riends Appliance uses a perpetual inventory system. The following are three recent merchandising transactions: May 10 Purchased 10 televisions from Sony Center on account. Invoice price, 30,000 per unit. The terms of purchase were 2/10, n/30. May 15 Sold one of these televisions for 35,000 cash. May 18 Sold Two of these television for 37,000 on Account. The credit term is 2/10, n/30. May 20 Paid the account payable to Sony Center within the discount period. May 25 Friends received cash of two televisions with in discount period. Instructions Assume that Friends did not pay Sony Center and received cash within the discount period. Prepare journal entries to record this payment and receipt assuming that the original liability and Asset had been recorded at: Net cost Gross invoice price
riends Appliance uses a perpetual inventory system. The following are three recent merchandising transactions: May 10 Purchased 10 televisions from Sony Center on account. Invoice price, 30,000 per unit. The terms of purchase were 2/10, n/30. May 15 Sold one of these televisions for 35,000 cash. May 18 Sold Two of these television for 37,000 on Account. The credit term is 2/10, n/30. May 20 Paid the account payable to Sony Center within the discount period. May 25 Friends received cash of two televisions with in discount period. Instructions Assume that Friends did not pay Sony Center and received cash within the discount period. Prepare journal entries to record this payment and receipt assuming that the original liability and Asset had been recorded at: Net cost Gross invoice price
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter20: Accounting For Inventory
Section: Chapter Questions
Problem 1MP
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Question
Friends Appliance uses a perpetual inventory system. The following are three recent merchandising transactions:
May 10 Purchased 10 televisions from Sony Center on account. Invoice price, 30,000 per unit. The terms of purchase were 2/10, n/30.
May 15 Sold one of these televisions for 35,000 cash.
May 18 Sold Two of these television for 37,000 on Account. The credit term is 2/10, n/30.
May 20 Paid the account payable to Sony Center within the discount period.
May 25 Friends received cash of two televisions with in discount period.
Instructions
- Assume that Friends did not pay Sony Center and received cash within the discount period. Prepare
journal entries to record this payment and receipt assuming that the original liability and Asset had been recorded at: - Net cost
- Gross invoice price
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