Presented below are transactions related to Li Company, Ltd. 1. On December 3, Li sold HK$580,000 of
Question:
1. On December 3, Li sold HK$580,000 of merchandise to South China Co., Ltd. Terms 1/10, n/30, FOB shipping point. The cost of the merchandise sold was HK$364,800.
2. On December 8, South China was granted an allowance of HK$28,000 for merchandise purchased on December 3.
3. On December 13, Li received the balance due from South China.
Instructions
(a) Prepare the journal entries to record these transactions on the books of Li Company, Ltd. using a perpetual inventory system.
(b) Assume that Li Company, Ltd. received the balance due from South China Co., Ltd. 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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a 1 Dec 3 Accounts Receivable 580000 Sales Revenue 580000 Cost of Goods Sold 364...View the full answer
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Saud Ur Rehman
Evaluating manufacturing processes by designing and conducting research programs; applying knowledge of product design, fabrication, assembly, tooling, and materials; conferring with equipment vendors; soliciting observations from operators. Developing manufacturing processes by studying product requirements; researching, designing, modifying, and testing manufacturing methods and equipment; conferring with equipment vendors. Keeping equipment operational by coordinating maintenance and repair services; following manufacturer's instructions and established procedures; requesting special service.
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Related Book For 
Financial Accounting
ISBN: 978-1118978085
IFRS 3rd edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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