The following information is about a merchandise organization. Write journal entries under perpetual inventory system. July 1st Sold OMR 8,500 of merchandise on credit (Cost OMR 4,500), with terms 3/10, n/30. July 13th the customer returned OMR 75O worth of slightly demanded merchandise to the retailer and received a full refund. The retailer returned the merchandise to its inventory at a cost of OMR 150. July 15th the customer discovered some merchandise was the wrong color and received an allowance from the retailer of OMR 350 July 25th The customer paid the account in full

The following information is about a merchandise organization. Write journal entries under perpetual inventory system. July 1st Sold OMR 8,500 of merchandise on credit (Cost OMR 4,500), with terms 3/10, n/30. July 13th the customer returned OMR 75O worth of slightly demanded merchandise to the retailer and received a full refund. The retailer returned the merchandise to its inventory at a cost of OMR 150. July 15th the customer discovered some merchandise was the wrong color and received an allowance from the retailer of OMR 350 July 25th The customer paid the account in full

Name: The following information is about amerchandise organization. Write j
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: The following information is about amerchandise organization. Write journalentries under perpetual inventory system.July 1st Sold OMR 8,500 of merchandise oncredit (Cost OMR 4,500), with terms 3/10,n/30.July 13th the customer returned OMR 750worth o

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter9: Sales And Purchases

Section: Chapter Questions

Problem 7E: Record the following transactions for a perpetual inventory system in general journal form. a. Sold...

See similar textbooks

Related questions

Q: Prepare Journal entries to record each of the following sales transactions of a merchandising…

A: Increase in assets should be debited and decrease in assets should be credited. Increase in…

Q: Santa Fe Retailing purchased merchandise from Mesa Wholesalers with credit terms of 3/10, n/60 and…

A: TransactionNOTESa.For the purchase, we simply debit inventory or merchandise inventory then credit…

Q: Advanced Computer Parts uses the perpetual inventory system and the net method of recording sales…

A: The objective of the question is to determine the correct journal entry to record the payment…

Q: Apr. 1 Sold merchandise for $3,800, with credit terms n/30; invoice dated April 1. The cost of the…

A: A Journal entry is a primary entry that records the financial transactions initially. The…

Q: Sampson Co. sold merchandise to Batson Co. on account, $22,900, terms 2/15, net 45. The cost of the…

A: Cash discount = $22,900*2% Cash discount = $458 Sales after cash discount = $22,900 - $458 Sales…

Q: On March 6, Ayayai Company returned $91,500 of the merchandise purchased on March 2. The cost of the…

A: Using perpetual inventory system, the cost of goods sold ia recorded with every sales transaction.…

Q: Office Supplies Express uses a perpetual inventory system. Journalize the following sales…

A: Meaning of Perpetual Inventory System Under the Perpetual Inventory System, the company updates its…

Q: Prepare the journal entries to record the following transactions on Blossom Company's books using a…

A: Journal entries refer to the recording of transactions in an appropriate way. With the help of…

Q: Prepare the journal entries to record the following transactions on Blossom Company’s books using a…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: rnal entries to record the following merchandising transactions of Lowe's, which uses the perpetual…

A: Journal Entry The act of recording or keeping track of any financial or non-financial action is…

Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

Topic Video

Question

The following information is about a
merchandise organization. Write journal
entries under perpetual inventory system.
July 1st Sold OMR 8,500 of merchandise on
credit (Cost OMR 4,500), with terms 3/10,
n/30.
July 13th the customer returned OMR 750
worth of slightly demanded merchandise to
the retailer and received a full refund. The
retailer returned the merchandise to its
inventory at a cost of OMR 150.
July 15th the customer discovered some
merchandise was the wrong color and
received an allowance from the retailer of
OMR 350
July 25th The customer paid the account in
full

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

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.

Similar questions

Record the following transactions for a perpetual inventory system in general journal form. a. Sold merchandise on account to Southridge Manufacturing, Inc., invoice no. 6910, 1,815.24. The cost of merchandise was 1,320. b. Issued credit memorandum no. 56 to Southridge Manufacturing, Inc., for merchandise returned, 622. The cost of the merchandise was 485. c. Bought merchandise on account from Michals Inc., invoice no. 1685, 850; terms 1/10, n/30; dated April 14; FOB Dallas, freight prepaid and added to the invoice, 65.00 (total 915). d. Received credit memorandum no. 219 from Michals Inc. for merchandise returned, 210.
Sunrise Flowers sells flowers to a customer on credit for $130 on October 18, with a cost of sale to Sunrise of $50. What entry to recognize this sale is required if Sunrise Flowers uses a perpetual inventory system?
Beginning inventory, purchases, and sales for Item Widget are as follows: Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of merchandise sold on March 25 and (b) the inventory on March 31.
Beginning inventory, purchases, and sales for Item Gidget are as follows: Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on September 27 and (b) the inventory on September 30.
JOURNAL ENTRIES UNDER THE PERPETUAL INVENTORY SYSTEM Sunita Computer Supplies entered into the following transactions. Prepare journal entries under the perpetual inventory system. May 1 Purchased merchandise on account from Anju Enterprises, 200,000. 8 Purchased merchandise for cash, 100,000. 15 Sold merchandise on account to Salils Pharmacy for 8,000. The merchandise cost 5,000.
A retailer obtains a purchase allowance from the manufacturer in the amount of $600 for faulty inventory parts. Which of the following represents the journal entry for this transaction if the retailer has already remitted payment? A. B. C.
A retailer returns $400 worth of inventory to a manufacturer and receives a full refund. What accounts recognize this return before the retailer remits payment to the manufacturer? A. accounts payable, merchandise inventory B. accounts payable, cash C. cash, merchandise inventory D. merchandise inventory, cost of goods sold
The following transactions were completed by Nelsons Boutique, a retailer, during July. Terms on sales on account are 2/10, n/30, FOB shipping point. Required 1. Journalize the transactions for July in the cash receipts journal, the general journal (for the transaction on July 9th), or the cash payment journal as appropriate. Assume the periodic inventory method is used. 2. Total and rule the journals. 3. Prove the equality of debit and credit totals.
Preston Company sells candy wholesale, primarily to vending machine operators. Terms of sales on account are 2/10, n/30, FOB shipping point. The following transactions involving cash receipts and sales of merchandise took place in May of this year: Required 1. Journalize the transactions for May in the cash receipts journal and the sales journal. Assume the periodic inventory method is used. 2. If you are using Working Papers, total and rule the journals and prove the equality of the debit and credit totals.
Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc. A. On October 3, Sewing Masters Inc. purchases 800 yards of fabric (Fabric Inventory) at $9.00 per yard from a supplier, on credit. Terms of the purchase are 1/5, n/40 from the invoice date of October 3. B. On October 8, Sewing Masters Inc. purchases 300 more yards of fabric from the same supplier at an increased price of $9.25 per yard, on credit. Terms of the purchase are 5/10, n/20 from the invoice date of October 8. C. On October 18, Sewing Masters pays cash for the amount due to the fabric supplier from the October 8 transaction. D. On October 23, Sewing Masters pays cash for the amount due to the fabric supplier from the October 3 transaction.
Prepare journal entries to record the following transactions. A. November 19, purchased merchandise inventory, on account, $12,000 B. November 29, paid creditor for part of November 19 purchase, $10,000
Uncle Butchs Hunting Supply Shop reports the following information related to inventory: Calculate Uncle Butchs ending inventory using the retail inventory method under the FIFO cost flow assumption. Round the cost-to-retail ratio to 3 decimal places.