[The following information applies to the questions displayed below.] Reyes Books, is a student co-op. Reyes Books uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $159,070). $ 288,750 b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $620). 1,670 c. Sold merchandise (costing $9,450) to a customer on account with terms n/30. 21,000 d. Collected half of the balance owed by the customer in (c). 10,500 e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. 1,200 f. Anticipate further returns of merchandise (costing $210) after month-end from sales made during the month. 750 Prepare journal entries to record transactions (a) to (f). (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
[The following information applies to the questions displayed below.] Reyes Books, is a student co-op. Reyes Books uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $159,070). $ 288,750 b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $620). 1,670 c. Sold merchandise (costing $9,450) to a customer on account with terms n/30. 21,000 d. Collected half of the balance owed by the customer in (c). 10,500 e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. 1,200 f. Anticipate further returns of merchandise (costing $210) after month-end from sales made during the month. 750 Prepare journal entries to record transactions (a) to (f). (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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[The following information applies to the questions displayed below.]
Reyes Books, is a student co-op. Reyes Books uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis:
| a. Sold merchandise for cash (cost of merchandise $159,070). | $ 288,750 |
|---|---|
| b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $620). | 1,670 |
| c. Sold merchandise (costing $9,450) to a customer on account with terms n/30. | 21,000 |
| d. Collected half of the balance owed by the customer in (c). | 10,500 |
| e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. | 1,200 |
| f. Anticipate further returns of merchandise (costing $210) after month-end from sales made during the month. | 750 |
- Prepare journal entries to record transactions (a) to (f). (If no entry is required for a transaction/event, select "No
Journal Entry Required" in the first account field.)
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