You are accountant for New Horizon Merchandising Company. New Horizon Merchandising Company buys and sells a product called Zoom. Company uses Perpetual Inventory System with LIFO method for inventory valuation. New Horizon uses Net Method for accounting for its purchases and sales. On January 1, 2019, New Horizon’s merchandise inventory on hand consisted of the following: Zoom: Quantity Cost per Unit 1st Purchase 200 $4 2nd Purchase 110 $5 49. New Horizon sold 500 units of Zoom for $15 each plus 8% sales taxes on account to Nice Company.Terms were 2/10, n/30, FOB Destination.New Horizon paid $100 for shipping the merchandise to Nice Company. Provide the necessary journal entry to record the transaction. Debit Credit 48. Assume New Horizon collected from Nice Company for the above sales within discount period. Provide the necessary journal entry to record the transaction. Debit Credit 50. Assume New Horizon collected from Nice Company for the above sales after the discount period. Provide the necessary journal entry to record the transaction. Debit Credit
: You are accountant for New Horizon Merchandising Company. New Horizon Merchandising Company buys and sells a product called Zoom. Company uses Perpetual Inventory System with LIFO method for
On January 1, 2019, New Horizon’s merchandise inventory on hand consisted of the following:
|
Zoom: |
Quantity |
Cost per Unit |
|
1st Purchase |
200 |
$4 |
|
2nd Purchase |
110 |
$5 |
49. New Horizon sold 500 units of Zoom for $15 each plus 8% sales taxes on account to Nice Company.Terms were 2/10, n/30, FOB Destination.New Horizon paid $100 for shipping the merchandise to Nice Company. Provide the necessary
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Debit |
Credit |
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48. Assume New Horizon collected from Nice Company for the above sales within discount period. Provide the necessary journal entry to record the transaction.
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Debit |
Credit |
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50. Assume New Horizon collected from Nice Company for the above sales after the discount period. Provide the necessary journal entry to record the transaction.
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Debit |
Credit |
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