Jordache Corp. uses a perpetual inventory system and sells merchandise on account to Polo Limited for $2.000 on February 2, terms n/10, Management expects returns of 10%. The goods cost Jordache $800. On February 5, Polo returns merchandise worth $500 to Jordache. This merchandise costs $300 and is still in saleable condition; therefore, it was put back into inventory, On February 9. Jordache receives payment from Polo for the balance due. Identify the journal entry that Jordache needs to record for the sale of the merchandise on February 2. Accounts Receivable Sales Refund Liability Cash Accounts Receivable 2,000 1,800 1,800 200 1,800

Jordache Corp. uses a perpetual inventory system and sells merchandise on account to Polo Limited for $2.000 on February 2, terms n/10, Management expects returns of 10%. The goods cost Jordache $800. On February 5, Polo returns merchandise worth $500 to Jordache. This merchandise costs $300 and is still in saleable condition; therefore, it was put back into inventory, On February 9. Jordache receives payment from Polo for the balance due. Identify the journal entry that Jordache needs to record for the sale of the merchandise on February 2. Accounts Receivable Sales Refund Liability Cash Accounts Receivable 2,000 1,800 1,800 200 1,800

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 5EA: On April 5, a customer returns 20 bicycles with a sales price of $250 per bike to Barrio Bikes. Each...

See similar textbooks

Similar questions

Smith Company is required to charge customers an 8% sales tax on all goods it sells. At the time of sale, Smith includes the combined amount of both sales and sales tax in the sales account. At the end of May, Smiths sales account for May has a credit balance of 540,000. Prepare the sales tax adjusting journal entry for the end of May.
Blue Barns sold 136 gallons of paint at $31 per gallon on July 6 to a customer with a cost of $19 per gallon to Blue Barns. Terms of the sale are 2/15, n/45, invoice dated July 6. The customer pays their account in full on July 24. On July 28, the customer discovers 17 gallons are the wrong color and returns the paint for a full cash refund. Blue Barns returns the gallons to their inventory at the original cost per gallon. Record the journal entries to recognize these transactions for Blue Barns.
Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc. A. On October 3, Sewing Masters Inc. purchases 800 yards of fabric (Fabric Inventory) at $9.00 per yard from a supplier, on credit. Terms of the purchase are 1/5, n/40 from the invoice date of October 3. B. On October 8, Sewing Masters Inc. purchases 300 more yards of fabric from the same supplier at an increased price of $9.25 per yard, on credit. Terms of the purchase are 5/10, n/20 from the invoice date of October 8. C. On October 18, Sewing Masters pays cash for the amount due to the fabric supplier from the October 8 transaction. D. On October 23, Sewing Masters pays cash for the amount due to the fabric supplier from the October 3 transaction.
On April 5, a customer returns 20 bicycles with a sales price of $250 per bike to Barrio Bikes. Each bike cost Barrio Bikes $100. The customer had yet to pay on their account. The bikes are in sellable condition. Prepare the journal entry or entries to recognize this return if the company uses A. the perpetual inventory system B. the periodic inventory system
Air Compressors Inc. purchases compressor parts for its inventory from a supplier. The following transactions take place during the current year: A. On April 5, the company purchases 400 parts for $8.30 per part, on credit. Terms of the purchase are 4/ 10, n/30, invoice dated April 5. B. On May 5, Air Compressors does not pay the amount due and renegotiates with the supplier. The supplier agrees to $400 cash immediately as partial payment on note payable due, converting the debt owed into a short-term note, with a 7% annual interest rate, payable in three months from May 5. C. On August 5, Air Compressors pays its account in full. Record the journal entries to recognize the initial purchase, the conversion plus cash, and the payment.
Sunrise Flowers sells flowers to a customer on credit for $130 on October 18, with a cost of sale to Sunrise of $50. What entry to recognize this sale is required if Sunrise Flowers uses a perpetual inventory system?
Palisade Creek Co. is a retail business that uses the perpetual inventory system. The account balances for Palisade Creek as of May 1, 20Y6 (unless otherwise indicated), are as follows: During May, the last month of the fiscal year, the following transactions were completed: Record the following transactions on Page 21 of the journal: Instructions 1. Enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section, and place a check mark () in the Posting Reference column. Journalize the transactions for May, starting on Page 20 of the journal. 2. Post the journal to the general ledger, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers. 3. Prepare an unadjusted trial balance. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6). 5. (Optional) Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 22 of the journal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a statement of stockholders equity, and a balance sheet. Assume that additional common stock of 10,000 was issued in January 20Y6. 9. Prepare and post the closing entries. Record the closing entries on Page 23 of the journal. Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. Insert the new balance in the retained earnings account. 10. Prepare a post-closing trial balance.
On March 12, Fret Company sold merchandise in the amount of $9,400 to Babson Company, with credit terms of 3/10, n/30. The cost of the items sold is $5,300. Fret uses the perpetual inventory system and the net method of accounting for sales. On March 15, Babson returns some of the merchandise. The selling price of the returned merchandise is $760 and the cost of the merchandise returned is $430. The entry or entries that Fret must make on March 15 is (are):
On September 12, Fang Company sold merchandise of $5,800 to Brown Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Fang uses the perpetual inventory system and the net method of accounting for sales. On September 14, Brown returns some of the merchandise. The selling price of the merchandise is $500 and the cost of the merchandise returned is $350. Brown pays the invoice on September 18 and takes the appropriate discount. The journal entry that Fang makes on September 18 is: Multiple Choice Account Title Debit Credit Cash 5,800 Accounts Receivable 5,800 Account Title Debit Credit Cash 5,194 Accounts Receivable 5,194 Account Title Debit Credit Cash 5,194 Sales Discounts 106 Accounts Receivable 5,300 Account Title Debit Credit Cash 5,684 Accounts Receivable 5,684 Account Title Debit Credit Cash 5,684 Sales Discounts 116 Accounts Receivable…
The Comet Company, Inc. uses the perpetual inventory system. Their credit terms are 2/10, n/30. They sell one product at a price of $500 and it costs Comet $300. Requirement: Prepare journal entries for the Comet Company, Inc. for the transactions listed below. On May 1, Comet sold 10 items of merchandise inventory to J. Miller on account. On May 2, Comet collected $23,520 cash from customer sales on credit in the prior month, all within the discount period. On May 3, Comet sold 5 items of merchandise to S. Wendell on account. On May 9, Comet receives payment from S. Wendell on the May 3 sale. On May 12, Comet receives payment from J. Miller on the May 1 sale. On May 14, S. Wendell returns one of the items purchased on May 3 for a cash refund because it was defective.
On March 1, Crunk Company sold merchandise in the amount of $5.800 to Wells Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Crunk uses the perpetual inventory system and the gross method. On July 5, Wells returns some of the merchandise. The selling price of the merchandise is $500 and the cost of the merchandise returned is $350. The entry or entries that Crunk must make on July 5 is: 500 Accounts receivable Sales returns and allowances Sales returns and allowances Accounts receivable Accounts receivable Sales returns and allowances: Cost of goods sold Merchandise inventory Sales returns and allowances Accounts receivable Sales returns and allowances Accounts receivable Merchandise inventory Cost of goods sold 350 & B see 350 500 500 350 500 350 500 350 See 500 350
Wellgrow Company purchased merchandise for $5,000, terms 2/10 n/30 on February 19. The supplier paid $200 freight and sent Wellgrow an invoice for the merchandise of $5,000 plus the freight charge of $200. Wellgrow uses the perpetual inventory system. On February 23, Wellgrow returned $700 of the merchandise. On February 26, Wellgrow paid the amount owing. On February 28, Wellgrow sold merchandise to AAA Company for $3,000. Wellgrow's cost was $2,200 Required: Journalize the above transactions.