Melisandre Merchandising sold merchandise on credit to Ellaria, terms 2/10, n/45, $26,000, on April 6th, 2021, with a cost of $16,000. On April 6th, the journal entry recorded, under the PERIODIC method, would be:

Melisandre Merchandising sold merchandise on credit to Ellaria, terms 2/10, n/45, $26,000, on April 6th, 2021, with a cost of $16,000. On April 6th, the journal entry recorded, under the PERIODIC method, would be:

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 7Q: Sunrise Flowers sells flowers to a customer on credit for $130 on October 18, with a cost of sale to...

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Concept explainers

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.

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Melisandre Merchandising sold merchandise on credit to Ellaria, terms 2/10, n/45, $26,000, on April 6th, 2021, with a cost of $16,000.
On April 6th, the journal entry recorded, under the PERIODIC method, would be:

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