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MODLUE 5 INVENTORY PERIODIC Please record the following transactions and explain your answer. 1) On June 7 sold inventory that had cost us $800 for $1,000 on account to Smith. Freight to get the merchandise to our customer was paid by the customer 2) Accepted a return of merchandise from the June 7 sale to Smith that was the wrong size for the customer. We had sold the merchandise for $300; our cost was $240. 3) Shipped merchandise that had cost us $940 to Jones. New Stuff billed the customer $1,175 on the sale and paid $25 in freight to get the merchandise to the customer. 4) Received a check for the Smith June 7 sale.

MODLUE 5 INVENTORY PERIODIC Please record the following transactions and explain your answer. 1) On June 7 sold inventory that had cost us $800 for $1,000 on account to Smith. Freight to get the merchandise to our customer was paid by the customer 2) Accepted a return of merchandise from the June 7 sale to Smith that was the wrong size for the customer. We had sold the merchandise for $300; our cost was $240. 3) Shipped merchandise that had cost us $940 to Jones. New Stuff billed the customer $1,175 on the sale and paid $25 in freight to get the merchandise to the customer. 4) Received a check for the Smith June 7 sale.

Corporate Financial Accounting
Corporate Financial Accounting
15th Edition
ISBN:9781337398169
Author:Carl Warren, Jeff Jones
Publisher:Carl Warren, Jeff Jones
Chapter5: Accounting For Retailing Businesses
Section: Chapter Questions
Problem 5.44EX: Appendix 2 Cost of goods sold Identify the errors in the: following schedule of the cost of goods...
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MODLUE 5 INVENTORY PERIODIC

Please record the following transactions and explain your answer.

1) On June 7 sold inventory that had cost us $800 for $1,000 on account to Smith. Freight to get the merchandise to our customer was paid by the customer

2) Accepted a return of merchandise from the June 7 sale to Smith that was the wrong size for the customer. We had sold the merchandise for $300; our cost was $240.

3) Shipped merchandise that had cost us $940 to Jones. New Stuff billed the customer $1,175 on the sale and paid $25 in freight to get the merchandise to the customer.

4) Received a check for the Smith June 7 sale.

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