entry worksheet 2…
A company purchased $8,800 of merchandise on June 15 with terms of 3/10, n/45. On June 20, it returned $440 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it was entitled to. The cash paid on June 24 equals: Multiple Choice O O C O $8,109. $8,536. $8,800. $8,360. $8,153.
Levine Company uses the perpetual inventory system. Apr. 8 Sold merchandise for $9,800 (that had cost $7,242) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee. 12 Sold merchandise for $8,800 (that had cost $5,702) and accepted the customer's Continental Card. Continental charges a 2.5% fee. Prepare journal entries to record the above credit card transactions of Levine Company. (Round your answers to the nearest whole dollar amount.) Sold merchandise for $9,800 and accepted the customer’s Suntrust Bank Card. Suntrust charges a 4% fee. Note: Enter debits before credits. Date General Journal Debit Credit Apr 08
chouse distributes books to retail stores. The company purchases all merchandise inventory on credit and uses a perpetual inventory system. During July, the following merchandise transactions occurred: Date Transactions July 1 Purchased merchandise on account for AED6,500 from Field Publisher, FOB shipping points, terms 2/10, n/30. July 3 Paid freight on purchase of merchandise amounting to AED150. July 5 Received credit from Field Publisher for merchandise returned AED400. July 9 Paid Field Publisher in full. July 14 Sold merchandise on account to Bean Bookstore for AED4,800 terms 1/10, n/30. The merchandise sold had a cost of AED3,900. July 15 Granted Bean Bookstore AED350 for merchandise returned costing AED170. July 23 Received collection in full from customers billed on July 14 REQUIRED: Journalize the transactions for the month of July.
A company purchased $11,600 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping point. The freight charge, $1,300, was added to the invoice amount. On June 20, it returned $2,080 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it is entitled to. The cash paid on June 24 equals: Multiple Choice $9,224. $12,280. $12,900. $12,380. $10,534.
Purchase-related transactions. Journalize entries for the following related transactions of Mandumna Company: Purchased $71,500 of merchandise from Nacara Co. on account, terms 1/10, n/30. Discovered that $13,500 (before purchases discount of 1%) of the merchandise was defective and returned items. Paid the balance amount owed on the invoice within the discount period. Purchased $9,000 of merchandise from Nacara Co. on account, FOB Destination, terms 5/15, n/30. Paid the balance amount owed on the invoice within the discount period.
A company purchased P10,000 of merchandise inventory from a vendor who offers credit terms of 2/10 n/30. The company uses the net cost method of recording purchases of merchandise. The company paid the vendor 30 days after receiving the invoice. The journal entry to record the payment would include which of the following? a. A credit to Cash for 10,000. debit to account payable 9,800 b. A debit to Accounts Payable for 10,000, debit merchandise inventory 9800 c. A debit to Purchase Discounts for 200, credit to cash 9,800 d. a debit to account payable 10,000, credit purchase discount 200