Golf World sold merchandise to Mulligans for $10,000, offering terms of 1/15, n/30. Mulliganspaid for the merchandise within the discount period. Both companies use perpetual inventorysystems.a. Prepare journal entries in the accounting records of Golf World to account for this sale and thesubsequent collection. Assume the original cost of the merchandise to Golf World had been$6,500.b. Prepare journal entries in the accounting records of Mulligans to account for the purchase andsubsequent payment. Mulligans records purchases of merchandise at net cost.c. Assume that, because of a change in personnel, Mulligans failed to pay for this merchandisewithin the discount period. Prepare the journal entry in the accounting records of Mulligans torecord payment after the discount period.
Golf World sold merchandise to Mulligans for $10,000, offering terms of 1/15, n/30. Mulligans
paid for the merchandise within the discount period. Both companies use perpetual inventory
systems.
a. Prepare journal entries in the accounting records of Golf World to account for this sale and the
subsequent collection. Assume the original cost of the merchandise to Golf World had been
$6,500.
b. Prepare journal entries in the accounting records of Mulligans to account for the purchase and
subsequent payment. Mulligans records purchases of merchandise at net cost.
c. Assume that, because of a change in personnel, Mulligans failed to pay for this merchandise
within the discount period. Prepare the
record payment after the discount period.
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