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GW sold merchandise to Mulligans for $10,000, offering term of 1/15, n/30. mulligans paid for the merchandise within the discount period. both companies use perpetual inventory system.I needa. Prepare the journal entries in the accounting records of GW to accounts for this sale and the subsequent collection. Assume  the original cost of merchandise to GW had been $6,500b. Prepare jurnal entire in the accounting records of mulligans accounts for the purchase and subsequent paymen.t Mulligans records purchase merchandise at net cost.c. Assume that, because of a change in personnel, Mulligans failed to pay for this mechandise within the discount period. prepare journal entry in the accounting records of Mulligans to record payment after the discount period.

Question

GW sold merchandise to Mulligans for $10,000, offering term of 1/15, n/30. mulligans paid for the merchandise within the discount period. both companies use perpetual inventory system.

I need

a. Prepare the journal entries in the accounting records of GW to accounts for this sale and the subsequent collection. Assume  the original cost of merchandise to GW had been $6,500

b. Prepare jurnal entire in the accounting records of mulligans accounts for the purchase and subsequent paymen.t Mulligans records purchase merchandise at net cost.

c. Assume that, because of a change in personnel, Mulligans failed to pay for this mechandise within the discount period. prepare journal entry in the accounting records of Mulligans to record payment after the discount period.

check_circleAnswer
Step 1

a) Prepare the journal entries in the accounting records of GW to account this sales and the subsequent collection.

 

Credit
Post
Debit (S)
Account titles and Explanation
Date
ref
(S)
$10,000
1
Accounts receivable
Sales
$10,000
(To record the credit sales)
Cost of goods sold
Inventory
(To record the cost of goods sold)
2
$6,500
$6,500
3
Cash
$9,900
Sales discount ($10,000 x1%)
$100
$10,000
Accounts receivable
(To record the receipt of cash from
customers and sales discount)
help_outline

Image Transcriptionclose

Credit Post Debit (S) Account titles and Explanation Date ref (S) $10,000 1 Accounts receivable Sales $10,000 (To record the credit sales) Cost of goods sold Inventory (To record the cost of goods sold) 2 $6,500 $6,500 3 Cash $9,900 Sales discount ($10,000 x1%) $100 $10,000 Accounts receivable (To record the receipt of cash from customers and sales discount)

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Step 2

b) Prepare the journal entries in the accounting records of mulligans accounts...

Post
Credit
Debit (S)
Date
Account titles and Explanation
ref
(S)
$9,900
Inventory
$9.900
Accounts payable
(To record the credit purchases)
$9,900
Accounts payable
$9,900
Cash
(To record payment made for credit
purchases)
help_outline

Image Transcriptionclose

Post Credit Debit (S) Date Account titles and Explanation ref (S) $9,900 Inventory $9.900 Accounts payable (To record the credit purchases) $9,900 Accounts payable $9,900 Cash (To record payment made for credit purchases)

fullscreen

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