Sales TransactionsJournalize 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.05-04eBook Show Me HowFreight TermsDetermine 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. MerchandiseFreightPaid by SellerFreight TermsReturns andAllowancesa.$36,000 $800  FOB destination, 1/10, n/30$4,000 b.44,900 375  FOB shipping point, 2/10, n/302,400 a.$b.$3. BE.05-05eBook Show Me HowTransactions for Buyer and SellerShore 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.05-08eBookShow Me HowSales-Related Transactions, Including the Use of Credit CardsJournalize 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.05-09eBookCustomer refundSenger 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.05-11eBookShow Me HowSales-Related TransactionsAfter 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.05-14eBookShow Me HowDetermining Amounts to be Paid on InvoicesDetermine 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: MerchandiseFreightPaid by Seller Returns andAllowancesa.$32,000      —             FOB destination, n/30$1,600      b.12,800      $300            FOB shipping point, 2/10, n/302,500      c.21,000      —             FOB shipping point, 1/10, n/304,000      d.9,000      175             FOB shipping point, 2/10, n/301,000      e.77,400      —             FOB destination, 1/10, n/30—      a.  $b.  $c.  $d.  $e.  $8. EX.05-18eBookShow Me HowSales TaxA 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.05-19eBookShow Me HowSales Tax TransactionsJournalize 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.05-20eBookNormal Balances of Merchandise AccountsWhat 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

Question
Asked Nov 10, 2019
165 views

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 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  
check_circle

Expert Answer

Step 1

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.

Step 2

Recording of journal entr...

Account title &explanation
Accounts receivables (2)
Debit ($)
Credit (S)
Sr. no.
91,575
a
.....Sales
91,575
(to record the sale of inventory on account after discount)
Cost of goods sold
..Merchandise inventory
(to record the cost of goods sold)
55,500
55,500
Cash
91,575
.....Counts receivable
(to record the cash received after deducting discount)
91,575
Sales allowance (1)
750
....Cash
750
(to record refund of amount to customer for defective merchandise)
help_outline

Image Transcriptionclose

Account title &explanation Accounts receivables (2) Debit ($) Credit (S) Sr. no. 91,575 a .....Sales 91,575 (to record the sale of inventory on account after discount) Cost of goods sold ..Merchandise inventory (to record the cost of goods sold) 55,500 55,500 Cash 91,575 .....Counts receivable (to record the cash received after deducting discount) 91,575 Sales allowance (1) 750 ....Cash 750 (to record refund of amount to customer for defective merchandise)

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Related Accounting Q&A

Find answers to questions asked by student like you

Show more Q&A add
question_answer

Q: Analyze your company’s liability section of the comparative balance sheets.  Has the composition of ...

A:  Change in the composition of current and long-term liabilities of Walmart’s balance sheet over a pe...

question_answer

Q: Explain how to calculate the after stock dividend to enter on the Balance Sheet. At the beginning of...

A: A Stock Dividend is the payment of dividends in the forms of shares of the company. In cash crunch s...

question_answer

Q: Presented below is information related to equipment owned by Davis Company at December 31, 2020.    ...

A: Impairment of Assets:Impairment of an asset refers to sudden decrease of the present value of econom...

question_answer

Q: Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for prepaid cell phone...

A: FIFO Method:FIFO is stands for First-in, first-out. Under this method, the oldest costs will be the ...

question_answer

Q: Wendy Chen established Windy City Coaching (WCC) to provide teen counseling and executive coaching s...

A: Activity Based Costing:Activity based costing is a costing that identifies activities in an organiza...

question_answer

Q: Maglie Company manufactures two video game consoles: handheld and home. The handheld consoles are sm...

A: Case 1:Under ABC CostingActivity based costing allocates manufacturing overhead on a more logical ba...

question_answer

Q: Answer questions 1 & 2  Exxon Mobil Corporation: Analyzing Effects of LIFO on Inventory Turnover...

A: Since we question only one question, we will answer the question no. 1. Please submit the question a...

question_answer

Q: At the end of the year, a company has the following accounts receivable and estimates of uncollectib...

A: Click to see the answer

question_answer

Q: Margin of Safety a. If Canace Company, with a break-even point at $386,900 of sales, has actual sale...

A: a. 1. Calculate the margin of safety (in Dollars).