Selected transactions for Mason Corporation follow: Aug. 2 13 ate 26 28 Sold $15,000 of merchandise to Vanderbilt Inc., terms n/30. Mason uses a perpetual inventory system and the cost of the goods sold was $9,000. Mason's management expects a return rate of 6%. Merchandise with a selling price of $750 was returned by Vanderbilt because it was the wrong size. A credit was provided to Vanderbilt. The cost of the merchandise returned was $450. The returned goods were in saleable condition and returned to inventory. Received a partial payment of $10,500 from Vanderbilt. Made sales of $7,500 on account to Reisen Ltd., terms n/30. The cost of the goods sold was $4,500. Mason's management expects a return rate of 6%. Record the above transactions on Mason's books, including any cost of goods sold entries. (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 o for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit

Selected transactions for Mason Corporation follow: Aug. 2 13 ate 26 28 Sold $15,000 of merchandise to Vanderbilt Inc., terms n/30. Mason uses a perpetual inventory system and the cost of the goods sold was $9,000. Mason's management expects a return rate of 6%. Merchandise with a selling price of $750 was returned by Vanderbilt because it was the wrong size. A credit was provided to Vanderbilt. The cost of the merchandise returned was $450. The returned goods were in saleable condition and returned to inventory. Received a partial payment of $10,500 from Vanderbilt. Made sales of $7,500 on account to Reisen Ltd., terms n/30. The cost of the goods sold was $4,500. Mason's management expects a return rate of 6%. Record the above transactions on Mason's books, including any cost of goods sold entries. (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 o for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 37E: Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following...

See similar textbooks

Similar questions

Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following transactions: a. Made credit sales of $825,000. The cost of the merchandise sold was $560,000. b. Collected accounts receivable in the amount of $752,600. c. Purchased goods on credit in the amount of $574,300. d. Paid accounts payable in the amount of $536,200. Required: Prepare the journal entries necessary to record the transactions. Indicate whether each transaction increased cash, decreased cash, or had no effect on cash.
Shaquille Corporation began the current year with inventory of 50,000. During the year, its purchases totaled 110,000. Shaquille paid freight charges of 8,500 for those purchases. At the end of the year, Shaquille had inventory of 47,800. Prepare a schedule to determine Shaquille's cost of goods sold for the current year.
Discounts Nelson Company bought inventory for 50,000 on terms of 2/15, n/60. It pays for the first 37,500 of inventory purchased within the discount period and pays for the remaining 12,500 two months later. Required: 1. Prepare the journal entries to record the purchase and the payment under both the (a) gross price and (b) net price methods. Assume that Nelson uses the periodic inventory system. 2. Next Level Which of the two methods yields a conceptually preferable valuation of inventory?
a. Sampson Co. sold merchandise to Batson Co. on account, $36,000, terms 2/15, net 45. b. The cost of the goods sold is $27,000. c. The Batson Co. paid the invoice within the discount period. Assume both Sampson and Batson use a perpetual inventory system. If no entry is required, select "No entry required" and leave the amount boxes blank. Prepare the entries that Sampson Company would record for the information above. If an amount box does not require an entry, leave it blank. a. b. С. Accounting numeric field Prepare the entries that Batson Company would record for the information above. If an amount box does not require an entry, leave it blank. а. b. a.
Lindsey Corporation had the following account balances:Sales revenue $200,000Beginning inventory 40,000Purchases 80,000Purchase discounts 3,000Freight-in 1,000Ending inventory 30,000Purchases returns and allowances 2,000 With the perpetual inventory system, which of the following entries would be made when inventory costing $3,600 is sold for $5,000?a. Cost of goods sold 3,600Inventory 3,600b. Inventory 5,000Accounts payable 5,000c. Inventory 3,600Cost of goods sold 5,000Accounts payable 3,600Purchases 5,000d. Purchases 5,000
Ballard Company uses the perpetual inventory system. The company purchased $8,700 of merchandise from Andes Company under the terms 4/10, net/30. Ballard paid for the merchandise within 10 days and also paid $320 freight to obtain the goods under terms FOB shipping point. All of the merchandise purchased was sold for $16,400 cash. What is the amount of gross margin for this merchandise?
GW sold merchandise to Mulligans for $10,000, offering term of 1/15, n/30. mulligans paid for the merchandise within the discount period. both companies use perpetual inventory system. I need a. Prepare the journal entries in the accounting records of GW to accounts for this sale and the subsequent collection. Assume the original cost of merchandise to GW had been $6,500 b. Prepare jurnal entire in the accounting records of mulligans accounts for the purchase and subsequent paymen.t Mulligans records purchase merchandise at net cost. c. Assume that, because of a change in personnel, Mulligans failed to pay for this mechandise within the discount period. prepare journal entry in the accounting records of Mulligans to record payment after the discount period.
Hinds Company sold merchandise to Peter Company on account for $146,000 with credit terms of ?/10, n/30. The cost of the merchandise sold was $86,140. During the discount period, Peter Company returned $6,000 of merchandise and paid its account in full (minus the discount) by remitting $137,200 in cash. Both companies use a perpetual inventory system.Prepare the journal entries that Hinds Company made to record: (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)(1) the sale of merchandise.(2) the return of merchandise.(3) the collection on account. Transaction Account Titles and Explanation Debit Credit 1. (To record credit sale.) (To record cost of good sold.) 2. (To record returned goods.)…
Archer Co. completed the following transactions and uses a perpetual inventory system. Aug. 4 Sold $3,700 of merchandise on credit (that had cost $2,000) to McKenzie Carpenter, terms n∕10. 10 Sold $5,200 of merchandise (that had cost $2,800) to customers who used their Commerce Bank credit cards. Commerce charges a 3% fee. 11 Sold $1,250 of merchandise (that had cost $900) to customers who used their Goldman cards. Goldman charges a 2% fee. 14 Received Carpenter’s check in full payment for the August 4 purchase. 15 Sold $3,250 of merchandise (that had cost $1,758) to customers who used their Goldman cards. Goldman charges a 2% fee. 22 Wrote off the account of Craw Co. against the Allowance for Doubtful Accounts. The $498 balance in Craw Co.’s account was from a credit sale last year. Required Prepare journal entries to record the preceding transactions and events.
Dana Co. purchased S2,600 of merchandise from Mona Co. on April 10 with terms 2/10, n/30. On April 27, it returned $300 worth of merchandise. On May 6, it paid the full amount due to Mona Co. The journal entry to record the merchandise return on April 27 is: Debit Merchandise Inventory $300; credit Sales Returns $300 Debit Merchandise Inventory $2,300; credit Cash $2,300 O A. В. Debit Merchandise Inventory $300; credit Accounts Payable $300 Debit Accounts Payable $300; credit Merchandise Inventory $300 O C. OD. Activate Windows « Go to Settings to activate Winddws. > A Moving to another question will save this response.
JC Manufacturing purchased inventory for $4,400 and also paid a $320 freight bill. JC Manufacturing returned 45% of the goods to the seller and later took a 1% purchase discount. Assume JC Manufacturing uses a perpetual inventory system. What is JC Manufacturing's final cost of the inventory that it kept? (Round your answer to the nearest whole number.) OA. $1,960 OB. $2,716 OC. $2,570 OD. $2,396
Golf World sold merchandise to Mulligans for $10,000, offering terms of 1/15, n/30. Mulliganspaid for the merchandise within the discount period. Both companies use perpetual inventorysystems.a. Prepare journal entries in the accounting records of Golf World to account for this sale and thesubsequent collection. Assume the original cost of the merchandise to Golf World had been$6,500.00b. Prepare journal entries in the accounting records of Mulligans to account for the purchase andsubsequent payment. Mulligans records purchases of merchandise at net cost.c. Assume that, because of a change in personnel, Mulligans failed to pay for this merchandisewithin the discount period. Prepare the journal entry in the accounting records of Mulligans torecord payment after the discount period.