Question

Question 1 Crane Company made a purchase of merchandise on credit from Wildhorse Company on August 8, for $9400, terms 2/10, n/30. On August 17, Crane makes payment to Wildhorse. The entry on August 17 for Crane Company is: Accounts Payable Cash 9400 9400 9212 9212 Accounts Payable Cash Accounts Payable Inventory Cash 9400 9212 9400 Accounts Payable Purchase Returns and Allowances Cash 188 9212 Click if you would like to Show Work for this question: Open Show Work Question 2 Swifty Company sells merchandise on account for $3100 to Cullumber Company with credit terms of 1/10, n/30. Cullumber Company returns $400 of merchandise that was damaged, along with a check to settle the account within the discount period. What entry does Swifty Company make upon receipt of the check? Cash 2700 Accounts Receivable 2700 Cash Sales Returns and Allowances Accounts Receivable Cash Sales Returns and Allowances Sales Discounts Accounts Receivable 400 3100 3069 31 Cash Sales Discounts Sales Returns and Allowances Accounts Receivable 400 2700 Question 3 When the physical count of Crane Company inventory had a cost of $4250 at year end and the unadjusted balance in Inventory was $4600, Crane will have to make the following entry Inventory Cost of Goods Sold Income Summary Inventory Cost of Goods Sold Inventory Cost of Goods Sold Inventory

Answer 1

Answer is given below with explanation

Answer is Option C) It is assumed Perpetual inventory system is followed Accounts payable is debited $9,400 Cash is credited for $ $9,212 Difference is reduced from inventory value $188 Answer is Option C) Credit Cash Sales Returns and allowance Sales discount To Accounts receivable Debit $2,673 $400 $27 (1% of $3,100-$400) $3,100 3 Answer is Option C) Since inventory value is reduced it is debited to Cost of Goods sold And Inventory value is reduced by $350