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.
b. Received payment less the discount.
c. Refunded $750 to customer for defective merchandise that was not returned.
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.
Paid by Seller
|Freight Terms||Returns and
|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|
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.
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.
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.
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.
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:
Paid by Seller
|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 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?
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.
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|
|g. Sales Tax Payable|
Since we only answer only one question, we’ll answer the first question. Please resubmit the other question you’d like answered.
Journal entry involves the daily recording of each & every transaction in the books of accounts. The recording is made for every transaction which can be measured in terms of money. It involves debiting of one account and crediting the other account. Total of debit & credit side is equal.
Recording of journal entr...
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