On June 15, Mike Wholesale Jewelry received an order for 500 pieces of Jewelry. The order was paid for when Waldorf Jewelry presented the order. The merchandise was shipped on June 30 and arrived July 3 at the place of business. Mike's Wholesale Jewelry has a return policy that allows a customer to return merchandise for up to 30 days for a full refund with no questions asked. Mike's Wholesale Jewelry has a return rate around 5%. The jewelry sells for $50 each and costs $20 each. 1. Using the FASB Codification, Show Mike's management the journal entries 1. at the time of the order takes place, 2. at the time the customer received the order and 3. when the 30 days return period has expired.
On June 15, Mike Wholesale Jewelry received an order for 500 pieces of Jewelry. The order was paid for when Waldorf Jewelry presented the order. The merchandise was shipped on June 30 and arrived July 3 at the place of business. Mike's Wholesale Jewelry has a return policy that allows a customer to return merchandise for up to 30 days for a full refund with no questions asked. Mike's Wholesale Jewelry has a return rate around 5%. The jewelry sells for $50 each and costs $20 each. 1. Using the FASB Codification, Show Mike's management the journal entries 1. at the time of the order takes place, 2. at the time the customer received the order and 3. when the 30 days return period has expired.
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 9EB: Blue Barns sold 136 gallons of paint at $31 per gallon on July 6 to a customer with a cost of $19...
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On June 15, Mike Wholesale Jewelry received an order for 500 pieces of Jewelry. The order was paid for when Waldorf Jewelry presented the order. The merchandise was shipped on June 30 and arrived July 3 at the place of business. Mike's Wholesale Jewelry has a return policy that allows a customer to return merchandise for up to 30 days for a full refund with no questions asked. Mike's Wholesale Jewelry has a return rate around 5%. The jewelry sells for $50 each and costs $20 each. 1. Using the FASB Codification, Show Mike's management the journal entries 1. at the time of the order takes place, 2. at the time the customer received the order and 3. when the 30 days return period has expired.
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