The following transactions are for Solarte Company. 1. On December 3, Solarte Company sold $500,000 of merchandise
Question:
The following transactions are for Solarte Company.
1. On December 3, Solarte Company sold $500,000 of merchandise to Rooney Co., terms 1/10, n/30. The cost of the merchandise sold was $330,000.
2. On December 8, Rooney Co. was granted an allowance of $25,000 for merchandise purchased on December 3.
3. On December 13, Solarte Company received the balance due from Rooney Co.
Instructions
(a) Prepare the journal entries to record these transactions on the books of Solarte Company. Solarte uses a perpetual inventory system.
(b) Assume that Solarte Company received the balance due from Rooney 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.
Step by Step Answer:
a 1 Dec 3 Accounts Receivable 500000 Sales Revenue 500000 Cost of Goods Sold 330000 Inventory 3300...View the full answer
Accounting Tools for Business Decision Making
ISBN: 978-1118128169
5th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
