On December 1, 2016, Smith Company sells Jones Company product for $1,000 that cost Smith $450 on
Question:
On December 1, 2016, Smith Company sells Jones Company product for $1,000 that cost Smith $450 on account with terms of 2/10 N30. Journalize the transaction.
On December 4, 2016, Jones returns damaged product purchased on December 1. Journalize the transaction.
On December 4, 2016, Jones returns damaged product purchased on December 1. On December 14, 2016, Jones notifies Smith that due to cash flow problems, it will be unable to pay off the December 1 purchase until January 25, 2017 and asks Smith to create a Notes Payable.
On December 15, 2016, Smith provides Jones with a Note Payable with the following terms: Note due in 90 days with an APR of 12%.
On March 12, 2017, Jones Company pays the Note off.
Journalize these transactions from JONES Company books.
Expert Answer:
Accounting What the Numbers Mean
ISBN: 978-1259535314
11th edition
Authors: David Marshall, Wayne McManus, Daniel Viele
