Question

Presented below are transactions related to Bogner Company.
1. On December 3, Bogner Company sold $570,000 of merchandise to Maris Co., terms 2/10, n/30, FOB shipping point. The cost of the merchandise sold was $350,000.
2. On December 8, Maris Co. was granted an allowance of $20,000 for merchandise purchased on December 3.
3. On December 13, Bogner Company received the balance due from Maris Co.

Instructions
(a) Prepare the journal entries to record these transactions on the books of Bogner Company using a perpetual inventory system.
(b) Assume that Bogner Company received the balance due from Maris Co. on January 2 of the following year instead of December 13. Prepare the journal entry to record the receipt of payment on January 2.



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  • CreatedJanuary 30, 2014
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