Exercise A

For each account, identify the account type, normal balance, how to increase and decrease the account using Debit or Credit and how is the account used $($by buyer, seller, or both$).$

$\backslash$table$[[$Account Title,Account Type,$\backslash$table$[[$Normal$],[$Balance$],[($debit or$],[$credit$)]],\backslash$table$[[$Increased by$],[($debit or$],[$credit$)]],\backslash$table$[[$Decreased by$],[($debit or$],[$credit$)]],\backslash$table$[[$Used in$($buyer$],[$and$/$or seller$)],[$entries$]]],[$Accounts Payable$],[$Merchandise Inventory$],[$Cash$],[$Sales Discounts$],[$Sales Returns and Allowances$],[$Accounts Receivable$],[$Sales$],[$Delivery Expense$],[$Cost of Goods Sold,,,,,$]]$

Problem B: Prepare journal entries for each independent company.

a$.$ Spencer Sporting Goods

Spencer Sporting Goods Company engaged in the following transactions in April:

Apr. $1$ Sold merchandise on account for $$288,000$; terms $\frac{2}{10},\frac{n}{30},$ FOB shipping point, purchased for $$200,000.$

Apr $5$$$43,200$ of the goods sold on account on April $1$ were returned for a full credit. Payment for these goods had not yet been received. The original cost of the goods was $$30,000.$

Apr $8$ A sales allowance of $$5,760$ was granted on the merchandise sold on April $1$ because the merchandise was damaged in shipment. $-$ Apr $10$ Payment was received for the net amount due from the sale of April $1.$