Schofield Co. sold merchandise on account to Bernard Retail Inc. for $15,000, terms 2/10, n/30. The cost of the merchandise sold was $8,000. Assuming Schofield Co. uses the gross method of recording sales discounts. A. Journalize the entries to record the sale on December 31. B. Journalize the entries to record the receipt of payment assuming it is made within the discount period on December 31.* C. Journalize the entries to record the receipt of payment assuming it is made beyond the discount period on December 31.* *Refer to the Chart of Accounts for exact wording of account titles.
Schofield Co. sold merchandise on account to Bernard Retail Inc. for $15,000, terms 2/10, n/30. The cost of the merchandise sold was $8,000. Assuming Schofield Co. uses the gross method of recording sales discounts. A. Journalize the entries to record the sale on December 31. B. Journalize the entries to record the receipt of payment assuming it is made within the discount period on December 31.* C. Journalize the entries to record the receipt of payment assuming it is made beyond the discount period on December 31.* *Refer to the Chart of Accounts for exact wording of account titles.
College Accounting (Book Only): A Career Approach
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Chapter10: Cash Receipts And Cash Payments
Section: Chapter Questions
Problem 5PB: The following transactions were completed by Nelsons Hardware, a retailer, during September. Terms...
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Schofield Co. sold merchandise on account to Bernard Retail Inc. for $15,000, terms 2/10, n/30. The cost of the merchandise sold was $8,000. Assuming Schofield Co. uses the gross method of recording sales discounts.
A. | |
B. | Journalize the entries to record the receipt of payment assuming it is made within the discount period on December 31.* |
C. | Journalize the entries to record the receipt of payment assuming it is made beyond the discount period on December 31.* |
*Refer to the Chart of Accounts for exact wording of account titles. |
CHART OF ACCOUNTSSchofield CompanyGeneral Ledger
ASSETS | |
110 | Cash |
120 | |
125 | Notes Receivable |
130 | Inventory |
131 | Estimated Returns Inventory |
140 | Office Supplies |
141 | Store Supplies |
142 | Prepaid Insurance |
180 | Land |
192 | Store Equipment |
193 | |
194 | Office Equipment |
195 | Accumulated Depreciation-Office Equipment |
LIABILITIES | |
210 | Accounts Payable |
216 | Salaries Payable |
218 | Sales Tax Payable |
219 | Customer Refunds Payable |
220 | Unearned Rent |
221 | Notes Payable |
EQUITY | |
310 | Common Stock |
311 | |
312 | Dividends |
REVENUE | |
410 | Sales |
610 | Rent Revenue |
EXPENSES | |
510 | Cost of Goods Sold |
521 | Delivery Expense |
522 | Advertising Expense |
524 | Depreciation Expense-Store Equipment |
525 | Depreciation Expense-Office Equipment |
526 | Salaries Expense |
531 | Rent Expense |
533 | Insurance Expense |
534 | Store Supplies Expense |
535 | Office Supplies Expense |
536 | Credit Card Expense |
539 | Miscellaneous Expense |
710 | Interest Expense |
A. Journalize the entries to record the sale on December 31. Refer to the Chart of Accounts for exact wording of account titles.
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B. Journalize the entries to record the receipt of payment assuming it is made within the discount period on December 31. Refer to the Chart of Accounts for exact wording of account titles.
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ACCOUNTING EQUATION
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C. Journalize the entries to record the receipt of payment assuming it is made beyond the discount period on December 31. Refer to the Chart of Accounts for exact wording of account titles.
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ACCOUNTING EQUATION
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