10. Prepare journal entries to record each of the following transactions. Assume a perpetual inventory system...
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10. Prepare journal entries to record each of the following transactions. Assume a perpetual inventory system and use of the gross method. Beginning inventory equals $9,000. June 1 - Sold 50 units of merchandise to a customer for $150 per unit under terms of 2/10, n/30, FOB shipping point, and the invoice is dated June 1. The 50 units of merchandise had cost $100 per unit. June 7- The customer returns 2 units purchased on June 1 because those units did not fit its needs. The seller returns those units to its inventory (as they are not defective) and credits Accounts Receivable from the customer. June 11 - The seller receives the balance due from the June 1 sale to the customer less returns and allowances. June 14 - The customer discovers that 10 units have minor damage but keeps because the seller sends a $50 cash payment allowance to compensate. DATE ACCOUNT DEBIT CREDIT 10. Prepare journal entries to record each of the following transactions. Assume a perpetual inventory system and use of the gross method. Beginning inventory equals $9,000. June 1 - Sold 50 units of merchandise to a customer for $150 per unit under terms of 2/10, n/30, FOB shipping point, and the invoice is dated June 1. The 50 units of merchandise had cost $100 per unit. June 7- The customer returns 2 units purchased on June 1 because those units did not fit its needs. The seller returns those units to its inventory (as they are not defective) and credits Accounts Receivable from the customer. June 11 - The seller receives the balance due from the June 1 sale to the customer less returns and allowances. June 14 - The customer discovers that 10 units have minor damage but keeps because the seller sends a $50 cash payment allowance to compensate. DATE ACCOUNT DEBIT CREDIT
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June 1 Debit Accounts Receivable 7500 Credit Sales 7500 Credit Cost of Goods Sol... View the full answer
Related Book For
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
Posted Date:
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