At the beginning of the current season on April 1, the ledger of Sunland Pro Shop showed Cash $3,100; Inventory $3.500; and Common Stock S6,600. The following transactions were completed during April 2022. Apr. 5 Purchased golf bags, clubs, and balls on account from Arnie Co. S2.600, terms 3/10, n/60. 7 Paid freight on Arnie purchase S80. 9 Received credit from Arnie Co. for merchandise returned $700. 10 Sold merchandise on account to members $1,470, terms n/30. The merchandise sold had a cost of $840. 12 Purchased golf shoes, sweaters, and other accessories on account from Woods Sportswear $950, terms 2/10, n/30. 14 Paid Arnie Co. in full. 17 Received credit from Woods Sportswear for merchandise returned $50. 20 Made sales on account to members $820, terms /30. The cost of the merchandise sold was $550. Paid Woods Sportswear in full. 21 27 Granted an allowance to members for clothing that did not fit properly $70. 30 Received payments on account from members $1,180.

At the beginning of the current season on April 1, the ledger of Sunland Pro Shop showed Cash $3,100; Inventory $3.500; and Common Stock S6,600. The following transactions were completed during April 2022. Apr. 5 Purchased golf bags, clubs, and balls on account from Arnie Co. S2.600, terms 3/10, n/60. 7 Paid freight on Arnie purchase S80. 9 Received credit from Arnie Co. for merchandise returned $700. 10 Sold merchandise on account to members $1,470, terms n/30. The merchandise sold had a cost of $840. 12 Purchased golf shoes, sweaters, and other accessories on account from Woods Sportswear $950, terms 2/10, n/30. 14 Paid Arnie Co. in full. 17 Received credit from Woods Sportswear for merchandise returned $50. 20 Made sales on account to members $820, terms /30. The cost of the merchandise sold was $550. Paid Woods Sportswear in full. 21 27 Granted an allowance to members for clothing that did not fit properly $70. 30 Received payments on account from members $1,180.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 13MC: Which of the following accounts are used when recording the sales entry of a sale on credit? A....

See similar textbooks

Similar questions

What accounts are used to recognize a retailers purchase from a manufacturer on credit? A. accounts receivable, merchandise inventory B. accounts payable, merchandise inventory C. accounts payable, cash D. sales, accounts receivable
If a customer pays with a credit card and the service has been provided, which of the following accounts will be used to record the sales entry for this transaction? A. Cost of Goods Sold, Merchandise Inventory, Sales Revenue B. Sales Revenue, Credit Card Expense, Accounts Receivable C. Accounts Receivable, Merchandise Inventory, Credit Card Expense D. Cost of Goods Sold, Credit Card Expense, Sales Revenue
For each of the following accounts, identify whether the normal balance is a debit or a credit. Also specify whether the account is a contra account. a. Sales Returns and Allowances b. Merchandise Inventory c. Sales d. d Freight In e. Purchases Returns and Allowances f. Sales Tax Payable g. Purchases
Which of the following is an example of a contra revenue account? A. sales B. merchandise inventory C. sales discounts D. accounts payable
The journal that should be used to record the return of merchandise for credit is the (a) purchases journal. (b) cash payments journal. (c) general journal. (d) accounts payable journal.
Using the following information, prepare the Cost of Goods Sold section of an income statement.
Purchase-related transactions Based on the data presented in Exercise 5-16, journalize Balboa Co.s entries for (A) the purchase, (B) the return of the merchandise for credit, and (C) the payment of the invoice.
Identify each of the following items relating to sections of an income statement as Revenue from Sales (S), Cost of Goods Sold (CGS), Selling Expenses (SE), General Expenses (GE), Other Income (OI), or Other Expenses (OE). a. Utilities Expense b. Advertising Expense c. Purchases Discounts d. Sales Returns and Allowances e. Interest Income f. Freight In g. Depreciation Expense, Equipment h. Interest Expense i. Rent Expense j. Sales
Which of the following accounts are used when recording a purchase? A. cash, merchandise inventory B. accounts payable, merchandise inventory C. A or B D. cash, accounts payable
Which of the following accounts are used when recording a purchase using a periodic inventory system? A. cash, purchases B. accounts payable, sales C. accounts payable, accounts receivable D. cash, merchandise inventory
Identify items missing in determining cost of goods sold For (a) through (e), identify the items designated by X and Y. A. Purchases (X + Y) = Net purchases B. Net purchases + X = Cost of inventory purchased C. Inventory (beginning) + Cost of inventory purchased = X D. Inventory available for sale X = Cost of inventory before estimated returns E. Cost of goods sold before estimated returns X = Cost of goods sold
On which financial statement would the merchandise inventory account appear? A. balance sheet B. income statement C. both balance sheet and income statement D. neither balance sheet nor income statement