Answered: Begin by preparing the entry to…

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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Feb 10: Sold merchandise inventory on account for $4,300. Payment terms were 3/15, n/30. These goods cost the company

$2,150.

Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following step.

The answer isn't 4300 debit and credit for Feb. 10 as I attempted.

- X
More Info
dit
Purchased $2,600 of merchandise inventory on account under terms
Feb. 3 2/10, n/EOM and FOB shipping point.
500
Feb. 7 Returned $500 of defective merchandise purchased on February 3.
Feb. 9 Paid freight bill of $450 on February 3 purchase.
Sold merchandise inventory on account for $4,300. Payment terms were
Feb. 10 3/15, n/30. These goods cost the company $2,150.
Paid amount owed on credit purchase of February 3, less the return and
dit
Feb. 12 the discount.
Feb. 28 Received cash from February 10 customer in full settlement of their debt.
450
Print
Done
Feb. 10: Sold merchandise inventory on account for $4,300. Payment terms were 3/15, n/30. These goods cost the company $2,150.
Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following
step.
Date
Accounts
Debit
Credit
Feb. 10
Accounts Receivable
4300
Sales Revenue
4300

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