Question

QUESTION 3 On October 1, Darin Company sold merchandise in the amount of $6,500 to Schnee Company, terms 2/10, n/30. The items cost Darin $4,200 and the company uses the perpetual inventory method. On October 4, Schnee returns some of the merchandise. This merchandise had a selling price of $500 and a cost of $200. On October 8, Schnee Company paid Darin Company the correct amount due. 3. What is the journal entry that Darin makes on October 1 to record this sale? ОА. 6,500 Accounts Receivable Sales Revenue 6,500 6,500 6,500 Sales Revenue Accounts Receivable Costs of Goods Sold Inventory 4,200 4,200 OC. 6,500 Accounts Receivable Sales Revenue 2,300 4,200 Inventory OD 6,500 6,500 Accounts Receivable Sales Revenue Costs of Goods Sold Inventory 4,200 4,200

Answer 1

QUESTION 3

Journal entry on October 1 to record the sale is as follows:

Date	Account and Explanation	Debit($)	Credit($)
October 1	Account Receivable	6,500
	Sales Revenue		6,500
	(Recorded the sale)
October 1	Cost of goods Sold	4,200
	Inventory		4,200
	(Recorded the cost of goods sold)

So correct answer is option (D)

QUESTION 4

Journal entry on October 8 to record the payment is as follows:

Date	Account and Explanation	Debit($)	Credit($)
October 8	Sales Revenue (Discount) - ($6,500 - $500) * 2%	120
	Account Receivable		120
	(Recorded the discount on sale )
October 8	Cash ($6,000 - $120)	5,880
	Account Receivable		5,880
	(Recorded cash received from customer)

So correct answer is option (B)

QUESTION 6

	$
Sales Revenue	367,810
Less:Sales Return and Sales Discount	( 24,180)
Net Sale	$343,630
Less: Cost of Goods Sold	( 216,490)
Gross Margin (Gross Profit)	$127,140

Net Sales is $343,630 and Gross Margin (Gross Profit) is $127,140

So correct answer is option (C)