repare journal entries on the Basim plc books to record sales and receivables all the events noted above under each of the following bases. Sales and receivables are entered at gross selling price. 2. Sales and receivables are entered at net of cash discounts
Q: Elkhorn Company purchased merchandise on account from Springhill Company for $42,000, terms 2/10,…
A: Accounts payable are the suppliers from whom a company purchases its raw material or input stock. In…
Q: On September 12, Fang Company sold merchandise of $5,800 to Brown Company, with credit terms of…
A: Sales discount is an attempt to attract customers to make each payments for credit sales on time. It…
Q: Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, $55,000, terms…
A: Journal: It is the systematic record of a financial transactions of a business recorded in a…
Q: User Rancho Furniture completed the following transactions relating to the purchase of merchandise…
A: Summary of Findings:COGS for August: $556,864Goods Available for Sale: $644,664Account Payable to…
Q: Merchandise with a sales price of $1,100 is sold on account with terms 2/10, n/30. The journal entry…
A: 2/10, n/30 indicates that a discount of 2% will be given if payment is received within 10 days and…
Q: Schofield Co. sold merchandise on account to Bernard Retail Inc. for $15,000, terms 2/10, n/30. The…
A: Merchandise inventory refers to the cost of goods that are readily available for sale at some random…
Q: On March 1, Lincoln sold merchandise on account to Marigold Company for $29,000, terms 1/10, net 45.…
A: (1) Debit what comes in, Credit what goes out. (2) Debit all expenses and losses, Credit all…
Q: Bennett Retailers had the following transactions in November and December: November 20 Sold 20 items…
A: Net sales : Net sales of a company or a business entity refers to the net amount that remains after…
Q: Laurel Industries sold merchandise with an invoice price of $1,700 to Calvary Company, with terms of…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: A sales invoice included the following information: merchandise price, $7,100; terms 1/10, n/eom;…
A: The amount of cash that should be received by the seller = Invoice price + Freight charges –…
Q: The following transactions are for Kingbird Company. 1. On December 3, Kingbird Company sold…
A: Perpetual Inventory System: The perpetual inventory system involves tracking inventory after every,…
Q: Record the following sales transactions in general journal form on the books of Collins Company (the…
A: The answer has been presented in the supporting sheets. All the parts has been solved with detailed…
Q: a ccompany purchased $1,800 of merchandise on July 5, with terms 2/10, n/30. On july 7. it returned…
A: Discount on payment = (Purchases - purchase return) x discount rate = (1800-200)*2% = $32
Q: Levine Company uses the perpetual inventory system. April 8 Sold merchandise for $5,500 (that had…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Senger Company sold merchandise of $19,500, terms n/30, to Burris Inc. on April 12. Burris paid…
A: The objective of the question is to understand how to journalize the entries for a customer refund…
Q: Barans Company purchased merchandise on account from Springhill Company for $10,600, terms 2/10,…
A: Net Purchases = Purchases - Purchase return = $10,600 - $2,200 = $8,400
Q: A company purchased $2,400 of merchandise on July 5 with terms 3/10, n/30. On July 7, it returned…
A: Step 1: It is given that the company is following perpetual inventory system to record the journal…
Q: The following transactions are for Blossom Company. 1. On December 3, Blossom Company sold…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. May 11…
A: The journal entries are prepared to record the transactions on regular basis. The cash discount is…
Q: Wiset Company completes these transactions during April of the current year (the terms of all its…
A: "Since you have asked a question with sub-parts more than three, as per guidelines, the first three…
Q: Merchandise with a list price of $4,200 and costing $2,300 is sold on account, subject to the…
A: Solution: a) & b) Date Particulars Debit Credit Account Receivable A/c 4,200 To…
Q: Required: Compute the amount of Net Sales to be reported for the month ended July 31. (Round your…
A: Sales revenue refers to the amount received by the company from selling goods and services to the…
Q: On June 3, Culver plc sold to Arquette Company merchandise having a sales price of £ 3,200 with…
A: In the gross method of recording, the discount allowed should be recorded at the time of the amount…
Q: Mathis Company and Reece Company use the periodic system. The following transactions occurred during…
A: 1. Journal entry to record the April 1 purchase of merchandise and payment of freight by Mathis will…
Q: Santa Fe Retailing purchased merchandise from Mesa Wholesalers with credit terms of 3/10, n/60 and…
A: Lets understand the basics.The journal entries are prepared to record the transactions on regular…
Q: The following transactions are for Skysong Company. 1. On December 3, Skysong Company sold…
A: Journalize the given entries:
Q: Goods costing $20,000 are purchased on account on April 1, 2021, with credit terms 2/10 n/30. On…
A: Given that, $20,000 are purchased on account on April 1, 2021 credit terms 2/10 n/30 On April 3, a…
Q: December 20-1, TJ’s Specialty Shop engaged in the following transactions: Dec. 16 Received payment…
A: Income Statement - An income statement offers useful information about a company's operations,…
Q: Consider the following perpetual system merchandising transactions of Belton Company. Use a separate…
A: The objective of the question is to prepare the general journal entries for the given transactions…
Q: On June 3, Larkspur Company sold to Chester Company merchandise having a sale price of $6,000 with…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. May 11…
A: Journal Transactions for Sydney Retailing (buyer)Date DebitCredit11-MayInventory$22,500…
Q: Pharoah Company sells merchandise on account for $3600 to Morton Company with credit terms of 2/14,…
A: Whenever goods in the business are sold on credit, then Accounts receivable should be debited and…
Q: A sales invoice included the following information: merchandise price, $11,800; terms 1/10, n/eom;…
A: Sales - Return = Net Sales Merchandise Price = $11,800 Prepaid Freight = $560 Merchandise…
Q: Levine Company uses the perpetual inventory system. Apr. 8 Sold merchandise for $9,800…
A: 1. Journal Entries - Journal Entries are records of the company transactions. It is recorded in the…
Q: Record the following transaction for Robert Corporation in general journal form. Nov. 14 Bought…
A: Perpetual inventory system is the method of recording stores balances after every receipts and issue…
Q: The Stationery Company purchased merchandise on account from a supplier for $9,300, terms 1/10,…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: nces Levine Company uses the perpetual inventory system. April 8 Sold merchandise for $8,500 (that…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: Levine Company uses the perpetual inventory system. April 8 Sold merchandise for $3,400 (that had…
A: Journal entry is the act of keeping records of transactions in an accounting journal. An accounting…
Q: A sales invoice included the following information: merchandise price, $9,000; terms 1/10, n/eom;…
A: The seller is a person who sells the goods and would receive money for the goods sold.
Q: Ali Co. uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: On June 3, Marigold Company sold to Chester Company merchandise having a sale price of $3,800 with…
A: Rules for EntriesPersonal Account: Related to Person or Firm.Receiver will be debited and Giver will…
Q: On March 2, Blossom Company sold $960,000 of merchandise on account to Pina Company, terms 3/10,…
A: ACCOUNTS RECEIVABLEAccounts Receivable are reported under the Current Assets section of the Balance…
Q: On May 10, Blossom Company sold merchandise for $4,500 and accepted the customer's Best Business…
A: Journal entry is the first stage of accounting process.Journal entry used to record business…
Q: Levine Company uses the perpetual inventory system. April 8 Sold merchandise for $3,400 (that had…
A: JOURNAL ENTRIESJournal Entry is the First stage of Accounting Process. Journal Entry is the Process…
Q: on june 3, concord comoany sold to chester merchandise having a sale price of $5,500 with terms…
A: Using gross method, the sales transactions are recorded at gross amount and discount is recorded at…
Q: Shore Co. sold merchandise to Blue Star Co. on account, $112,000, terms FOB shipping point, n/30.…
A: Sales contracts utilise the shipping term FOB (Free on Board) to specify the point at which the…
- On June 3, Basim plc sold to Ahmed Company merchandise having a sales price of £2,000 with terms of 2/10, n/60. An invoice totaling £90, terms n/30, was received by Ahmed on June 8 from Jasim Transport Service for the freight cost. On June 12, the company received a check for the balance due from Ahmed Company.
Instructions: Prepare
- Sales and receivables are entered at gross selling price.
2. Sales and receivables are entered at net of cash discounts
Step by step
Solved in 3 steps with 3 images
- On June 3, Pearl Company sold to Chester Company merchandise having a sale price of $5,600 with terms of 3/10, n/60, f.o.b. shipping point. An invoice totaling $95, terms n/30, was received by Chester on June 8 from John Booth Transport Service for the freight cost. On June 12, the company received a check for the balance due from Chester Company. (a) Prepare journal entries on the Pearl Company books to record all the events noted above under each of the following bases. (1) Sales and receivables are entered at gross selling price. (2) Sales and receivables are entered at net of cash discounts.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 $285Levine Company uses the perpetual inventory system. April 8 Sold merchandise for $8,700 (that had cost $6,429) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee. April 12 Sold merchandise for $8,000 (that had cost $5,184) and accepted the customer's Continental Card. Continental charges a 2.5% fee. Prepare journal entries to record the above credit card transactions of Levine Company. (Round your answers to the nearest whole dollar amount.)
- Record the following transactions in general journal form for Ford Education Outfitters and Romero Textbooks, Inc. Ford Educational Outfitters bought merchandise on account from Romero Textbooks, Inc., invoice no. 10594, $1,888.13; terms net 30 days; FOB destination. Romero Textbooks, Inc., paid $90.31 for shipping. Ford Education Outfitters received credit memo no. 513A from Romero Textbooks, Inc., for merchandise returned, $149.93. Required: 1. For Ford Education Outfitters. Round your answers to the nearest cent. GENERAL JOURNAL PAGE DATE DESCRIPTION DOC. NO. POST. REF. DEBIT CREDIT (a) Purchased merchandise from Romero Textbooks, Inc., invoice no. 10594, terms n/30. (b) Credit memo no. 513A for return of merchandise. 2. For Romero Textbooks, Inc. Round your answers to the nearest cent.…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.On December 22, Travis Company purchased merchandise on account from a supplier for $7,500, terms 2/10, net 30. Travis Company paid for the merchandise within the discount period on December 31. Required: Under a perpetual inventory system, record the journal entries required for the above transactions. Refer to the Chart of Accounts for exact wording of account titles. Chart of Accounts CHART OF ACCOUNTS Travis Company General Ledger ASSETS 110 Cash 120 Accounts Receivable 125 Notes Receivable 130 Merchandise 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 313 Income Summary REVENUE…
- On December 28, 20Y3, Silverman Enterprises sold $20,000 of merchandise to Beasley Co. with terms n/30. The cost of the goods sold was $12,000. On December 31, 20Y3, Silverman prepared its adjusting entries, yearly financial statements, and closing entries. On January 3, 20Y4, Silverman Enterprises issued Beasley Co. a credit memo for returned merchandise. The invoice amount of the returned merchandise was $4,000 and the merchandise originally cost Silverman Enterprises $2,350. Question Content Area a. Journalize the entries by Silverman Enterprises to record the December 28, 20Y3, sale. If an amount box does not require an entry, leave it blank. b. Journalize the entries by Silverman Enterprises to record the merchandise returned by Beasley Co. on January 3, 20Y4. If an amount box does not require an entry, leave it blank.On December 28, 20Y3, Silverman Enterprises sold $17,500 of merchandise to Beasley Co. with terms 2/10, n/30. The cost of the goods sold was $11,900. On December 31, 20Y3, Silverman prepared its adjusting entries, yearly financial statements, and closing entries. On January 3, 20Y4, Silverman Enterprises issued Beasley Co. a credit memo for returned merchandise. The invoice amount of the returned merchandise was $4,400 and the merchandise originally cost Silverman Enterprises $2,450. a. Journalize the entries by Silverman Enterprises to record the December 28, 20Y3 sale, using the net method under a perpetual inventory system. If an amount box does not require an entry, leave it blank. 20Y3 Dec. 28 20Y3 Dec. 28 b. Journalize the entries by Silverman Enterprises to record the merchandise returned by Beasley Co. on January 3, 20Y4. If an amount box does not require an entry, leave it blank. 20Y4 Jan. 3 20Y4 Jan. 3 c. Journalize the entry to record the receipt of the amount due by Beasley…Review the following situations and record any necessary journal entries for Letter Depot. Mar. 9 Letter Depot purchases $11,480 worth of merchandise on credit from a manufacturer. Shipping charges are an extra $460 cash. Terms of the purchase are 2/10, n/40, FOB Destination, invoice dated March 9. Mar. 20 Letter Depot sells $7,500 worth of merchandise to a customer who pays on credit. The merchandise has a cost to Letter Depot of $2,850. Shipping charges are an extra $420 cash. Terms of the sale are 3/15, n/50, FOB Destination, invoice dated March 20. If an amount box does not require an entry, leave it blank. Assume the perpetual inventory system is used.
- Record the following transactions on the books of Pharoah Co. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) a. b. C. a. b. С. On July 1, Pharoah Co. sold merchandise on account to Waegelein Inc. for $16,600, terms 4/10, n/30. On July 8, Waegelein Inc. returned merchandise with a sales price of $5,300 to Pharoah Co. On July 11, Waegelein Inc. paid the balance due. Account Titles and Explanation Debit CreditJournalize 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.Review the following transactions. A. On April 7, Tolbert Enterprises contracts with a supplier to purchase 330 water bottles for their merchandise inventory, on credit, for $14 each. Credit terms are 2/10, n/60 from the invoice date of April 7. B. On April 15, Tolbert pays the amount due in cash to the supplier. Prepare any necessary journal entries for Tolbert Enterprises. If an amount box does not require an entry, leave it blank. Apr. 7 Apr. 15