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The following selected transactions occurred for Benton Corporation. The company uses a perpetual inventory system, has a May 31 year end, and adjusts its accounts annually. Feb. 1 3 26 Mar. 6 27 Apr. 3 May 27 31 Sold merchandise for $8,500 on account (n/30) to Morgan Ltd. The cost of goods sold was $6,375. Sold $13,200 of merchandise costing $9,700 to Gauthier Company and accepted Gauthier's two-month, 6% note in payment. Interest is due at maturity. Sold $12,000 of merchandise to Mathias Corp., terms n/30. The cost of the merchandise sold was $7,100. Sold, on account (n/30), $4,200 of merchandise that cost $2,700 to Superior Limited. Accepted a two-month, 7%, $12,000 note from Mathias in settlement of its account. (See February 26 transaction.) Interest is due at maturity. Collected the Gauthier note in full. (See February 3 transaction.) The Mathias note of March 27 was dishonoured. It is expected that Mathias will eventually pay the amount owed. Recorded accrued interest for three months on outstanding interest on the receivables overdue from Morgan and Superior. Interest on unpaid receivables is charged at 24% per annum ( 2% per month). (See February 1 and March 6 transactions.) Record the above transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when 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. Round answers to the nearest whole dollar, e.g. 5,275.)

The following selected transactions occurred for Benton Corporation. The company uses a perpetual inventory system, has a May 31 year end, and adjusts its accounts annually. Feb. 1 3 26 Mar. 6 27 Apr. 3 May 27 31 Sold merchandise for $8,500 on account (n/30) to Morgan Ltd. The cost of goods sold was $6,375. Sold $13,200 of merchandise costing $9,700 to Gauthier Company and accepted Gauthier's two-month, 6% note in payment. Interest is due at maturity. Sold $12,000 of merchandise to Mathias Corp., terms n/30. The cost of the merchandise sold was $7,100. Sold, on account (n/30), $4,200 of merchandise that cost $2,700 to Superior Limited. Accepted a two-month, 7%, $12,000 note from Mathias in settlement of its account. (See February 26 transaction.) Interest is due at maturity. Collected the Gauthier note in full. (See February 3 transaction.) The Mathias note of March 27 was dishonoured. It is expected that Mathias will eventually pay the amount owed. Recorded accrued interest for three months on outstanding interest on the receivables overdue from Morgan and Superior. Interest on unpaid receivables is charged at 24% per annum ( 2% per month). (See February 1 and March 6 transactions.) Record the above transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when 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. Round answers to the nearest whole dollar, e.g. 5,275.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Date Account Titles and Explanation (To record sales) (To record cost of merchandise sold) (To record sales) (To record cost of merchandise sold) (To record sales) (To record cost of merchandise sold) (To record cost of merchandise sold) (To record sales) (To record cost of merchandise sold) (To record note dishonoured) (To record interest accrued on outstanding accounts receivable amount) Debit Credit
Transcribed Image Text:Date Account Titles and Explanation (To record sales) (To record cost of merchandise sold) (To record sales) (To record cost of merchandise sold) (To record sales) (To record cost of merchandise sold) (To record cost of merchandise sold) (To record sales) (To record cost of merchandise sold) (To record note dishonoured) (To record interest accrued on outstanding accounts receivable amount) Debit Credit
The following selected transactions occurred for Benton Corporation. The company uses a perpetual inventory system, has a May 31 year end, and adjusts its accounts annually. Feb. 1 3 26 Mar. 6 27 Apr. 3 May 27 31 Sold merchandise for $8,500 on account (n/30) to Morgan Ltd. The cost of goods sold was $6,375. Sold $13,200 of merchandise costing $9,700 to Gauthier Company and accepted Gauthier's two-month, 6% note in payment. Interest is due at maturity. Sold $12,000 of merchandise to Mathias Corp., terms n/30. The cost of the merchandise sold was $7,100. Sold, on account (n/30), $4,200 of merchandise that cost $2,700 to Superior Limited. Accepted a two-month, 7%, $12,000 note from Mathias in settlement of its account. (See February 26 transaction.) Interest is due at maturity. Collected the Gauthier note in full. (See February 3 transaction.) The Mathias note of March 27 was dishonoured. It is expected that Mathias will eventually pay the amount owed. Recorded accrued interest for three months on outstanding interest on the receivables overdue from Morgan and Superior. Interest on unpaid receivables is charged at 24% per annum (2% per month). (See February 1 and March 6 transactions.) Record the above transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when 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. Round answers to the nearest whole dollar, e.g. 5,275.)
Transcribed Image Text:The following selected transactions occurred for Benton Corporation. The company uses a perpetual inventory system, has a May 31 year end, and adjusts its accounts annually. Feb. 1 3 26 Mar. 6 27 Apr. 3 May 27 31 Sold merchandise for $8,500 on account (n/30) to Morgan Ltd. The cost of goods sold was $6,375. Sold $13,200 of merchandise costing $9,700 to Gauthier Company and accepted Gauthier's two-month, 6% note in payment. Interest is due at maturity. Sold $12,000 of merchandise to Mathias Corp., terms n/30. The cost of the merchandise sold was $7,100. Sold, on account (n/30), $4,200 of merchandise that cost $2,700 to Superior Limited. Accepted a two-month, 7%, $12,000 note from Mathias in settlement of its account. (See February 26 transaction.) Interest is due at maturity. Collected the Gauthier note in full. (See February 3 transaction.) The Mathias note of March 27 was dishonoured. It is expected that Mathias will eventually pay the amount owed. Recorded accrued interest for three months on outstanding interest on the receivables overdue from Morgan and Superior. Interest on unpaid receivables is charged at 24% per annum (2% per month). (See February 1 and March 6 transactions.) Record the above transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when 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. Round answers to the nearest whole dollar, e.g. 5,275.)
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