The transactions listed below are typical of those involving New Books Inc. and Readers' Corner. New Books is a wholesale merchandiser and Readers' Corner is a retail merchandiser. Assume all sales of merchandise from New Books to Readers' Corner are made with terms n / 30, and the two companies use perpetual inventory systems. Assume the following transactions between the two companies occurred in the order listed during the year ended August 31 .
a. New Books sold merchandise to Readers' Corner at a selling price of $565,000. The merchandise had cost New Books $421,000
b. Two days later. Readers' Corner complained to New Books that some of the merchandise differed from what Readers' Corner had ordered. New Books agreed to give an allowance of $11,500 to Readers' Corner. Readers' Corner also returned some books, which had cost New Books $2,300 and had been sold to Readers" Corner for $3,800 .
C. Just three days later. Readers" Corner paid New Books, which settled all amounts owed.
2. Prepare the journal entries to record New Books transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" In the first account field.)
Journal entries to record New Books transactions | |||
Transaction | Account Titles and Explanation | Debit | Credit |
a(1) | Accounts receivable | $565,000 | |
Sales revenue | $565,000 | ||
(To record credit sales) | |||
a(2) | Cost of Goods Sold | $421,000 | |
Inventory | $421,000 | ||
(To record the cost of goods sold) | |||
b (1) | Sales returns and allowances [$11,500 + $3,800] | $15,300 | |
Accounts receivables | $15,300 | ||
(To record sales returns and allowances) | |||
b(2) | Inventory | $2,300 | |
Cost of Goods Sold | $2,300 | ||
(To record return of inventory) | |||
c | Cash [Total sales - Allowances - Value of returned merchandise = $565,000 - $11,500 - $3,800] | $549,700 | |
Accounts receivable | $549,700 | ||
(To record cash received) |
The transactions listed below are typical of those involving New Books Inc
Required Information [The following information applies to the questions displayed below.) The transactions listed below are typical of those involving New Books Inc. and Readers' Corner. New Books is a tail merchandiser. Assume all sales of merchandise from New Books to Readers' Corner are made with terms n/30, and the two companies use perpetual inventory systems. Assume the following transactions between the two companies occurred in the order listed during the year ended August 31. a. New Books sold merchandise...
Required information [The following information applies to the questions displayed below.] The transactions listed below are typical of those involving New Books Inc. and Readers' Corner. New Books is a wholesale merchandiser and Readers' Corner is a retail merchandiser. Assume all sales of merchandise from New Books to Readers' Corner are made with terms n/30, and the two companies use perpetual inventory systems. Assume the following transactions between the two companies occurred in the order listed during the year ended...
Required information [The following information applies to the questions displayed below.] The transactions listed below are typical of those involving New Books Inc. and Readers' Corner. New Books is a wholesale merchandiser and Readers' Corner is a retail merchandiser. Assume all sales of merchandise from New Books to Readers' Corner are made with terms n/30, and the two companies use perpetual inventory systems. Assume the following transactions between the two companies occurred in the order listed during the year ended...
The transactions listed below are typical of those involving New Books Inc. and Readers' Corner. New Books is a wholesale merchandiser and Readers' Corner is a retall merchandiser. Assume all sales of merchandise from New Books to Readers' Corner are made with terms n / 30, and the two companies use perpetual inventory systems. Assume the following transactions between the two companies occurred in the order listed during the year ended August 31 .a. New Books sold merchandise to Readers'...
Return Required Information (The following information applies to the questions displayed below.) The transactions listed below are typical of those involving New Books Inc. and Readers' Corner. New Books is a wholesale merchandiser and Readers' Corner is a retail merchandiser. Assume all sales of merchandise from New Books to Readers' Corner are made with terms n/30, and the two companies use perpetual inventory systems. Assume the following transactions between the two companies occurred in the order listed during the year...
Required information [The following information applies to the questions displayed below.] The transactions listed below are typical of those involving New Books Inc. and Readers' Corner. New Books is a wholesale merchandiser and Readers' Corner is a retail merchandiser. Assume all sales of merchandise from New Books to Readers' Corner are made with terms n/30, and the two companies use perpetual inventory systems. Assume the following transactions between the two companies occurred in the order listed during the year ended...
The transactions listed below are typical of those involving Southern Sporting Goods (SSG) and Sports R Us (SRU). SSG is a wholesale merchandiser and SRU is a retail merchandiser. Assume all sales of merchandise from SSG to SRU are made with terms n / 30, and the two companies use perpetual inventory systems. Assume the following transactions between the two companies occurred in the order listed during the year ended December 31 .a. SSG sold merchandise to SRU at a...
mework i Saved Help Save & Exit Check my Required Information [The following information applies to the questions displayed below.] The transactions listed below are typical of those involving New Books Inc. and Readers' Corner. New Books is a wholesale merchandiser and Readers' Corner is a retail merchandiser. Assume all sales of merchandise from New Books to Readers' Corner are made with terms n/30, and the two companies use perpetual inventory systems. Assume the following transactions between the two companies...
quired information he following information applies to the questions displayed below he transactions listed below are typical of those involving Amalgamated Textiles and American Fashions. Amalgamated a wholesale merchandiser and American Fashions is a retail merchandiser. Assume all sales of merchandise from malgamated to American Fashions are made with terms n/60, and the two companies use perpetual inventory systems ssume the following transactions between the two companies occurred in the order listed during the year ended December 31 a. Amalgamated...
2. (18 points) Petersen Book Store entered into the transactions listed below. In the journal provided, prepare Petersen's necessary entries, assuming use of the perpetual inventory system. Sept 2 Purchased $2,800 of merchandise on credit, terms 130. 5 Returned $400 of the items purchased on Sept 6. 6 Paid freight charges of $90 on the items purchased Sept 2. 19 Sold merchandise on credit for $4,500, terms 2/10, 1/30. The merchandise had an inventory cost of $1,900. (Two entries needed)....