Probiem 6.5B The following is a series of related transactions between Hip Pants and Sleek, achain of retail clothing storesЕ6а.12 OctHip Pants sold Sleek 300 pairs of pants on account, terms /10, n/30. The cost of thesepants to ip Pants was $80 per pair, and the sales price was $240 per pairWings Expres charged $400 for delivering the goods to Sleek. These charges weresplit evenly between the buyer and the seller and were paid immediatcly in cash.Sleek returned four pairs of pants to Hip Pants because they were the wrong size. HipPants allowed Sleek full credit for this returnSleek paid the remaining balance due to Hip Pants within the discount period15 Oct16 Oct22 Oct.Both companies use a perpetual inventory system.InstructionsSellerRecord this series of iransactions in the general journal of Hip Pants. (The compan recordssales at gross sales price.)Record this series of transactions in the general journal of Sleek. (The company recordspurchases of goods at netCost and uses a Transportation-in account to record transportationcharges on inbound shipments.)r Coа.buyarb.

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Asked Oct 24, 2019

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Probiem 6.5B The following is a series of related transactions between Hip Pants and Sleek, a
chain of retail clothing stores
Е6
а.
12 Oct
Hip Pants sold Sleek 300 pairs of pants on account, terms /10, n/30. The cost of these
pants to ip Pants was $80 per pair, and the sales price was $240 per pair
Wings Expres charged $400 for delivering the goods to Sleek. These charges were
split evenly between the buyer and the seller and were paid immediatcly in cash.
Sleek returned four pairs of pants to Hip Pants because they were the wrong size. Hip
Pants allowed Sleek full credit for this return
Sleek paid the remaining balance due to Hip Pants within the discount period
15 Oct
16 Oct
22 Oct.
Both companies use a perpetual inventory system.
Instructions
Seller
Record this series of iransactions in the general journal of Hip Pants. (The compan records
sales at gross sales price.)
Record this series of transactions in the general journal of Sleek. (The company records
purchases of goods at netCost and uses a Transportation-in account to record transportation
charges on inbound shipments.)r Co
а.
buyar
b.
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Probiem 6.5B The following is a series of related transactions between Hip Pants and Sleek, a chain of retail clothing stores Е6 а. 12 Oct Hip Pants sold Sleek 300 pairs of pants on account, terms /10, n/30. The cost of these pants to ip Pants was $80 per pair, and the sales price was $240 per pair Wings Expres charged $400 for delivering the goods to Sleek. These charges were split evenly between the buyer and the seller and were paid immediatcly in cash. Sleek returned four pairs of pants to Hip Pants because they were the wrong size. Hip Pants allowed Sleek full credit for this return Sleek paid the remaining balance due to Hip Pants within the discount period 15 Oct 16 Oct 22 Oct. Both companies use a perpetual inventory system. Instructions Seller Record this series of iransactions in the general journal of Hip Pants. (The compan records sales at gross sales price.) Record this series of transactions in the general journal of Sleek. (The company records purchases of goods at netCost and uses a Transportation-in account to record transportation charges on inbound shipments.)r Co а. buyar b.

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a. Prepare journal entries in ...

Date
Account title
Debit
Credit
12-Oct Accounts receivable
Sales (300x$240)
72,000.00
72,000.00
12-Oct Cost of goods sold
Inventory (300xS80)
24,000.00
24,000.00
15-Oct Delivery charges
400.00
Cash
400.00
16-Oct Sales return and allowances
960.00
Accounts receivable (4x$240)
960.00
16-Oct Inventory
80.00
Cost of goods sold
80.00
22-Oct Cash
70,329.60
Sales discount (71,040x1%
710.40
Accounts receivable (72,000-960)
71,040.00
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Date Account title Debit Credit 12-Oct Accounts receivable Sales (300x$240) 72,000.00 72,000.00 12-Oct Cost of goods sold Inventory (300xS80) 24,000.00 24,000.00 15-Oct Delivery charges 400.00 Cash 400.00 16-Oct Sales return and allowances 960.00 Accounts receivable (4x$240) 960.00 16-Oct Inventory 80.00 Cost of goods sold 80.00 22-Oct Cash 70,329.60 Sales discount (71,040x1% 710.40 Accounts receivable (72,000-960) 71,040.00

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