Question

The following transactions were selected from among those completed by Gunzo Wholesalers in 2014: Nov. 20 Sold two items of merchandise to Brigitte, who charged the $ 800 sales amount on her Visa credit card. Visa charges Gunzo a 2 percent credit card fee. 25 Sold 20 items of merchandise to Clara for $ 5,000; terms 2/ 10, n/ 30. 28 Sold 10 identical items of merchandise to David for $ 6,000; terms 2/ 10, n/ 30. 30 David returned one of the items purchased on the 28th; the item was defective, and credit was given to the customer. Dec. 6 David paid the account balance in full. 30 Clara paid in full the amount due for the purchase on November 25, 2014.
Required:
1. Assuming that sales discounts and credit card discounts are treated as contra revenues, compute net sales for the two months ended December 31, 2014.
2. Prepare the journal entries to record the transactions that occurred on November 20, November 25, and December 30.


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  • CreatedAugust 04, 2015
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