BA: Chapter 4

Ace your homework & exams now with Quizwiz!

The Beginning Inventory $9000 June 1: Sold 50 units of merch to a customer for $150 per unit under credit terms of 2/n, n/30, FOB shipping point, the invoice is dated June 1. The 50 units of merchandise had cost $100 per unit. June 7: The customer returns 2 units purchased on June 1 because those units did not fit its needs, The seller restores those units to its inventory (as they are not defective) and credits accounts receivable from the customer. June 11: The sellee receives the balance due from the June sale to the customer less returns and allowances. The customer discovers that 10 units have minor damage but keeps them because the seller sends a $150 cash payment allowance to compensate.

6/1 A/R debit $7500 Sales credit $7500 6/1 Cost of Goods sold debit $5000 Merchandise Inventory credit $5000 6/7 Sales Returns and Allowances debit $300 A/R credit $300 6/7 Merchandise Inventory debit $200 Cost of goods sold credit $200 6/11 Cash debit $7056 Sale Discount debit $144 A/R credit $7200 6/14 Sales Return and Allowance debit $50 Cash credit $50

Inventory available $656

May 31 Cost of Goods Sold debit $100 Merch Invent credit $100 May 31 Sales debit $4300 Income Sum credit $4300 May 31 Income Sum debit $3800 Sales Dis credit $50 Sales R&A Credit $250 CGS Credit $2200 Depr Exp Credit $400 Salaries Exp Credit $600 Other Exp Credit $300 May 31 Income Summary debit $500 R/E credit $500 May 31 R/E debit $150 Dividends credit $150


Related study sets

Ch. 37: Child with a Communicable Disease

View Set

Unit 12 Interest Groups Key Terms and Quiz

View Set

Chapter 52: Care of the Patient with a Sensory Disorder

View Set

Nutrition Exam 3 Collection - 19

View Set

Chapter eleven: the cost of capital

View Set

Intermediate Accounting Chapter 18: Shareholders' Equity

View Set

Chapter 4: Common Reproductive Issues-Contraception (Prep U)

View Set