Question
In: Accounting
Problem (1) Prepare journal entries to record each of the following purchases transactions of a merchandising...
Problem (1)
Prepare journal entries to record each of the following purchases transactions of a merchandising company. Show supporting calculations and assume a perpetual and periodic inventory system.
Mar. 5 Purchased 500 units of product at a cost of $5 per unit. Terms of the sale are 2/10, n/60 the invoice is dated March 5.
Mar.7 Returned 50 defective units from the March 5 purchase and received full credit.
Mar 15 paid the amount due from the March 5 purchase less the return on March 7.
Problem (2)
Prepare journal entries to record each of the following sales transactions of a merchandising company.
Show supporting calculations and assume a perpetual inventory system.
April. 1 sold merchandise for $2000, granting the customer terms of 2/10, invoice dated April.1.The cost of the merchandise is $1400.
April.4 The customer in the April .1 sale returned merchandise and received credit for $500.The merchandise, which had cost $350 is returned to inventory.
April.11 Received payment for the amount due from the April.1 sale less the return on April.7.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Prepare journal entries to record each of the following sales transactions of a merchandising company. The...
Prepare journal entries to record each of the following sales
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