Mr. Ahmed Al Rawahi and Mr. Abdullah Al Rawahi started a business called BEST COMPUTER ACCESSORIES business in Nizwa. They purchase different types of Computer accessories from a Wholesale merchandiser and re-sells to retail merchandiser in Sultanate of Oman. The business follows Periodic Inventory System. Following are the business transactions: Identify all the business transactions in the books of BEST COMPUTER ACCESSORIES Date Transactions 1st January 2020 The business purchased 100 numbers of Dell Monitors at a cost of OMR 70 each from Rahman Computers (Wholesale merchandiser) The payment terms are 5/10, n/30. 3rd January 2020 Purchased 100 numbers of Acer Keyboard at a cost of OMR 60 each from Computer Supplies LLC. The payment terms are 3/10, n/30. Trade discount was given by the supplier @ 5% on the invoice price. 5th January 2020 The business discovers that 20 numbers of Dell monitors are HP monitors. Therefore, these goods are returned to Rahman Computers and requested for full refund. 9th January 2020 Rahman computers were settled with full payment. 15th February 2020 The business sold 80 numbers of Dell monitors at a Cost OMR 100 each to Nizwa Computers (a retail merchandiser). The payment terms are 2/10,n/60. 20th February 2020 Nizwa Computers discovers that 25 Dell monitors which was purchased on 15th February 2020 are slightly damaged. The customer decides to keep the monitors but receives a sales allowance OMR 10 per monitor. Which one of the following journal entry is Correct on 15th February 2020? a. Debit Purchase OMR 8000 Credit Accounts payable OMR 8000 b. Debit Accounts receivable OMR 7840 Credit Sales OMR 7840 c. Debit Sales OMR 8000 Credit Accounts receivables OMR 8000 d. Debit Accounts receivables OMR 8000 Credit Sales OMR 8000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 18E: Lakeesha Barnett owns and operates a package mailing store in a college town. Her store, Send It...

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Mr. Ahmed Al Rawahi and Mr. Abdullah Al Rawahi started a business called BEST COMPUTER ACCESSORIES business in Nizwa. They purchase different types of Computer accessories from a Wholesale merchandiser and re-sells to retail merchandiser in Sultanate of Oman. The business follows Periodic Inventory System. Following are the business transactions: Identify all the business transactions in the books of BEST COMPUTER ACCESSORIES Date Transactions 1st January 2020 The business purchased 100 numbers of Dell Monitors at a cost of OMR 70 each from Rahman Computers (Wholesale merchandiser) The payment terms are 5/10, n/30. 3rd January 2020 Purchased 100 numbers of Acer Keyboard at a cost of OMR 60 each from Computer Supplies LLC. The payment terms are 3/10, n/30. Trade discount was given by the supplier @ 5% on the invoice price. 5th January 2020 The business discovers that 20 numbers of Dell monitors are HP monitors. Therefore, these goods are returned to Rahman Computers and requested for full refund. 9th January 2020 Rahman computers were settled with full payment. 15th February 2020 The business sold 80 numbers of Dell monitors at a Cost OMR 100 each to Nizwa Computers (a retail merchandiser). The payment terms are 2/10,n/60. 20th February 2020 Nizwa Computers discovers that 25 Dell monitors which was purchased on 15th February 2020 are slightly damaged. The customer decides to keep the monitors but receives a sales allowance OMR 10 per monitor. Which one of the following journal entry is Correct on 15th February 2020? a. Debit Purchase OMR 8000 Credit Accounts payable OMR 8000 b. Debit Accounts receivable OMR 7840 Credit Sales OMR 7840 c. Debit Sales OMR 8000 Credit Accounts receivables OMR 8000 d. Debit Accounts receivables OMR 8000 Credit Sales OMR 8000

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