On October 5, Swifty Corporation buys merchandise for resale on account from Blue Spruce Corporation. The...
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On October 5, Swifty Corporation buys merchandise for resale on account from Blue Spruce Corporation. The selling price of the goods is $5,100, and the cost to Blue Spruce Company is $3,270. Blue Spruce Company expects a return rate of 15%. On October 8, Swifty returns defective goods with a selling price of $690 and a cost of $240. Blue Spruce anticipates that these goods can be resold at a discount at some point in the future for at least their cost of $240, if not more. Both companies use a periodic inventory system. (a) Your answer is correct. Record the transactions on the books of Swifty Corporation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Oct. 5 Purchases Accounts Payable Oct. 8 Accounts Payable Purchase Returns and Allowances Debit 5100 690 Credit 510 69 (b) Your answer is partially correct. Record the transactions on the books of Blue Spruce Corporation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation t.5 Accounts Receivable Sales Cost of Goods Sold Debit 5100 t.8 Sales Returns and Allowances 690 Accounts Receivable eTextbook and Media List of Accounts Save for Later Credit 5100 3270 690 Attempts: 1 of 2 used Submit Answer List of Accounts Accounts Payable Accounts Receivable Accumulated Depreciation - Buildings Accumulated Depreciation - Equipment Accumulated Depreciation - Vehicles Administrative Expenses Advertising Expense Bank Loan Payable Buildings Cash Common Shares Cost of Goods Sold Current Portion of Bank Loan Payable Current Portion of Mortgage Payable Deferred Revenue Assistance Used Depreciation Expense Dividends Declared Estimated Inventory Returns Equipment Freight In Freight Out Income Summary Income Tax Expense Income Tax Payable Insurance Expense Interest Expense Interest Payable Interest Revenue Inventory Land Mortgage Payable No Entry Office Expense Prepaid Insurance Prepaid Rent Property Tax Expense Property Tax Payable Purchase Discounts Purchase Returns and Allowances Purchases Refund Liability Rent Expense Rent Revenue Retained Earnings Salaries Expense Salaries Payable Sales Sales Discounts Sales Returns and Allowances Selling Expenses Supplies Supplies Expense Travel Expense Unearned Revenue Utilities Expense Vehicles On October 5, Swifty Corporation buys merchandise for resale on account from Blue Spruce Corporation. The selling price of the goods is $5,100, and the cost to Blue Spruce Company is $3,270. Blue Spruce Company expects a return rate of 15%. On October 8, Swifty returns defective goods with a selling price of $690 and a cost of $240. Blue Spruce anticipates that these goods can be resold at a discount at some point in the future for at least their cost of $240, if not more. Both companies use a periodic inventory system. (a) Your answer is correct. Record the transactions on the books of Swifty Corporation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Oct. 5 Purchases Accounts Payable Oct. 8 Accounts Payable Purchase Returns and Allowances Debit 5100 690 Credit 510 69 (b) Your answer is partially correct. Record the transactions on the books of Blue Spruce Corporation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation t.5 Accounts Receivable Sales Cost of Goods Sold Debit 5100 t.8 Sales Returns and Allowances 690 Accounts Receivable eTextbook and Media List of Accounts Save for Later Credit 5100 3270 690 Attempts: 1 of 2 used Submit Answer List of Accounts Accounts Payable Accounts Receivable Accumulated Depreciation - Buildings Accumulated Depreciation - Equipment Accumulated Depreciation - Vehicles Administrative Expenses Advertising Expense Bank Loan Payable Buildings Cash Common Shares Cost of Goods Sold Current Portion of Bank Loan Payable Current Portion of Mortgage Payable Deferred Revenue Assistance Used Depreciation Expense Dividends Declared Estimated Inventory Returns Equipment Freight In Freight Out Income Summary Income Tax Expense Income Tax Payable Insurance Expense Interest Expense Interest Payable Interest Revenue Inventory Land Mortgage Payable No Entry Office Expense Prepaid Insurance Prepaid Rent Property Tax Expense Property Tax Payable Purchase Discounts Purchase Returns and Allowances Purchases Refund Liability Rent Expense Rent Revenue Retained Earnings Salaries Expense Salaries Payable Sales Sales Discounts Sales Returns and Allowances Selling Expenses Supplies Supplies Expense Travel Expense Unearned Revenue Utilities Expense Vehicles
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Financial Accounting Tools for business decision making
ISBN: 978-0470534779
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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