(Learning Objectives 1, 2, 3: Apply GAAP for sales, sales returns, and salesdiscounts) Pastel Interiors reported the following transactions in June:June 210111519Sold merchandise on account to Elisa Birch, $700, terms 1/10, n/30.Sold merchandise on account to Melissa Movens, $2,400, terms 1/10, n/30.Collected payment from Elisa Birch for June 2 sale.Movens returned $1,400 of the merchandise purchased on June 10.Collected payment from Movens for the balance of the June 10 sale.Requirements1. Record the foregoing transactions in the journal of Pastel Interiors using the gross method.(You do not need to make the cost of sales journal entries; assume that these entries will bemade by the company when it makes its other adjusting entries at period end.)2. Calculate the amount of gross sales minus sales discounts for the month of June
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
(Learning Objectives 1, 2, 3: Apply GAAP for sales, sales returns, and sales
discounts) Pastel Interiors reported the following transactions in June:
June 2
10
11
15
19
Sold merchandise on account to Elisa Birch, $700, terms 1/10, n/30.
Sold merchandise on account to Melissa Movens, $2,400, terms 1/10, n/30.
Collected payment from Elisa Birch for June 2 sale.
Movens returned $1,400 of the merchandise purchased on June 10.
Collected payment from Movens for the balance of the June 10 sale.
Requirements
1. Record the foregoing transactions in the journal of Pastel Interiors using the gross method.
(You do not need to make the cost of sales
made by the company when it makes its other
2. Calculate the amount of gross sales minus sales discounts for the month of June
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