keAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=D&inprogress-falseUpPierce Company sold to Stanton Company merchandise on account FOB shipping point, 2/10, net B0, for $600. Pierce prepaid the $40 shipping charge.Which of the following entries does Pierce make to record this sale?O Accounts Receivable-Stanton, debit $40; Sales, credit $40O Accounts Receivable-Stanton, debit $588; Sales, credit S588, and Accounts Receivable-Stanton, debit $40, Cash, credit S40Accounts Receivable-Stanton, debit $640; Sales, credit $640O Accounts Receivable-Stanton, debit $40: Sales, credit $40, and Transportation Out, debit S600, Cash, credit S600PreviousNext6:28 PMearch383/22/2021

Sale value=Merchandise value×100-2%=$600×98%=$588

Pierce Company sold to Stanton Company merchandise on account FOB shipping point, 2/10, net 30, for $600. Pierce prepaid the $40 shipping charge. Which of the following entries does Pierce make to record this sale? O Accounts Receivable-Stanton, debit $40; Sales, credit $40 Accounts Receivable-Stanton, debit $588; Sales, credit $588, and Accounts Receivable-Stanton, debit $40; Cash, credit $40 O Accounts Receivable-Stanton, debit $640; Sales, credit $640 O Accounts Receivable-Stanton, debit $40; Sales, credit $40, and Transportation Out, debit $600; Cash, credit $600

Pierce Company sold to Stanton Company merchandise on account FOB shipping point, 2/10, net 30, for $600. Pierce prepaid the $40 shipping charge. Which of the following entries does Pierce make to record this sale? O Accounts Receivable-Stanton, debit $40; Sales, credit $40 Accounts Receivable-Stanton, debit $588; Sales, credit $588, and Accounts Receivable-Stanton, debit $40; Cash, credit $40 O Accounts Receivable-Stanton, debit $640; Sales, credit $640 O Accounts Receivable-Stanton, debit $40; Sales, credit $40, and Transportation Out, debit $600; Cash, credit $600

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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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
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.
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1. Merchandise with a list price of $7,425 is purchased on account, terms FOB shipping point, n/30. The seller prepaid transportation costs of $300. Prior to payment, $1,000 of the merchandise is returned. The correct amount is paid within the discount period.(net method) Record the foregoing transactions of the buyer in the sequence indicated below. a) Purchased the merchandise b) Recorded receipt of the credit memorandum for merchandise returned. c) Paid the amount owed.
Brightstone Company sold P1,800 of merchandise on account to Light Saver, Inc. on September 1 with credit terms of 2/10, n/30. Light Saver returned P500 of the merchandise due to poor quality on September 3. If Oscar pays for the purchase on September 11, what entry does Brightstone make to record receipt of the payment? a. Debit Cash, P1,800; credit Sales Returns and allowances, P500; credit Accounts Receivable, P1,300 b. Debit Cash, P1,274; debit Sales Discounts P26; credit Accounts Receivable, P1,300 c. Debit Cash, P1,764; credit Accounts Receivable, P1,764 d. Debit Cash, P1,800; credit Sales Discounts P36; credit Accounts Receivable, P1,764
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Journalize the entries for the following transactions: a. Sold merchandise for cash, 25400. The cost of the merchandise was 15240. (Record the sale first.) b. Sold merchandise on account, 10610. The cost of merchandise sold was 6370. (Record the sale first.) c. Sold merchandise to customers who used MasterCard and Visa, $117,060. The cost of the merchandise sold was $70,240. (Record the sale first.) d. Sold merchandise to customers who used American Express, $40,890. The cost of the merchandise sold was $24,530. (Record the sale first.) e. Paid $7,870 to National Clearing House Credit Co. for service fees for processing Mastercard, Visa, and American Express sales.
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