Question

Help to solve this problem for my Intro to Accounting class

Problems: 1. Sampson Co. sold merchandise to Batson Co. on account, 546,000, terms 2/15, net 45. The cost of the merchandise sold is $38.500. Sampson Caissued a credit memo for $1.500 for merchandise returned that originally cost $950. The Batson Co. paid the invoice within the discount period Prepare the entries that both Sampson and Batson Companies would record for the above. Assume both Sampson and Batson use a perpetual inventory system

Answer 1

Solutions Sampson company srinal entries: General yournal Debit I credit account necedrable. Batson con 4600D Sales 46000 cost of merchandise scold Marchandise buvo nentory 38500 38500 cash 46000-920) CF5080 Sabes discounts (4 600X2%) Account Receivable Batson cool 46000 Holes 2115 means with in 15 days. customer will get 2% discount

Barson company Journal entriest General journal Debit I credir. cas |46000 Marchashdise Drventory Accounts payable - Sampson co.. booo 6) Accounts payable -- Sampsonco. 46000 Marchandise Inventory (4600X20) cash . (4600-920) 920 45080 Note: Discount received for payment in discount period will be reduced from cost marchandise inventory purchased toy discount amount received.