Gd.27. On 4 June 20X1, a company sold $14,000 worth of goods, with a product cost of $9,000. The contract includes a return provision for60 days. The company has no experience with returns with this customer type, and as a result, revenue is not recognized. At the endof the return period, the customer returns 5% of the goods. The goods can be re-sold to another customer.Required:Prepare the journal entries for inventory both on the date of sale and at the end of the return period. (If no entry is required for atransaction/event, select "No journal entry required" in the first account field.)View transaction listJournal entry worksheet12Prepare the journal entry at the time of sale:Note: Enter debits before credits.Transaction1General Journal.DebitCredit On 4 June 20X1, a company sold $14,000 worth of goods, with a product cost of $9,000. The contract includes a return provision for60 days. The company has no experience with returns with this customer type, and as a result, revenue is not recognized. At the endof the return period, the customer returns 5% of the goods. The goods can be re-sold to another customer.Required:Prepare the journal entries for inventory both on the date of sale and at the end of the return period. (If no entry is required for atransaction/event, select "No journal entry required" in the first account field.)View transaction listJournal entry worksheet12Prepare the journal entry at the end of return period:Note: Enter debits before credits.Transaction:2General JournalDebitCredit

Journal Entry - Journal entry is the recording of business transaction in books of account, this is…

On 4 June 20X1, a company sold $14,000 worth of goods, with a product cost of $9,000. The contract includes a return provision for 60 days. The company has no experience with returns with this customer type, and as a result, revenue is not recognized. At the end of the return period, the customer returns 5% of the goods. The goods can be re-sold to another customer. Required: Prepare the journal entries for inventory both on the date of sale and at the end of the return period. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list

On 4 June 20X1, a company sold $14,000 worth of goods, with a product cost of $9,000. The contract includes a return provision for 60 days. The company has no experience with returns with this customer type, and as a result, revenue is not recognized. At the end of the return period, the customer returns 5% of the goods. The goods can be re-sold to another customer. Required: Prepare the journal entries for inventory both on the date of sale and at the end of the return period. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

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 April 5, a customer returns 20 bicycles with a sales price of $250 per bike to Barrio Bikes. Each bike cost Barrio Bikes $100. The customer had yet to pay on their account. The bikes are in sellable condition. Prepare the journal entry or entries to recognize this return if the company uses A. the perpetual inventory system B. the periodic inventory system
Blue Barns sold 136 gallons of paint at $31 per gallon on July 6 to a customer with a cost of $19 per gallon to Blue Barns. Terms of the sale are 2/15, n/45, invoice dated July 6. The customer pays their account in full on July 24. On July 28, the customer discovers 17 gallons are the wrong color and returns the paint for a full cash refund. Blue Barns returns the gallons to their inventory at the original cost per gallon. Record the journal entries to recognize these transactions for Blue Barns.
Record the journal entry or entries for each of the following sales transactions. Glow Industries sells 240 strobe lights at $40 per light to a customer on May 9. The cost to Glow is $23 per light. The terms of the sale are 5/15, n/40, invoice dated May 9. On May 13, the customer discovers 50 of the lights are the wrong color and are granted an allowance of $10 per light for the error. On May 21, the customer pays for the lights, less the allowance.
On March 12th, Company B sold $800 of inventory to a customer for $1,400. The customer paid $400 and promised to pay the difference within 10 days. Based on this transaction, match the account on the left with its appropriate debit or credit entry on the right. Inventory [ Choose] Accounts Receivable [Choose] Cash [ Choose] Cost of Goods Sold [ Choose ] Sales Revenue V[ Choose ] Credit $1,400 This account should not be indcluded in this entry. Debit $1,000 Debit $800 Net Income Credit $800 Debit $400 Debit $1,400
A company purchased inventory for $2,500 from a vendor on account, FOB shipping point, with terms of 2/10, n/30. The company paid the shipper $200 cash for freight in. The company then returned damaged goods worth $500. The invoice was then paid eight days after the invoice date. Assuming that there was no beginning inventory balance, the cost of inventory would be (Assume a perpetual inventory system.) OA. $1,960 B. $2,160 OC. $2,450 OD. $2,300
A company purchased inventory for $2,000 from a vendor on account, FOB shipping point, withterms of 2/10, n/30. The company paid the shipper $100 cash for freight in. The company then returneddamaged goods worth $200. The invoice has been paid 8 days after the sale. Assuming that there was nobeginning inventory balance, the cost of inventory would be: (Assume a perpetual inventory system)
On August 5, Oriole Ltd. sells goods for $1530 and the cost to Oriole was $700. Oriole expects a return rate of 5%. On August 12, goods with a selling price of $440 and a cost of $245 are returned for credit and restored to inventory. The journal entry to record the return will include a a>credit to Estimated Inventory Returns for $245. b>credit to Inventory for $245. c>debit to Accounts Receivable for $440. d>credit to Refund Liability for $440.
A company has the following transactions during March: March 3 Purchases inventory on account for $3,500, terms 2/10, n/30. March 5 Pays freight costs of $200 on inventory purchased on March 3. March 6 Returns inventory with a cost of $500. March 12 Pays the full amount due on March 3 purchase. March 29 Sells all inventory purchased on March 3 (less those returned on March 6) for $5,000 on account. Record all transactions, assuming the company uses a perpetual inventory system. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) 3 View transaction list View journal entry worksheet Date March 03 No 1 2 3 4 5 6 March 05 March 06 March 12 March 29 March 29 Inventory Accounts Payable Inventory Cash Accounts Payable Inventory Accounts Payable Cash Accounts Receivable Sales Revenue Cost of Goods Sold Inventory General Journal Debit 3,500 200 500 3,000 5,000 3,140 Credit 3,500 200 500 2,940 5,000 3,140 ***
On June 5, Staley Electronics purchases 180 units of inventory on account for $18 each. After closer examination, Staley determines 20 units are defective and returns them to its supplier for full credit on June 9. All remaining inventory is sold on account on June 16 for $31 each. Required: Record transactions for the purchase, return, and sale of inventory assuming the company uses a perpetual inventory system. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
On March 1, Bates Board Shop sells 280 surfboards to a local lifeguard station at a sales price of $430 per board. The cost to Bates is $180 per board. The terms of the sale are 3/15, n/30, with an invoice date of March 1. Create the journal entries for Bates to recognize the following transactions. Assume the perpetual inventory system is used. A. the initial sale B. the subsequent customer payment on March 10 If an amount box does not require an entry, leave it blank. Mar. 1 Accounts Receivable Accounts Receivable Cost of Goods Sold Cost of Goods Sold Mar. 1 - Select - - Select - - Select - - Select - Mar. 10 - Select - - Select - - Select - - Select - - Select - - Select -
On June 5, Staley Electronics purchases 200 units of inventory on account for $20 each. After closer examination, Staley determines 40 units are defective and returns them to its supplier for full credit on June 9. All remaining inventory is sold on account on June 16 for $35 each. Required: Record transactions for the purchase, return, and sale of inventory using a perpetual system.
Glasgow Company uses the periodic inventory system. On February 1, the corporation purchased inventory on account for $16,000. The terms were 3/10, n/30. On February 2, it returned damaged goods worth $500 to the supplier and was granted an allowance. Give the journal entry for the payment if the invoice is paid after the discount period. (Round your answers to the nearest dollar.)