Mar. 1 Morris Supply sold merchandise inventory for $3,000. The cost of the inventory was $1,800. The customer paid cash. Morris Supply was running a promotion and the customer received a $150 award at the time of sale that can be used at a future date on any Morris Supply merchandise. 3 Sold $6,000 of supplies on account. Credit terms are 2/10, n/45, FOB destination. Cost of goods is $3,600. 10 Received payment from the customer on the amount due from March 3, less the discount. Apr. 15 The customer used the $150 award when purchasing merchandise inventory for $200, the cost of the inventory was $120. The customer paid cash.
Mar. 1 Morris Supply sold merchandise inventory for $3,000. The cost of the inventory was $1,800. The customer paid cash. Morris Supply was running a promotion and the customer received a $150 award at the time of sale that can be used at a future date on any Morris Supply merchandise. 3 Sold $6,000 of supplies on account. Credit terms are 2/10, n/45, FOB destination. Cost of goods is $3,600. 10 Received payment from the customer on the amount due from March 3, less the discount. Apr. 15 The customer used the $150 award when purchasing merchandise inventory for $200, the cost of the inventory was $120. The customer paid cash.
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
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 11RE
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Journalizing multiple performance obligations and sales transactions
Journalize the following sales transactions for Morris Supply. Explanations are not required.
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