(Learning Objectives 1, 3: Apply GAAP for proper revenue recognition; accountfor sales discounts) Marshall Industrial Supply offers terms of 2/10, n/30 to its wholesalecustomers. Marshall’s cost of goods sold is 30% of sales. The company had the followingtransactions during October:October 1 Sold $8,000 of merchandise to Pez Co. on account.Sold $1,000 of merchandise to Omaha Corporation, who paid by credit card. Thecredit card company charges Marshall a fee of 2% on credit card sales.October 3October 12 Sold $17,000 of merchandise to Wexler Enterprises on account.October 16 Magnolia paid the balance of what it owed for the purchase on October 7.October 31 Wexler paid the balance of what it owed for the purchase on October 12.October 7 Sold $32,000 of merchandise to Magnolia Company on account.October 8 Pez paid the balance of what it owed for the purchase on October 1.Requirements1. Record Marshall’s transactions, including the cost of goods sold entry for each sale.2. Calculate the net sales revenue for the month.
(Learning Objectives 1, 3: Apply GAAP for proper revenue recognition; account
for sales discounts) Marshall Industrial Supply offers terms of 2/10, n/30 to its wholesale
customers. Marshall’s cost of goods sold is 30% of sales. The company had the following
transactions during October:
October 1 Sold $8,000 of merchandise to Pez Co. on account.
Sold $1,000 of merchandise to Omaha Corporation, who paid by credit card. The
credit card company charges Marshall a fee of 2% on credit card sales.
October 3
October 12 Sold $17,000 of merchandise to Wexler Enterprises on account.
October 16 Magnolia paid the balance of what it owed for the purchase on October 7.
October 31 Wexler paid the balance of what it owed for the purchase on October 12.
October 7 Sold $32,000 of merchandise to Magnolia Company on account.
October 8 Pez paid the balance of what it owed for the purchase on October 1.
Requirements
1. Record Marshall’s transactions, including the cost of goods sold entry for each sale.
2. Calculate the net sales revenue for the month.
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