[The following information applies to the questions displayed below.] Hughes Hair Design is a wholesaler of hair supplies. Hughes Hair Design uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $32,397).$ 57,600b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $320).350c. Sold merchandise (costing $7,600) to a customer on account with terms n/60.16,000d. Collected half of the balance owed by the customer in (c).8,000e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid.180f. Anticipate further returns of merchandise (costing $240) after year-end from sales made during the year.360 Prepare journal entries to record transactions (a)–(f). (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Periodic inventory system means where day to day in or out of goods is not recorded and value of…

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Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 37E: Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following...

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[The following information applies to the questions displayed below.]

Hughes Hair Design is a wholesaler of hair supplies. Hughes Hair Design uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis:

a. Sold merchandise for cash (cost of merchandise $32,397).	$ 57,600
b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $320).	350
c. Sold merchandise (costing $7,600) to a customer on account with terms n/60.	16,000
d. Collected half of the balance owed by the customer in (c).	8,000
e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid.	180
f. Anticipate further returns of merchandise (costing $240) after year-end from sales made during the year.	360

Prepare journal entries to record transactions (a)–(f). (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

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