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ACC 291T Wk 2 – Practice: Connect Knowledge Check (New)
Prepare journal entries to record each of the following sales transactions of a merchandising company. The company uses a perpetual inventory system and the gross method.
Apr. | 1 | Sold merchandise for $4,200, with credit terms n/30; invoice dated April 1. The cost of the merchandise is $2,520. | ||
Apr. | 4 | The customer in the April 1 sale returned $500 of merchandise for full credit. The merchandise, which had cost $300, is returned to inventory. | ||
Apr. | 8 | Sold merchandise for $1,600, with credit terms of 1/10, n/30; invoice dated April 8. Cost of the merchandise is $1,120. | ||
Apr. | 11 | Received payment for the amount due from the April 1 sale less the return on April 4. |
It’s highly recommended that you use your first attempt as a study attempt, if needed.
True or False
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窗体底端
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[The following information applies to the questions displayed below.]
Allied Merchandisers was organized on May 1. Macy Co. is a major customer (buyer) of Allied (seller) products.
May | 3 | Allied made its first and only purchase of inventory for the period on May 3 for 3,000 units at a price of $10 cash per unit (for a total cost of $30,000). | ||
5 | Allied sold 1,500 of the units in inventory for $14 per unit (invoice total: $21,000) to Macy Co. under credit terms 2/10, n/60. The goods cost Allied $15,000. | |||
7 | Macy returns 150 units because they did not fit the customer’s needs (invoice amount: $2,100). Allied restores the units, which cost $1,500, to its inventory. | |||
8 | Macy discovers that 150 units are scuffed but are still of use and, therefore, keeps the units. Allied gives a price reduction (allowance) and credits Macy’s accounts receivable for $900 to compensate for the damage. | |||
15 | Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount. |
Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method.
A company reports the following sales-related information.
Sales, gross | $ | 225,000 | Sales returns and allowances | $ | 16,000 | ||
Sales discounts | 4,500 | Sales salaries expense | 10,500 | ||||
Prepare the net sales portion only of this company’s multiple-step income statement.