Preparing Seller's Journal Entries Brunson Merchandisers was organized on May 1. Sanchez Co. is a major customer (buyer) of Brunson (seller) products. Prepare journal entries to record the following transactions for Brunson assuming it uses a perpetual inventory system and the gross method. May 3 Brunson made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $10 cash per unit (for a total cost of $20,000). May 5 Brunson sold 1,500 of the units in inventory for $14 per unit (invoice total: $21,000) to Sanchez Co. under credit terms 2/10, n/60. The goods cost $15,000 to Brunson. May 7 Sanchez returns 125 units because they did not fit its needs (invoice amount: $1,750). Brunson restores the units, which cost $1,250, to its inventory. May 8 Sanchez discovers that 200 units are scuffed but are still of use and, therefore, keeps the units. Brunson gives a price reduction (allowance) and credits Sanchez's accounts receivable for $300 to compensate for the damage. May 15 Brunson receives payment from Sanchez for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount.

Preparing Seller's Journal Entries Brunson Merchandisers was organized on May 1. Sanchez Co. is a major customer (buyer) of Brunson (seller) products. Prepare journal entries to record the following transactions for Brunson assuming it uses a perpetual inventory system and the gross method. May 3 Brunson made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $10 cash per unit (for a total cost of $20,000). May 5 Brunson sold 1,500 of the units in inventory for $14 per unit (invoice total: $21,000) to Sanchez Co. under credit terms 2/10, n/60. The goods cost $15,000 to Brunson. May 7 Sanchez returns 125 units because they did not fit its needs (invoice amount: $1,750). Brunson restores the units, which cost $1,250, to its inventory. May 8 Sanchez discovers that 200 units are scuffed but are still of use and, therefore, keeps the units. Brunson gives a price reduction (allowance) and credits Sanchez's accounts receivable for $300 to compensate for the damage. May 15 Brunson receives payment from Sanchez for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount.

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Description: DateDescriptionDebitCredit Preparing Seller's Journal EntriesBrunson Merchandisers was organized on May 1. Sanchez Co. is a major customer (buyer) ofBrunson (seller) products. Prepare journal entries to record the following transactions forBrunson a

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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