Prepare journal entries. 1. A customer charges a $1,000 purchase on a Visa credit card. Visa charges a 4 percent discount on sales. 2. Oct. 3. AJD Ltd received merchandise purchased on credit from NSD Company, terms n/10, FOB shipping point, $4,890. 3. AJD Ltd received bill from Transfer Freight Company for transportation costs on October 3 shipment, terms n/10, $160 4. AJD Ltd returned merchandise received from NSD Company on October 3 for credit, $480 5. AJD Ltd paid in full the amount due to NSD Company for the purchase of October 3, part of which was returned on October 6 6. Ivanka sold merchandise on credit to Gonzales Distributors, terms n/30, FOB destination, $1,200; the cost of the merchandise was $720 7. McGucken’s Software sold $1,354,000 of merchandise for cash and had credit sales totaling $2,658,000. It collected cash from customers in the amount of $3,396,000. McGucken’s received merchandise from suppliers invoiced at $1,100,000 and paid suppliers $900,000.
Prepare
1. A customer charges a $1,000 purchase on a Visa credit card. Visa charges a 4 percent discount on sales.
2. Oct. 3. AJD Ltd received merchandise purchased on credit from NSD Company, terms n/10, FOB shipping point, $4,890.
3. AJD Ltd received bill from Transfer Freight Company for transportation costs on October 3 shipment, terms n/10, $160
4. AJD Ltd returned merchandise received from NSD Company on October 3 for credit, $480
5. AJD Ltd paid in full the amount due to NSD Company for the purchase of October 3, part of which was returned on October 6
6. Ivanka sold merchandise on credit to Gonzales Distributors, terms n/30, FOB destination, $1,200; the cost of the merchandise was $720
7. McGucken’s Software sold $1,354,000 of merchandise for cash and had credit sales totaling
$2,658,000. It collected cash from customers in the amount of $3,396,000. McGucken’s received merchandise from suppliers invoiced at $1,100,000 and paid suppliers $900,000.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
