Review each transaction below and indicate whether you agree or disagree with how the bookkeeper accounted for the transaction. June 10 11 12 A purchase of $3,700 of merchandise from Dan Dan Distributors was debited to Purchases and credited to Cash. The terms of the purchase were 2/10, n/30, FOB shipping point. The invoice for freight in the amount of $215 for the delivery of merchandise purchased from DanDan was paid and was debited to Delivery Expense. Damaged goods totalling $100 were returned to Dan Dan Distributors for credit. The bookkeeper recorded a debit to Accounts Receivable and a credit to Sales Returns and Allowances. 10 V
Review each transaction below and indicate whether you agree or disagree with how the bookkeeper accounted for the transaction. June 10 11 12 A purchase of $3,700 of merchandise from Dan Dan Distributors was debited to Purchases and credited to Cash. The terms of the purchase were 2/10, n/30, FOB shipping point. The invoice for freight in the amount of $215 for the delivery of merchandise purchased from DanDan was paid and was debited to Delivery Expense. Damaged goods totalling $100 were returned to Dan Dan Distributors for credit. The bookkeeper recorded a debit to Accounts Receivable and a credit to Sales Returns and Allowances. 10 V
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter10: Cash Receipts And Cash Payments
Section: Chapter Questions
Problem 5PB: The following transactions were completed by Nelsons Hardware, a retailer, during September. Terms...
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Question
![Review each transaction below and indicate whether you agree or disagree with how the bookkeeper accounted for the
transaction.
June 10
11
12
20
July 15
15
17
A purchase of $3,700 of merchandise from Dan Dan Distributors was debited to Purchases and
credited to Cash. The terms of the purchase were 2/10, n/30, FOB shipping point.
The invoice for freight in the amount of $215 for the delivery of merchandise purchased from
DanDan was paid and was debited to Delivery Expense.
Damaged goods totalling $100 were returned to Dan Dan Distributors for credit. The
bookkeeper recorded a debit to Accounts Receivable and a credit to Sales Returns and
Allowances.
A payment was made to DanDan Distributors for the June 10 purchase. The payment was a
debit to Purchases and a credit to Cash.
Sandhill sold goods for $9,225; Sales was credited and Cost of Goods Sold was debited for this
amount. The cost of the inventory sold was $3,600. The terms of the sale were 1/15, n/30, FOB
destination.
Freight charges on the above transaction were debited to Accounts Receivable and credited to
Cash for $225. The bookkeeper believed the customer had to pay for the freight charges.
Sandhill's manager gave the customer from July 15 a $400 allowance. The entry made to
record the allowance was a debit to Sales and a credit to Sales Returns and Allowances.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa88bf46b-f74d-435d-a468-e4eb3dc96abc%2F1a81f822-b81c-485b-8007-c45e4355ea2e%2Ft6m90i8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Review each transaction below and indicate whether you agree or disagree with how the bookkeeper accounted for the
transaction.
June 10
11
12
20
July 15
15
17
A purchase of $3,700 of merchandise from Dan Dan Distributors was debited to Purchases and
credited to Cash. The terms of the purchase were 2/10, n/30, FOB shipping point.
The invoice for freight in the amount of $215 for the delivery of merchandise purchased from
DanDan was paid and was debited to Delivery Expense.
Damaged goods totalling $100 were returned to Dan Dan Distributors for credit. The
bookkeeper recorded a debit to Accounts Receivable and a credit to Sales Returns and
Allowances.
A payment was made to DanDan Distributors for the June 10 purchase. The payment was a
debit to Purchases and a credit to Cash.
Sandhill sold goods for $9,225; Sales was credited and Cost of Goods Sold was debited for this
amount. The cost of the inventory sold was $3,600. The terms of the sale were 1/15, n/30, FOB
destination.
Freight charges on the above transaction were debited to Accounts Receivable and credited to
Cash for $225. The bookkeeper believed the customer had to pay for the freight charges.
Sandhill's manager gave the customer from July 15 a $400 allowance. The entry made to
record the allowance was a debit to Sales and a credit to Sales Returns and Allowances.
![The following transactions were recorded by an inexperienced bookkeeper during the months of June and July for Sandhill Company.
Sandhill Company uses a perpetual inventory system.
June 10
11
12
20
July 15
15
17
A purchase of $3,700 of merchandise from DanDan Distributors was debited to Purchases and credited to Cash. The
terms of the purchase were 2/10, n/30, FOB shipping point.
The invoice for freight in the amount of $215 for the delivery of merchandise purchased from DanDan was paid and
was debited to Delivery Expense.
Damaged goods totalling $100 were returned to DanDan Distributors for credit. The bookkeeper recorded a debit to
Accounts Receivable and a credit to Sales Returns and Allowances.
A payment was made to DanDan Distributors for the June 10 purchase. The payment was a debit to Purchases and a
credit to Cash.
Sandhill sold goods for $9,225; Sales was credited and Cost of Goods Sold was debited for this amount. The cost of the
inventory sold was $3,600. The terms of the sale were 1/15, n/30, FOB destination.
Freight charges on the above transaction were debited to Accounts Receivable and credited to Cash for $225. The
bookkeeper believed the customer had to pay for the freight charges.
Sandhill's manager gave the customer from July 15 a $400 allowance. The entry made to record the allowance was a
debit to Sales and a credit to Sales Returns and Allowances.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa88bf46b-f74d-435d-a468-e4eb3dc96abc%2F1a81f822-b81c-485b-8007-c45e4355ea2e%2F0vrez1qq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The following transactions were recorded by an inexperienced bookkeeper during the months of June and July for Sandhill Company.
Sandhill Company uses a perpetual inventory system.
June 10
11
12
20
July 15
15
17
A purchase of $3,700 of merchandise from DanDan Distributors was debited to Purchases and credited to Cash. The
terms of the purchase were 2/10, n/30, FOB shipping point.
The invoice for freight in the amount of $215 for the delivery of merchandise purchased from DanDan was paid and
was debited to Delivery Expense.
Damaged goods totalling $100 were returned to DanDan Distributors for credit. The bookkeeper recorded a debit to
Accounts Receivable and a credit to Sales Returns and Allowances.
A payment was made to DanDan Distributors for the June 10 purchase. The payment was a debit to Purchases and a
credit to Cash.
Sandhill sold goods for $9,225; Sales was credited and Cost of Goods Sold was debited for this amount. The cost of the
inventory sold was $3,600. The terms of the sale were 1/15, n/30, FOB destination.
Freight charges on the above transaction were debited to Accounts Receivable and credited to Cash for $225. The
bookkeeper believed the customer had to pay for the freight charges.
Sandhill's manager gave the customer from July 15 a $400 allowance. The entry made to record the allowance was a
debit to Sales and a credit to Sales Returns and Allowances.
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