Sales Transactions Journalize the following merchandise transactions: a. Sold merchandise on account, $92,500 with terms 1/10, n/30. The cost of the goods sold was $55,500. Sale Cost b. Received payment less the discount. c. Refunded $750 to customer for defective merchandise that was not returned. 2. BE.05-04 eBook Show Me How Freight Terms Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Merchandise FreightPaid by Seller Freight Terms Returns andAllowances a. $36,000 $800 FOB destination, 1/10, n/30 $4,000 b. 44,900 375 FOB shipping point, 2/10, n/30 2,400 a. $ b. $ 3. BE.05-05 eBook Show Me How Transactions for Buyer and Seller Shore Co. sold merchandise to Blue Star Co. on account, $112,000, terms FOB shipping point, 2/10, n/30. The cost of the goods sold is $67,200. Shore paid freight of $1,800. Journalize Shore Co.'s entry for the sale, purchase, and payment of amount due. Journalize Blue Star Co.'s entry for the sale, purchase, and payment of amount due. 4. EX.05-08 eBook Show Me How Sales-Related Transactions, Including the Use of Credit Cards Journalize the entries for the following transactions: a. Sold merchandise for cash, $25,000. The cost of the goods sold was $17,500. (Record the sale first.) b. Sold merchandise on account, $98,000. The cost of the goods sold was $58,800. (Record the sale first.) c. Sold merchandise to customers who used MasterCard and VISA, $475,000. The cost of the goods sold was $280,000. (Record the sale first.) d. Sold merchandise to customers who used American Express, $63,000. The cost of the goods sold was $39,000. (Record the sale first.) e. Received and paid an invoice from National Clearing House Credit Co. for $13,450, representing a service fee paid for processing MasterCard, VISA, and American Express sales. 5. EX.05-09 eBook Customer refund Senger Company sold merchandise of $15,500, terms 2/10, n/30, to Burris Inc. on April 23. Burris paid Senger for the merchandise on May 2. On May 12, Senger paid Burris $650 for costs incurred by Burris to repair defective merchandise. a. Journalize the entry by Senger Company to record the customer refund to Burris Inc. b. Assume that instead of paying Burris cash, Senger issued a credit memo to Burris to be used against Burris’s outstanding account receivable balance. Journalize the entry by Senger Company to record the issuance of the credit memo. 6. EX.05-11 eBook Show Me How Sales-Related Transactions After the amount due on a sale of $28,000, terms 2/10, n/eom, is received from a customer within the discount period, the seller consents to the return of the entire shipment for a cash refund. The cost of the merchandise returned is $16,800. a. What is the amount of the refund owed to the customer?$ b. Journalize the entries made by the seller to record the return and the refund. (a) (b) 7. EX.05-14 eBook Show Me How Determining Amounts to be Paid on Invoices Determine the amount to be paid in full settlement of each of the following invoices, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period: Merchandise FreightPaid by Seller Returns andAllowances a. $32,000 — FOB destination, n/30 $1,600 b. 12,800 $300 FOB shipping point, 2/10, n/30 2,500 c. 21,000 — FOB shipping point, 1/10, n/30 4,000 d. 9,000 175 FOB shipping point, 2/10, n/30 1,000 e. 77,400 — FOB destination, 1/10, n/30 — a. $ b. $ c. $ d. $ e. $ 8. EX.05-18 eBook Show Me How Sales Tax A sale of merchandise on account for $36,000 is subject to an 8% sales tax. a. Should the sales tax be recorded at the time of sale or when payment is received? b. What is the amount credited to sales?$ c. What is the amount debited to Accounts Receivable?$ d. What is the account to which the $2,880 ($36,000 × 8%) is credited? 9. EX.05-19 eBook Show Me How Sales Tax Transactions Journalize the entries to record the following selected transactions: a. Sold $640,000 of merchandise on account, subject to a sales tax of 7%. The cost of the goods sold was $385,000. If an amount box does not require an entry, leave it blank. b. Paid $61,750 to the state sales tax department for taxes collected. 10. EX.05-20 eBook Normal Balances of Merchandise Accounts What is the normal balance of the following accounts? a. Cost of Goods Sold b. Customer Refunds Payable c. Delivery Expense d. Estimated Returns Inventory e. Inventory f. Sales g. Sales Tax Payable
Sales Transactions Journalize the following merchandise transactions: a. Sold merchandise on account, $92,500 with terms 1/10, n/30. The cost of the goods sold was $55,500. Sale Cost b. Received payment less the discount. c. Refunded $750 to customer for defective merchandise that was not returned. 2. BE.05-04 eBook Show Me How Freight Terms Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Merchandise FreightPaid by Seller Freight Terms Returns andAllowances a. $36,000 $800 FOB destination, 1/10, n/30 $4,000 b. 44,900 375 FOB shipping point, 2/10, n/30 2,400 a. $ b. $ 3. BE.05-05 eBook Show Me How Transactions for Buyer and Seller Shore Co. sold merchandise to Blue Star Co. on account, $112,000, terms FOB shipping point, 2/10, n/30. The cost of the goods sold is $67,200. Shore paid freight of $1,800. Journalize Shore Co.'s entry for the sale, purchase, and payment of amount due. Journalize Blue Star Co.'s entry for the sale, purchase, and payment of amount due. 4. EX.05-08 eBook Show Me How Sales-Related Transactions, Including the Use of Credit Cards Journalize the entries for the following transactions: a. Sold merchandise for cash, $25,000. The cost of the goods sold was $17,500. (Record the sale first.) b. Sold merchandise on account, $98,000. The cost of the goods sold was $58,800. (Record the sale first.) c. Sold merchandise to customers who used MasterCard and VISA, $475,000. The cost of the goods sold was $280,000. (Record the sale first.) d. Sold merchandise to customers who used American Express, $63,000. The cost of the goods sold was $39,000. (Record the sale first.) e. Received and paid an invoice from National Clearing House Credit Co. for $13,450, representing a service fee paid for processing MasterCard, VISA, and American Express sales. 5. EX.05-09 eBook Customer refund Senger Company sold merchandise of $15,500, terms 2/10, n/30, to Burris Inc. on April 23. Burris paid Senger for the merchandise on May 2. On May 12, Senger paid Burris $650 for costs incurred by Burris to repair defective merchandise. a. Journalize the entry by Senger Company to record the customer refund to Burris Inc. b. Assume that instead of paying Burris cash, Senger issued a credit memo to Burris to be used against Burris’s outstanding account receivable balance. Journalize the entry by Senger Company to record the issuance of the credit memo. 6. EX.05-11 eBook Show Me How Sales-Related Transactions After the amount due on a sale of $28,000, terms 2/10, n/eom, is received from a customer within the discount period, the seller consents to the return of the entire shipment for a cash refund. The cost of the merchandise returned is $16,800. a. What is the amount of the refund owed to the customer?$ b. Journalize the entries made by the seller to record the return and the refund. (a) (b) 7. EX.05-14 eBook Show Me How Determining Amounts to be Paid on Invoices Determine the amount to be paid in full settlement of each of the following invoices, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period: Merchandise FreightPaid by Seller Returns andAllowances a. $32,000 — FOB destination, n/30 $1,600 b. 12,800 $300 FOB shipping point, 2/10, n/30 2,500 c. 21,000 — FOB shipping point, 1/10, n/30 4,000 d. 9,000 175 FOB shipping point, 2/10, n/30 1,000 e. 77,400 — FOB destination, 1/10, n/30 — a. $ b. $ c. $ d. $ e. $ 8. EX.05-18 eBook Show Me How Sales Tax A sale of merchandise on account for $36,000 is subject to an 8% sales tax. a. Should the sales tax be recorded at the time of sale or when payment is received? b. What is the amount credited to sales?$ c. What is the amount debited to Accounts Receivable?$ d. What is the account to which the $2,880 ($36,000 × 8%) is credited? 9. EX.05-19 eBook Show Me How Sales Tax Transactions Journalize the entries to record the following selected transactions: a. Sold $640,000 of merchandise on account, subject to a sales tax of 7%. The cost of the goods sold was $385,000. If an amount box does not require an entry, leave it blank. b. Paid $61,750 to the state sales tax department for taxes collected. 10. EX.05-20 eBook Normal Balances of Merchandise Accounts What is the normal balance of the following accounts? a. Cost of Goods Sold b. Customer Refunds Payable c. Delivery Expense d. Estimated Returns Inventory e. Inventory f. Sales g. Sales Tax Payable
Sales Transactions Journalize the following merchandise transactions: a. Sold merchandise on account, $92,500 with terms 1/10, n/30. The cost of the goods sold was $55,500. Sale Cost b. Received payment less the discount. c. Refunded $750 to customer for defective merchandise that was not returned. 2. BE.05-04 eBook Show Me How Freight Terms Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Merchandise FreightPaid by Seller Freight Terms Returns andAllowances a. $36,000 $800 FOB destination, 1/10, n/30 $4,000 b. 44,900 375 FOB shipping point, 2/10, n/30 2,400 a. $ b. $ 3. BE.05-05 eBook Show Me How Transactions for Buyer and Seller Shore Co. sold merchandise to Blue Star Co. on account, $112,000, terms FOB shipping point, 2/10, n/30. The cost of the goods sold is $67,200. Shore paid freight of $1,800. Journalize Shore Co.'s entry for the sale, purchase, and payment of amount due. Journalize Blue Star Co.'s entry for the sale, purchase, and payment of amount due. 4. EX.05-08 eBook Show Me How Sales-Related Transactions, Including the Use of Credit Cards Journalize the entries for the following transactions: a. Sold merchandise for cash, $25,000. The cost of the goods sold was $17,500. (Record the sale first.) b. Sold merchandise on account, $98,000. The cost of the goods sold was $58,800. (Record the sale first.) c. Sold merchandise to customers who used MasterCard and VISA, $475,000. The cost of the goods sold was $280,000. (Record the sale first.) d. Sold merchandise to customers who used American Express, $63,000. The cost of the goods sold was $39,000. (Record the sale first.) e. Received and paid an invoice from National Clearing House Credit Co. for $13,450, representing a service fee paid for processing MasterCard, VISA, and American Express sales. 5. EX.05-09 eBook Customer refund Senger Company sold merchandise of $15,500, terms 2/10, n/30, to Burris Inc. on April 23. Burris paid Senger for the merchandise on May 2. On May 12, Senger paid Burris $650 for costs incurred by Burris to repair defective merchandise. a. Journalize the entry by Senger Company to record the customer refund to Burris Inc. b. Assume that instead of paying Burris cash, Senger issued a credit memo to Burris to be used against Burris’s outstanding account receivable balance. Journalize the entry by Senger Company to record the issuance of the credit memo. 6. EX.05-11 eBook Show Me How Sales-Related Transactions After the amount due on a sale of $28,000, terms 2/10, n/eom, is received from a customer within the discount period, the seller consents to the return of the entire shipment for a cash refund. The cost of the merchandise returned is $16,800. a. What is the amount of the refund owed to the customer?$ b. Journalize the entries made by the seller to record the return and the refund. (a) (b) 7. EX.05-14 eBook Show Me How Determining Amounts to be Paid on Invoices Determine the amount to be paid in full settlement of each of the following invoices, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period: Merchandise FreightPaid by Seller Returns andAllowances a. $32,000 — FOB destination, n/30 $1,600 b. 12,800 $300 FOB shipping point, 2/10, n/30 2,500 c. 21,000 — FOB shipping point, 1/10, n/30 4,000 d. 9,000 175 FOB shipping point, 2/10, n/30 1,000 e. 77,400 — FOB destination, 1/10, n/30 — a. $ b. $ c. $ d. $ e. $ 8. EX.05-18 eBook Show Me How Sales Tax A sale of merchandise on account for $36,000 is subject to an 8% sales tax. a. Should the sales tax be recorded at the time of sale or when payment is received? b. What is the amount credited to sales?$ c. What is the amount debited to Accounts Receivable?$ d. What is the account to which the $2,880 ($36,000 × 8%) is credited? 9. EX.05-19 eBook Show Me How Sales Tax Transactions Journalize the entries to record the following selected transactions: a. Sold $640,000 of merchandise on account, subject to a sales tax of 7%. The cost of the goods sold was $385,000. If an amount box does not require an entry, leave it blank. b. Paid $61,750 to the state sales tax department for taxes collected. 10. EX.05-20 eBook Normal Balances of Merchandise Accounts What is the normal balance of the following accounts? a. Cost of Goods Sold b. Customer Refunds Payable c. Delivery Expense d. Estimated Returns Inventory e. Inventory f. Sales g. Sales Tax Payable
Journalize the following merchandise transactions:
a. Sold merchandise on account, $92,500 with terms 1/10, n/30. The cost of the goods sold was $55,500.
Sale
Cost
b. Received payment less the discount.
c. Refunded $750 to customer for defective merchandise that was not returned.
2. BE.05-04
eBook
Show Me How
Freight Terms
Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period.
Merchandise
Freight Paid by Seller
Freight Terms
Returns and Allowances
a.
$36,000
$800
FOB destination, 1/10, n/30
$4,000
b.
44,900
375
FOB shipping point, 2/10, n/30
2,400
a.
$
b.
$
3. BE.05-05
eBook
Show Me How
Transactions for Buyer and Seller
Shore Co. sold merchandise to Blue Star Co. on account, $112,000, terms FOB shipping point, 2/10, n/30. The cost of the goods sold is $67,200. Shore paid freight of $1,800.
Journalize Shore Co.'s entry for the sale, purchase, and payment of amount due.
Journalize Blue Star Co.'s entry for the sale, purchase, and payment of amount due.
4. EX.05-08
eBook
Show Me How
Sales-Related Transactions, Including the Use of Credit Cards
Journalize the entries for the following transactions:
a. Sold merchandise for cash, $25,000. The cost of the goods sold was $17,500. (Record the sale first.)
b. Sold merchandise on account, $98,000. The cost of the goods sold was $58,800. (Record the sale first.)
c. Sold merchandise to customers who used MasterCard and VISA, $475,000. The cost of the goods sold was $280,000. (Record the sale first.)
d. Sold merchandise to customers who used American Express, $63,000. The cost of the goods sold was $39,000. (Record the sale first.)
e. Received and paid an invoice from National Clearing House Credit Co. for $13,450, representing a service fee paid for processing MasterCard, VISA, and American Express sales.
5. EX.05-09
eBook
Customer refund
Senger Company sold merchandise of $15,500, terms 2/10, n/30, to Burris Inc. on April 23. Burris paid Senger for the merchandise on May 2. On May 12, Senger paid Burris $650 for costs incurred by Burris to repair defective merchandise.
a. Journalize the entry by Senger Company to record the customer refund to Burris Inc.
b. Assume that instead of paying Burris cash, Senger issued a credit memo to Burris to be used against Burris’s outstanding account receivable balance. Journalize the entry by Senger Company to record the issuance of the credit memo.
6. EX.05-11
eBook
Show Me How
Sales-Related Transactions
After the amount due on a sale of $28,000, terms 2/10, n/eom, is received from a customer within the discount period, the seller consents to the return of the entire shipment for a cash refund. The cost of the merchandise returned is $16,800.
a. What is the amount of the refund owed to the customer? $
b. Journalize the entries made by the seller to record the return and the refund.
(a)
(b)
7. EX.05-14
eBook
Show Me How
Determining Amounts to be Paid on Invoices
Determine the amount to be paid in full settlement of each of the following invoices, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period:
Merchandise
Freight Paid by Seller
Returns and Allowances
a.
$32,000
—
FOB destination, n/30
$1,600
b.
12,800
$300
FOB shipping point, 2/10, n/30
2,500
c.
21,000
—
FOB shipping point, 1/10, n/30
4,000
d.
9,000
175
FOB shipping point, 2/10, n/30
1,000
e.
77,400
—
FOB destination, 1/10, n/30
—
a. $
b. $
c. $
d. $
e. $
8. EX.05-18
eBook
Show Me How
Sales Tax
A sale of merchandise on account for $36,000 is subject to an 8% sales tax.
a. Should the sales tax be recorded at the time of sale or when payment is received?
b. What is the amount credited to sales? $
c. What is the amount debited to Accounts Receivable? $
d. What is the account to which the $2,880 ($36,000 × 8%) is credited?
9. EX.05-19
eBook
Show Me How
Sales Tax Transactions
Journalize the entries to record the following selected transactions:
a. Sold $640,000 of merchandise on account, subject to a sales tax of 7%. The cost of the goods sold was $385,000.
If an amount box does not require an entry, leave it blank.
b. Paid $61,750 to the state sales tax department for taxes collected.
10. EX.05-20
eBook
Normal Balances of Merchandise Accounts
What is the normal balance of the following accounts?
a. Cost of Goods Sold
b. Customer Refunds Payable
c. Delivery Expense
d. Estimated Returns Inventory
e. Inventory
f. Sales
g. Sales Tax Payable
Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.
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