### Educational Resource: Understanding Journal EntriesThe image displays a section of a journal entry form commonly used in accounting. Journal entries are essential for recording financial transactions in the books of accounts. Below is a transcription and explanation of the components shown in the image:**Journal Entry Form**| Date | Account Titles and Explanation | Debit | Credit ||------------|-----------------------------------------------|--------|--------|| Dec. 3 | (To record credit sale) | | || Dec. 8 | | | || (To record cost of merchandise sold) | | || Dec. 13 | | | |**Explanation:**1. **Date Column:** - **Dec. 3:** This date indicates when the transaction occurred. - **Dec. 8:** This date indicates another transaction in the sequence. - **Dec. 13:** This date signifies another distinct transaction.2. **Account Titles and Explanation Column:** - **Dec. 3: (To record credit sale):** This entry typically involves recording a sale made on credit. Commonly, it would include two accounts: - Accounts Receivable (Debit) - Sales Revenue (Credit) - **Dec. 8: (To record cost of merchandise sold):** This entry usually relates to the cost associated with the goods sold. Commonly, it would include: - Cost of Goods Sold (Debit) - Inventory (Credit)3. **Debit and Credit Columns:** - These columns are currently blank and would be filled in with the appropriate amounts corresponding to the accounts affected by the transactions.**eTextbook and Media:**At the bottom of the image, there is a section labeled 'eTextbook and Media,' which likely provides additional resources related to the content above.### Detailed Diagram Explanation:The diagram shown here is structured to help students understand the process of recording transactions in journal entries, which is a fundamental practice in accounting. Each row represents a separate transaction with corresponding accounts and amounts that need to be entered in either the debit or credit column based on the nature of the transaction.- **Date:** When the transaction occurred.- **Account Titles and Explanation:** The specific accounts impacted and a brief description.- **Debit:** The amount to be debited.- **Credit:** The amount to be credited.Students will benefit from practicing with such ### Transactions Related to Concord CorporationPresented below are transactions related to Concord Corporation.1. **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 $351,200.2. **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.---**Journal Entries Preparation:**Prepare the journal entries to record these transactions on the books of Concord Corporation using a perpetual inventory system.*Note: Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.*| Date | Account Titles and Explanation | Debit | Credit ||-----------|-------------------------------------------------------------------------------|-------------|-------------|| Dec. 3 | | | || | (To record credit sale) | | || Dec. 8 | | | || Dec. 13 | | | |

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Description: ### Educational Resource: Understanding Journal EntriesThe image displays a section of a journal entry form commonly used in accounting. Journal entries are essential for recording financial transactions in the books of accounts. Below is a transcri

>Under perpetual inventory system, the Inventory account is updated after every purchase and…

Business

Accounting

Presented below are transactions related to Concord Corporation. 1. 2. 3. (a) 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. On December 13, Concord Corporation received the balance due from Sarasota Co. 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 Dec. 8 Account Titles and Explanation (To record credit sale) Debit Credit

Presented below are transactions related to Concord Corporation. 1. 2. 3. (a) 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. On December 13, Concord Corporation received the balance due from Sarasota Co. 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 Dec. 8 Account Titles and Explanation (To record credit sale) Debit Credit

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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23. Sampson Co. sold merchandise to Batson Co. on account, $46,000, terms 2/15, net 45. The cost of the merchandise sold is $38,500. The Batson Co. paid the invoice within the discount period. Prepare the entries that both Sampson and Batson Companies would record for the above.
ABC Company is a merchandising firm. On June 3, the company sells, on account, merchandise for $2,200, credit terms 2/10, n/30. The cost of merchandise sold is $1,200. On June 8, ABC Company collects the amount due from June 3 sale. Which of the following is correct regarding the journal entry to record the transaction on June 8:
Presented below are selected transactions of Pina Colada Company. Pina Colada sells in large quantities to other companies and also sells its product in a small retail outlet. March 1 Sold merchandise on account to Dodson Company for $13,600, terms 6/10, n/30. 3- Dodson Company returned merchandise worth $1,200 to Pina Colada. Pina Colada collected the amount due from Dodson Company from the March 1 sale. Pina Colada sold merchandise for $3,000 in its retail outlet. The customer used his Pina Colada credit card. Pina Colada added 1.0% monthly interest to the customer's credit card balance. 9 15 31 Prepare journal entries for the transactions above. (Ignore cost of goods sold entries and explanations.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit 111
Shore Co. sold merchandise to Blue Star Co. on account, $112,000, terms FOB shipping point, n/30. The cost of the goods sold is $67,200. Shore paid freight of $1,800. Shore Co. issued a credit memo for $7,500 to Blue Star Co. for merchandise that was returned. The cost of the merchandise returned was $4,000. Journalize Shore Co.'s entry for the sale, credit memo, and payment of amount due. If an amount box, does not require an entry, leave it blank. Sale Credit Memo Payment 00 00 00 00 00 00 00 00 00 00 00 00
The following transactions are for Wildhorse Company. 1. On December 3, Wildhorse Company sold $584,300 of merchandise to Swifty Co., on account, terms 2/10, n/30, FOB destination. Wildhorse paid $370 for freight charges. The cost of the merchandise sold was $359,300. 2. On December 8, Swifty Co. was granted an allowance of $21,300 for merchandise purchased on December 3. 3. On December 13, Wildhorse Company received the balance due from Swifty Co. 1. Prepare the journal entries to record these transactions on the books of Wildhorse Company using a perpetual inventory system 2. Assume that Wildhorse Company received the balance due from Swifty Co. on January 2 of the following year instead of December 13. Prepare the journal entry to record the receipt of payment on January 2.
am. 103.
Record the following selected transactions: a. Sold $900 of merchandise on account, subject to 7% sales tax. The cost of the goods sold was $510. b. Paid $436 to the state sales tax department for taxes collected. Required: Journalize the entries. Refer to the Chart of Accounts for exact wording of account titles. Chart of Accounts CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 120 Accounts Receivable 125 Notes Receivable 130 Inventory 131 Estimated Returns Inventory 140 Supplies 142 Prepaid Insurance 180 Land 190 Equipment 191 Accumulated Depreciation LIABILITIES 210 Accounts Payable 216 Salaries Payable 221 Sales Tax Payable 222 Customers Refunds Payable 231 Unearned Rent 241 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends REVENUE 410 Sales EXPENSES 510 Cost of Goods Sold 521 Delivery Expense 522…
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Company X sold merchandise for $50,000 with terms 3/30, n/90 on January 1. On January 29, Company X received half the payment in cash. On March 1, they received the remaining half. Prepare the journal entries to record the sale and the receipt of cash under (1) the gross method and (2) the net method. What effect does using the gross method vs. the net method have on the company’s current ratio after the sale? After the receipt of cash?
On March 12, Klein Company sold merchandise in the amount of $7,800 to Babson Company, with credit terms 2/10, n30. The cost of the items sold is $4,500. Klein uses PERPETUAL inventory system and the GROSS METHOD of accounting for sales. Babson pays the invoice on March 17th and takes the appropriate discount. What is the journal entry Klein makes on March 17th?