Sheffield Home Electronics Corp. completed the following merchandising transactions in the month of July 2024. At the beginning of July, Sheffield's ledger showed Cash $28,000; Accounts Receivable $12,600; Inventory $15,400; Common Shares $25,200; and Retained $30,800. Sheffield Home has experienced a return rate of 2% of sales and uses a perpetual inventory system. July 2 2 Purchased merchandise on account from Al Gadgets Inc. for $19,600, terms 2/10. n/30, FOB shipping point. Freight charges of $700 were paid by the appropriate party on the merchandise purchased on July 4. Collected $4,200 of the accounts receivable outstanding at the beginning of the month. All accounts were originally sold on terms of n/30. Paid a $250 cash refund to customers for returned merchandise. The cost of the returned merchandise was $80. It was restored to inventory. Received a $1,120 credit from Al Gadgets when merchandise was returned. Sold merchandise to various customers for $9,800 cash. The cost of the merchandise was $2,800. Purchased merchandise from Virtual Trainers Inc. for $16,800, terms n/30, FOB destination. Freight of $280 was paid by the appropriate party on the July 16 purchase of merchandise. Paid Al Gadgets in full. 27 Received payment in full from Home Security Ltd. for merchandise sold on account on July 2. Purchased supplies for $1,960 cash. A physical inventory count was taken and determined that there was $39,200 of inventory on hand. Prepare any adjustment required. 5 8 9 11 13 16 17 18 30 31 Sold merchandise on account to Home Security Ltd. for $12,600, terms n/45, FOB destination. The cost of the merchandise was $8,400. Freight charges of $280 were paid by the appropriate party on the merchandise sold. Record the July transactions. (List all debit entries before credit 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 presented in the problem.) Date July 2 Account Titles and Explanation (To record sale of goods on account) Debit Credit
Sheffield Home Electronics Corp. completed the following merchandising transactions in the month of July 2024. At the beginning of July, Sheffield's ledger showed Cash $28,000; Accounts Receivable $12,600; Inventory $15,400; Common Shares $25,200; and Retained $30,800. Sheffield Home has experienced a return rate of 2% of sales and uses a perpetual inventory system. July 2 2 Purchased merchandise on account from Al Gadgets Inc. for $19,600, terms 2/10. n/30, FOB shipping point. Freight charges of $700 were paid by the appropriate party on the merchandise purchased on July 4. Collected $4,200 of the accounts receivable outstanding at the beginning of the month. All accounts were originally sold on terms of n/30. Paid a $250 cash refund to customers for returned merchandise. The cost of the returned merchandise was $80. It was restored to inventory. Received a $1,120 credit from Al Gadgets when merchandise was returned. Sold merchandise to various customers for $9,800 cash. The cost of the merchandise was $2,800. Purchased merchandise from Virtual Trainers Inc. for $16,800, terms n/30, FOB destination. Freight of $280 was paid by the appropriate party on the July 16 purchase of merchandise. Paid Al Gadgets in full. 27 Received payment in full from Home Security Ltd. for merchandise sold on account on July 2. Purchased supplies for $1,960 cash. A physical inventory count was taken and determined that there was $39,200 of inventory on hand. Prepare any adjustment required. 5 8 9 11 13 16 17 18 30 31 Sold merchandise on account to Home Security Ltd. for $12,600, terms n/45, FOB destination. The cost of the merchandise was $8,400. Freight charges of $280 were paid by the appropriate party on the merchandise sold. Record the July transactions. (List all debit entries before credit 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 presented in the problem.) Date July 2 Account Titles and Explanation (To record sale of goods on account) Debit Credit
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter8: Revenue Recognition, Receivables, And Advances From Customers
Section: Chapter Questions
Problem 45P
Related questions
Question
Transcribed Image Text:Sheffield Home Electronics Corp. completed the following merchandising transactions in the month of July 2024. At the beginning of July, Sheffield's ledger showed Cash $28,000; Accounts Receivable $12,600; Inventory $15,400; Common Shares $25,200; and Retained
$30,800. Sheffield Home has experienced a return rate of 2% of sales and uses a perpetual inventory system.
5
July 2
2
4
5
8
9
11
13
16
17
18
27
30
31
Date
Record the July transactions. (List all debit entries before credit 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
presented in the problem.)
July 2
Sold merchandise on account to Home Security Ltd. for $12,600, terms n/45, FOB destination. The cost of the merchandise was $8,400.
Freight charges of $280 were paid by the appropriate party on the merchandise sold.
July 4
Purchased merchandise on account from Al Gadgets Inc. for $19,600, terms 2/10. n/30, FOB shipping point.
Freight charges of $700 were paid by the appropriate party on the merchandise purchased on July 4.
Collected $4,200 of the accounts receivable outstanding at the beginning of the month. All accounts were originally sold on terms of n/30.
Paid a $250 cash refund to customers for returned merchandise. The cost of the returned merchandise was $80. It was restored to inventory.
Received a $1,120 credit from Al Gadgets when merchandise was returned.
Sold merchandise to various customers for $9,800 cash. The cost of the merchandise was $2,800.
Purchased merchandise from Virtual Trainers Inc. for $16,800, terms n/30, FOB destination.
Freight of $280 was paid by the appropriate party on the July 16 purchase of merchandise.
Paid Al Gadgets in full.
Received payment in full from Home Security Ltd. for merchandise sold on account on July 2.
Purchased supplies for $1,960 cash.
A physical inventory count was taken and determined that there was $39,200 of inventory on hand. Prepare any adjustment required.
Account Titles and Explanation
(To record sale of goods on account)
Debit
Credit
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT