Based on the information below: a. Seller sold merchandise on account to the buyer, $4,750, terms 2/10, net 30, FOB shipping point on December 21. The cost of the merchandise is $2,850. The seller prepays the freight of $75. b. Buyer returns $700 of merchandise as defective on December 28. The cost of the merchandise is $420. c. Buyer pays within the discount period on December 31. Required: Journalize the entries for the Seller and the Buyer. Both use a perpetual inventory system. Refer to the Chart of Accounts for exact wording of account titles. If no entry is required, simply skip to the next transaction. Journalize the transactions . Refer to the Chart of Accounts for exact wording of account titles. If no entry is required, simply skip to the next transaction.
Based on the information below: a. Seller sold merchandise on account to the buyer, $4,750, terms 2/10, net 30, FOB shipping point on December 21. The cost of the merchandise is $2,850. The seller prepays the freight of $75. b. Buyer returns $700 of merchandise as defective on December 28. The cost of the merchandise is $420. c. Buyer pays within the discount period on December 31. Required: Journalize the entries for the Seller and the Buyer. Both use a perpetual inventory system. Refer to the Chart of Accounts for exact wording of account titles. If no entry is required, simply skip to the next transaction. Journalize the transactions . Refer to the Chart of Accounts for exact wording of account titles. If no entry is required, simply skip to the next transaction.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 13GI
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Question
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Based on the information below:
a. | Seller sold merchandise on account to the buyer, $4,750, terms 2/10, net 30, FOB shipping point on December 21. The cost of the merchandise is $2,850. The seller prepays the freight of $75. |
b. | Buyer returns $700 of merchandise as defective on December 28. The cost of the merchandise is $420. |
c. | Buyer pays within the discount period on December 31. |
Required:
Journalize the transactions . Refer to the Chart of Accounts for exact wording of account titles. If no entry is required, simply skip to the next transaction. |
Seller
PAGE 1
JOURNAL
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JOURNAL
ACCOUNTING EQUATION
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