Name at least three accounts that would normally appear in the financial statements of a merchandising business, but would not appear in the chart of accounts of a service business.
Answer to relevant QuestionsHow does the accounting for sales to customers using bank credit cards, such as MasterCard and VISA, differ from accounting for sales to customers using nonbank credit cards, such as American Express? Explain.Bernard Office Equipment, which uses a perpetual inventory system, experienced a normal inventory shrinkage of $19,290. (a) What accounts would be debited and credited to record the adjustment for the inventory shrinkage at ...The following data were extracted from the accounting records of Meniscus Company for the year ended April 30, 2006:Merchandise inventory, May 1, 2005 ....... $ 121,200Merchandise inventory, April 30, 2006 ...... ...After the amount due on a sale of $7,500, terms 2/10, n/eom, is received from a customer within the discount period, the seller consents to the return of the entire shipment. The cost of the merchandise returned was $4,500. ...A sale of merchandise on account for $4,000 is subject to a 7% sales tax. (a) Should the sales tax be recorded at the time of sale or when payment is received? (b) What is the amount of the sale?(c) What is the amount ...
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