On February 3, Smart Company sold merchandise in the amount of $4,800 to Truman Company, with credit terms of 1/10, n/30. The cost of the Items sold is $3,310. Smart uses the perpetual Inventory system and the gross method. Truman pays the invoice on February 8, and takes the appropriate discount. The journal entry that Smart makes on February 8 is: Multiple Choice Cash 3,310 Accounts receivable 3,310 Cash 4,800 Accounts receivable 4,800 Cash 4,720 Sales discounts 33 Accounts receivable 4,753 3,230 Cash 3,230 Accounts receivable

On February 3, Smart Company sold merchandise in the amount of $4,800 to Truman Company, with credit terms of 1/10, n/30. The cost of the Items sold is $3,310. Smart uses the perpetual Inventory system and the gross method. Truman pays the invoice on February 8, and takes the appropriate discount. The journal entry that Smart makes on February 8 is: Multiple Choice Cash 3,310 Accounts receivable 3,310 Cash 4,800 Accounts receivable 4,800 Cash 4,720 Sales discounts 33 Accounts receivable 4,753 3,230 Cash 3,230 Accounts receivable

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

A seller uses a perpetual inventory system and on April 4 it sells $5,000 in merchandise with a cost of $2,400 to a customer on credit terms of 3/10, n/30.
A buyer uses a perpetual inventory system, and it purchased. $4,000 of merchandise on credit terms of 2/10, n/30 on December 5. Later, on December 15, the buyer pays the invoice in full. Complete the buyer's journal entry for payment by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns. No 1 Date December 15 Sales Accounts receivable Answer is not complete. General Journal XX Debit 4,000✔ Credit
Office Supplies Express uses a perpetual inventory system. Journalize the following sales transactions for this company. Explanations are not required. July 3 Sold $15,400 of merchandise on account, credit terms are 2/10, n/30. Cost of goods is $9,300. July 7 Received a $750 sales return from the customer. Cost of the goods is $435. July 12 Office Supplies receives payment for the customer for the amount due from the July 3 sale.
Ali Co. uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Journalize the following transactions that should be recorded in the cash receipts journal. Nov. 3 The company purchased $3,500 of merchandise on credit from Hart Co., terms n/20. 7 The company sold merchandise costing $924 to J. Than for $1,015 on credit, subject to a $20 sales discount if paid by the end of the month. 9 The company 13 J. Ali, the 18 The company sold merchandise costing $147 to B. Cox for $262 cash. 22 The company paid Hart Co. $3,500 cash for the merchandise purchased on November 3. 27 The company received $995 cash from J. Than in payment of the November 7 purchase. 30 The company paid salaries of $1,750 in cash. Date borrowed $3,450 cash by signing a note payable to the bank. owner, contributed $4,750 cash to the company. Account Credited Cash Dr. CASH RECEIPTS JOURNAL Accounts Receivable. Sales Cr. Cr. Sales Discount Dr. Other Accounts Cr. Cost of…
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 $4,600 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point. Paid $300 cash for shipping charges on the April 2 purchase. April 3 April 4 Returned to Lyon Company unacceptable merchandise that had an invoice price of $600. April 17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise. April 18 Purchased $8,500 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 $8,500 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 1 2 3…
Jade Company uses the perpetual inventory system. It bought merchandise from Lilac Company. After two months, Jade Company returned merchandise worth $400 to Lilac Company. Which of the following journal entries records the return of merchandise by Jade? a. A debit to Cost for Goods Sold for $400 and a credit to Merchandise Inventory for $400 b. A debit to Accounts Payable, Lilac Company for $400 and a credit to Merchandise Inventory for $400 c. A debit to Accounts Payable, Lilac Company for $400 and a credit to Cost for Goods Sold for $400 d. A debit to Accounts Payable, Lilac Company for $400 and a credit to Purchases Returns and Allowances for $400
On September 12, Vander Company sold merchandise in the amount of $9,600 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $5,900. 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: Multiple Choice О Account Title Debit Credit Purchases 5,900 Accounts Receivable 5,900 О Account Title Debit Credit Purchases 9,600 Accounts payable 9,600 Account Title Debit Credit Accounts payable 5,900 Merchandise inventory 5,900 Account Title Debit Credit Merchandise inventory 9.600
Alpesh
Gadubhai
Landon Jewelers uses the perpetual inventory system. On April 2, Landon sold merchandise with a cost of $4,500 for $9,000 to a customer on account with terms of 1/15, n/30. The journal entry to record the cost of goods sold would be: A. Cost of Goods Sold 4,500 Accounts Receivable 4,500 B. Cost of Goods Sold 4,500 Merchandise Inventory 4,500 C. Sales Revenue 4,500 Cost of Goods Sold 4,500 D. Merchandise Inventory 4,500 Cost of Goods Sold 4,500
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 $3,900 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point. April 3 Paid $200 cash for shipping charges on the April 2 purchase. April 4 Returned to Lyon Company unacceptable merchandise that had an invoice price of $850. April 17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise. April 18 Purchased $7,100 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 $400 allowance toward the $7,100 owed on the April 18 purchase. April 28 Sent check to Frist paying for the April 18 purchase, net of the allowance and the discoun
On July 1, Hernandez, Inc. purchased merchandise for $2,500, with terms of 1/10, n/30. On July 5, the firm returned $1 ,000 of the merchandise to the seller. Payment of the account occurred on July 8. Hernandez uses the perpetual inventory system. a. Prepare the journal entries for July 1, July 5, and July 8. b. Assuming that the account was paid on July 14, prepare the journal entry for payment on that date.