The transactions listed below are typical of those involving Southern Sporting Goods (SSG) and Sports R Us (SRU). SSG is a wholesale merchandiser and SRU is a retail merchandiser. Assume all sales of merchandise from SSG to SRU are made with terms n/30, and the two companies use perpetual inventory systems. Assume the following transactions between the two companies occurred in the order listed during the year ended December 31. a. SSG sold merchandise to SRU at a selling price of $140,000. The merchandise had cost SSG $100,000. b. Two days later, SRU complained to SSG that some of the merchandise differed from what SRU had ordered. SSG agreed to give an allowance of $4,500 to SRU. SRU also returned some sporting goods, which had cost SSG $13,500 and had been sold to SRU for $18,000. No further returns are expected c. Just three days later SRU paid SSG, which settled all amounts owed.
The transactions listed below are typical of those involving Southern Sporting Goods (SSG) and Sports R Us (SRU). SSG is a wholesale merchandiser and SRU is a retail merchandiser. Assume all sales of merchandise from SSG to SRU are made with terms n/30, and the two companies use perpetual inventory systems. Assume the following transactions between the two companies occurred in the order listed during the year ended December 31. a. SSG sold merchandise to SRU at a selling price of $140,000. The merchandise had cost SSG $100,000. b. Two days later, SRU complained to SSG that some of the merchandise differed from what SRU had ordered. SSG agreed to give an allowance of $4,500 to SRU. SRU also returned some sporting goods, which had cost SSG $13,500 and had been sold to SRU for $18,000. No further returns are expected c. Just three days later SRU paid SSG, which settled all amounts owed.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Journal entry worksheet
<
1 2
Record the payment in full.
Note: Enter debits before credits.
Transaction
C.
3
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
![Required information
[The following information applies to the questions displayed below.]
The transactions listed below are typical of those involving Southern Sporting Goods (SSG) and Sports R Us
(SRU). SSG is a wholesale merchandiser and SRU is a retail merchandiser. Assume all sales of merchandise from
SSG to SRU are made with terms n/30, and the two companies use perpetual inventory systems. Assume the
following transactions between the two companies occurred in the order listed during the year ended December
31.
a. SSG sold merchandise to SRU at a selling price of $140,000. The merchandise had cost SSG $100,000.
b. Two days later, SRU complained to SSG that some of the merchandise differed from what SRU had ordered.
SSG agreed to give an allowance of $4,500 to SRU. SRU also returned some sporting goods, which had cost
SSG $13,500 and had been sold to SRU for $18,000. No further returns are expected
c. Just three days later SRU paid SSG, which settled all amounts owed.
. Prepare the journal entries that SRU would record. (If no entry is required for a transaction/event, select "No Journal Entry
Required" in the first account field.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0a5ac3c6-e4ab-423a-91e1-ff33bdae0d07%2F121864e8-ba2b-4e9f-a841-7a0a3b29578a%2Fqe4opkq_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
The transactions listed below are typical of those involving Southern Sporting Goods (SSG) and Sports R Us
(SRU). SSG is a wholesale merchandiser and SRU is a retail merchandiser. Assume all sales of merchandise from
SSG to SRU are made with terms n/30, and the two companies use perpetual inventory systems. Assume the
following transactions between the two companies occurred in the order listed during the year ended December
31.
a. SSG sold merchandise to SRU at a selling price of $140,000. The merchandise had cost SSG $100,000.
b. Two days later, SRU complained to SSG that some of the merchandise differed from what SRU had ordered.
SSG agreed to give an allowance of $4,500 to SRU. SRU also returned some sporting goods, which had cost
SSG $13,500 and had been sold to SRU for $18,000. No further returns are expected
c. Just three days later SRU paid SSG, which settled all amounts owed.
. Prepare the journal entries that SRU would record. (If no entry is required for a transaction/event, select "No Journal Entry
Required" in the first account field.)
Expert Solution
Step 1
Journal Entry:
A business transaction is documented in the accounting records of the company using a journal entry. Journal entries are often made in the main ledger, but they may also be produced in a subsidiary ledger and subsequently rolled forward into the general ledger after being summarized. After then, the general ledger is used to compile the company's financial statements.
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