Chapters 4 - 7
Debit 2500 Sales salaries expense Credit 2500 sales salaries payable
Accrued sales salaries amount to $2,500
Debit 4,500 Selling expenses Credit 4,500 Prepaid selling expenses
Prepaid selling expenses of 4,500 have expired
Debit accounts payable 16900 Credit Merchandise Inventory (.03* 16900) 507 Credit Cash (.97 * 16900) 16393
Prepare entries that the buyer should record for the cash payment Santa Fe paid within the discount period. Santa Fe Company purchased merchandise for resale from Mesa Company with an invoice price of $16,900 and credit terms of 3/10, n/60. The merchandise had cost Mesa $11,526. Santa Fe paid within the discount period. Assume that both buyer and seller use a perpetual inventory system.
Debit Merchandise Inventory 16900 Credit Accounts Payable 16900
Prepare entries that the buyer should record for the purchase.Santa Fe Company purchased merchandise for resale from Mesa Company with an invoice price of $16,900 and credit terms of 3/10, n/60.
Debit Account Receivable 16900 Credit Sales 16900
Prepare entries that the seller should record for the sale. Santa Fe Company purchased merchandise for resale from Mesa Company with an invoice price of $16,900 and credit terms of 3/10, n/60.
Debit Merchandise Inventory 1200 Credit Cash 1200
Record a 1200 cash purchase of inventory
Debit Cash ( 16900*.97 ) 16393 Debit Sales Discounts (16900 *.03 ) 507 Credit Accounts Receivable 16900
Santa Fe Company purchased merchandise for resale from Mesa Company with an invoice price of $16,900 and credit terms of 3/10, n/60. The merchandise had cost Mesa $11,526. Santa Fe paid within the discount period. Assume that both buyer and seller use a perpetual inventory system. 2(b) Prepare entries that the seller should record for the cash collection. Santa Fe paid within the discount period.
net sales - cost of goods sold = gross profit
___________ - _________ = gross profit
Gross profit - Expenses = Net Income
___________- ____________ = Net Income
