On April 7, Shields Co sold inventory in exchange for a gift card worth $7,600. The inventory originally cost Shields Co $4,000 to purchase On April 21, the customer returned half of what was purchased on April 7 and was refunded with store credit on the original gift card. There were no additional costs involved i in the return, and the product was returned in sellable condition. What journal entry should Shields Co record April 21, i.e.. on the return.date"

On April 7, Shields Co sold inventory in exchange for a gift card worth $7,600. The inventory originally cost Shields Co $4,000 to purchase On April 21, the customer returned half of what was purchased on April 7 and was refunded with store credit on the original gift card. There were no additional costs involved i in the return, and the product was returned in sellable condition. What journal entry should Shields Co record April 21, i.e.. on the return.date"

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Consider the following transactions for BigGuy Toys: Apr. 7 BigGuy Toys purchased $198,800 worth of MegoBlock toys on account with credit terms of 2/10, n/60. Apr. 13 BigGuy Toys returned $19,800 of the merchandise to MegoBlock due to damage during shipment. Apr. 15 BigGuy Toys paid the amount due, less the return and discount. Requirements 1. Journalize the purchase transactions. Explanations are not required. 2. In the final analysis, how much did the inventory cost BigGuy Toys? Requirement 1. Journalize the purchase transactions. Explanations are not required. (Assume the company uses a perpetual inventory system. Record debits first, then credits. Exclude explanations from journal entries.) Apr. 7: BigGuy Toys purchased $198,800 worth of MegoBlock toys on account with credit terms of 2/10, n/60. Date Accounts Debit Credit Apr. 7…