Question
In: Accounting
The following transactions were selected from among those completed by Hailey Retailers in 2013
The following transactions were selected from among those completed by Hailey Retailers in 2013: Nov. 20 Sold two items of merchandise to Customer B, who charged the $480 sales price on her Visa credit card. Visa charges Hailey a 2 percent credit card fee.
25 Sold 14 items of merchandise to Customer C at an invoice price of $3,400 (total); terms 3/10, n/30.
28 Sold 12 identical items of merchandise to Customer D at an invoice price of $8,160 (total); terms 3/10, n/30.
30 Customer D returned one of the items purchased on the 28th; the item was defective, and credit was given to the customer.
Dec. 06 Customer D paid the account balance in full.
30 Customer C paid in full for the invoice of November 25, 2013.
Required:
1-a. Prepare the appropriate jounal entry for each of these transactions, assuming the company records sales revenue under the gross method. Do not record cost of goods sold. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1 Sold two items of merchandise to Customer B, who
charged the $480 sales price on her Visa credit card. Visa charges Hailey a 2 percent credit card fee.
2 Sold 14 items of merchandise to Customer C at an invoice price of $3400 (total); terms 3/10, n/30.
3 Sold 12 identical items of merchandise to Customer D at an invoice price of $8160 (total); terms 3/10, n/30.
4 Customer D returned one of the items purchased on the 28th; the item was defective, and credit was given to the customer.
5 Customer D paid the account balance in full.
6 Customer C paid in full for the invoice of November 25, 2013.
1-b. Compute Net Sales.
Solutions
Expert Solution
| Journal entries: | ||||||
| Date | Accounts title and explanations | Debit $ | Credit$ | |||
| 20-Nov | Cash account Dr. | 470.4 | ||||
| Card service expenses Dr. (480*2%) | 9.6 | |||||
| Sales revenue | 480 | |||||
| 25-Nov | Accounts receivable Dr. | 3400 | ||||
| Sales revenue | 3400 | |||||
| 28-Nov | Accounts receivable Dr. | 8160 | ||||
| Sales revenue | 8160 | |||||
| 30-Nov | Sales return and allowance Dr. | 680 | ||||
| Accounts receivable | 680 | |||||
| 6-Dec | Cash account Dr. | 7255.6 | ||||
| Sales discount Dr. (7480*3%) | 224.4 | |||||
| Accounts receivable | 7480 | |||||
| 30-Dec | Cash account Dr. | 3400 | ||||
| Accounts receivable | 3400 | |||||
| Net sales revenue: | ||||||
| Gross Sales revenue (480+3400+8160) | 12040 | |||||
| Less: Sales return and allowance | 680 | |||||
| Less: Sales discount | 224.4 | |||||
| Net sales revenue: | 11135.6 | |||||
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completed during the current year by Danix Co., an appliance
wholesale company:
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