Prepare journal entries for the following transactions. Oct. 5 Sold merchandise on account to B. Farnsby for $290 plus sales tax of 4%. 8 Sold merchandise on account to F. Preetee for $180 plus sales tax of 4%, with 2/10, n/30 cash discount terms. 11 F. Preetee returned merchandise purchased on October 8 for $40 plus sales tax for credit. 17 F. Preetee paid the balance due on her account. 18 B. Farnsby returned merchandise purchased on October 5 for $80 plus sales tax for credit. 20 B. Farnsby paid the balance due on his account. Required: Prepare journal entries.
Prepare journal entries for the following transactions. Oct. 5 Sold merchandise on account to B. Farnsby for $290 plus sales tax of 4%. 8 Sold merchandise on account to F. Preetee for $180 plus sales tax of 4%, with 2/10, n/30 cash discount terms. 11 F. Preetee returned merchandise purchased on October 8 for $40 plus sales tax for credit. 17 F. Preetee paid the balance due on her account. 18 B. Farnsby returned merchandise purchased on October 5 for $80 plus sales tax for credit. 20 B. Farnsby paid the balance due on his account. Required: Prepare journal entries.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Prepare journal entries for the following transactions.
| Oct. 5 | Sold merchandise on account to B. Farnsby for $290 plus sales tax of 4%. |
| 8 | Sold merchandise on account to F. Preetee for $180 plus sales tax of 4%, with 2/10, n/30 cash discount terms. |
| 11 | F. Preetee returned merchandise purchased on October 8 for $40 plus sales tax for credit. |
| 17 | F. Preetee paid the balance due on her account. |
| 18 | B. Farnsby returned merchandise purchased on October 5 for $80 plus sales tax for credit. |
| 20 | B. Farnsby paid the balance due on his account. |
Required:
| Prepare journal entries. |
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