April 4, 2020 Smith and West, who uses the Perpetual inventory system, purchased 1000 widgets from ABC company on account, at a cost of $5 each. HST is applied and they charged the goods, PI-26. Terms: 5/10 n/30. On April 10, Smith and West sold 200 widgets to Mr. T on account at a price of $14 each. HST was collected. Terms: 5/10 n/30. What would be the 1st journal entry to record this transaction? (Hint: There are 2 journal entries) 1.Debit - Sales $2,800, HST Payable $364 </> Credit - A/P - Mr. T $3,164 2.Debit - Cash $3,164 </> Credit - Sales $2,800, HST Payable $364 3.Debit - A/R - Mr. T $3,164 </> Credit - Sales $2,800, HST Payable $364 4.Debit - Sales $2,800, HST Payable $364 </> Credit - A/R - Mr. T $3,164
April 4, 2020 Smith and West, who uses the Perpetual inventory system, purchased 1000 widgets from ABC company on account, at a cost of $5 each. HST is applied and they charged the goods, PI-26. Terms: 5/10 n/30. On April 10, Smith and West sold 200 widgets to Mr. T on account at a price of $14 each. HST was collected. Terms: 5/10 n/30. What would be the 1st journal entry to record this transaction? (Hint: There are 2 journal entries) 1.Debit - Sales $2,800, HST Payable $364 </> Credit - A/P - Mr. T $3,164 2.Debit - Cash $3,164 </> Credit - Sales $2,800, HST Payable $364 3.Debit - A/R - Mr. T $3,164 </> Credit - Sales $2,800, HST Payable $364 4.Debit - Sales $2,800, HST Payable $364 </> Credit - A/R - Mr. T $3,164
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 9RE: RE7-8 Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased 100,000 of...
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24) April 4, 2020 Smith and West, who uses the Perpetual inventory system, purchased 1000 widgets from ABC company on account, at a cost of $5 each. HST is applied and they charged the goods, PI-26. Terms: 5/10 n/30. On April 10, Smith and West sold 200 widgets to Mr. T on account at a price of $14 each. HST was collected. Terms: 5/10 n/30. What would be the 1st
1.Debit - Sales $2,800, HST Payable $364 </> Credit - A/P - Mr. T $3,164
2.Debit - Cash $3,164 </> Credit - Sales $2,800, HST Payable $364
3.Debit - A/R - Mr. T $3,164 </> Credit - Sales $2,800, HST Payable $364
4.Debit - Sales $2,800, HST Payable $364 </> Credit - A/R - Mr. T $3,164
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