Question

On March 2, Cullumber Company sold $835,000 of merchandise on account to Bramble Company, terms 2/10, n/30. The cost of the merchandise sold was $585,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Show List of Accounts Show Answer Link to Text Attempts: 3 of 3 used

(b) Your answer is partially correct. Try again. On March 6, Bramble Company returned $83,500 of the merchandise purchased on March 2. The cost of the returned merchandise was $56,800. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Show List of Accounts Show Answer Link to Text Attempts: 3 of 3 used

(c) Your answer is partially correct. Try again. On March 12, Cullumber Company received the balance due from Bramble Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit

Answer 1

Credit Date Accounts tittle Mar-02|Accounts Receivables Sales revenue Debit $835.000 $ 835,000 $585.000 Mar-02 Cost of goods sold Merchandise inventory $ 585,000 $ 83,500 Mar-06 Sales returns and allowances Accounts Receivables $ 83,500 $ 83,500 Mar-06 Merchandise inventory Cost of goods sold $ 83,500 Mar-12 Cash Discount allowed Accounts Receivables $736,470 $ 15,030 Refer working note-1 $ 751,500 Less: working note-1 Sales revenue Sales returns and allowances Net accounts receivables Discount at 2% (Payment made within 10 days; 2/10) $835,000 $ 83,500 $751,500 $ 15,030 751,500*2%