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Required information [The following information applies to the questions displayed below.] The transactions listed below are typical of those involving Southern Sporting Goods (SSG) and Sports R Us (SRU). SSG is a wholesale merchandiser and SRU is a retail merchandiser. Assume all sales of merchandise from SSG to SRU are made with terms n/30, and the two companies use perpetual inventory systems. Assume the following transactions between the two companies occurred in the order listed during the year ended December 31. a. SSG sold merchandise to SRU at a selling price of $150,000. The merchandise had cost SSG $104,000. b. Two days later, SRU complained to SSG that some of the merchandise differed from what SRU had ordered. SSG agreed to give an allowance of $5,500 to SRU. SRU also returned some sporting goods, which had cost SSG $14,500 and had been sold to SRU for $19,000. c. Just three days later SRU paid SSG, which settled all amounts owed. equired: . For each of the events (a) through (c), indicate the amount and direction of the effect on SSG in terms of the following items. (Enter any decreases to account balances with a minus sign.) Transaction a. b. C. Sales Revenues Sales Returns Sales Allowances Net Sales Cost of Goods Sold Gross Profit

Required information [The following information applies to the questions displayed below.] The transactions listed below are typical of those involving Southern Sporting Goods (SSG) and Sports R Us (SRU). SSG is a wholesale merchandiser and SRU is a retail merchandiser. Assume all sales of merchandise from SSG to SRU are made with terms n/30, and the two companies use perpetual inventory systems. Assume the following transactions between the two companies occurred in the order listed during the year ended December 31. a. SSG sold merchandise to SRU at a selling price of $150,000. The merchandise had cost SSG $104,000. b. Two days later, SRU complained to SSG that some of the merchandise differed from what SRU had ordered. SSG agreed to give an allowance of $5,500 to SRU. SRU also returned some sporting goods, which had cost SSG $14,500 and had been sold to SRU for $19,000. c. Just three days later SRU paid SSG, which settled all amounts owed. equired: . For each of the events (a) through (c), indicate the amount and direction of the effect on SSG in terms of the following items. (Enter any decreases to account balances with a minus sign.) Transaction a. b. C. Sales Revenues Sales Returns Sales Allowances Net Sales Cost of Goods Sold Gross Profit

Financial Accounting
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 7PB: Selected data on merchandise inventory, purchases, and sales for Jaffe Co. and Coronado Co. are as...
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Required information [The following information applies to the questions displayed below.] The transactions listed below are typical of those involving Southern Sporting Goods (SSG) and Sports R Us (SRU). SSG is a wholesale merchandiser and SRU is a retail merchandiser. Assume all sales of merchandise from SSG to SRU are made with terms n/30, and the two companies use perpetual inventory systems. Assume the following transactions between the two companies occurred in the order listed during the year ended December 31. a. SSG sold merchandise to SRU at a selling price of $150,000. The merchandise had cost SSG $104,000. b. Two days later, SRU complained to SSG that some of the merchandise differed from what SRU had ordered. SSG agreed to give an allowance of $5,500 to SRU. SRU also returned some sporting goods, which had cost SSG $14,500 and had been sold to SRU for $19,000. c. Just three days later SRU paid SSG, which settled all amounts owed. Required: . For each of the events (a) through (c), indicate the amount and direction of the effect on SSG in terms of the following items. (Enter any decreases to account balances with a minus sign.) Transaction a. b. C. Sales Revenues Sales Returns Sales Allowances Net Sales Cost of Goods Sold Gross Profit
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] The transactions listed below are typical of those involving Southern Sporting Goods (SSG) and Sports R Us (SRU). SSG is a wholesale merchandiser and SRU is a retail merchandiser. Assume all sales of merchandise from SSG to SRU are made with terms n/30, and the two companies use perpetual inventory systems. Assume the following transactions between the two companies occurred in the order listed during the year ended December 31. a. SSG sold merchandise to SRU at a selling price of $150,000. The merchandise had cost SSG $104,000. b. Two days later, SRU complained to SSG that some of the merchandise differed from what SRU had ordered. SSG agreed to give an allowance of $5,500 to SRU. SRU also returned some sporting goods, which had cost SSG $14,500 and had been sold to SRU for $19,000. c. Just three days later SRU paid SSG, which settled all amounts owed. Required: . For each of the events (a) through (c), indicate the amount and direction of the effect on SSG in terms of the following items. (Enter any decreases to account balances with a minus sign.) Transaction a. b. C. Sales Revenues Sales Returns Sales Allowances Net Sales Cost of Goods Sold Gross Profit
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