Review each transaction below and indicate whether you agree or disagree with how the bookkeeper accounted for thetransaction.June 10111220July 151517A purchase of $3,700 of merchandise from Dan Dan Distributors was debited to Purchases andcredited to Cash. The terms of the purchase were 2/10, n/30, FOB shipping point.The invoice for freight in the amount of $215 for the delivery of merchandise purchased fromDanDan was paid and was debited to Delivery Expense.Damaged goods totalling $100 were returned to Dan Dan Distributors for credit. Thebookkeeper recorded a debit to Accounts Receivable and a credit to Sales Returns andAllowances.A payment was made to DanDan Distributors for the June 10 purchase. The payment was adebit to Purchases and a credit to Cash.Sandhill sold goods for $9,225; Sales was credited and Cost of Goods Sold was debited for thisamount. The cost of the inventory sold was $3,600. The terms of the sale were 1/15, n/30, FOBdestination.Freight charges on the above transaction were debited to Accounts Receivable and credited toCash for $225. The bookkeeper believed the customer had to pay for the freight charges.Sandhill's manager gave the customer from July 15 a $400 allowance. The entry made torecord the allowance was a debit to Sales and a credit to Sales Returns and Allowances. The following transactions were recorded by an inexperienced bookkeeper during the months of June and July for Sandhill Company.Sandhill Company uses a perpetual inventory system.June 10111220July 151517A purchase of $3,700 of merchandise from DanDan Distributors was debited to Purchases and credited to Cash. Theterms of the purchase were 2/10, n/30, FOB shipping point.The invoice for freight in the amount of $215 for the delivery of merchandise purchased from DanDan was paid andwas debited to Delivery Expense.Damaged goods totalling $100 were returned to DanDan Distributors for credit. The bookkeeper recorded a debit toAccounts Receivable and a credit to Sales Returns and Allowances.A payment was made to DanDan Distributors for the June 10 purchase. The payment was a debit to Purchases and acredit to Cash.Sandhill sold goods for $9,225; Sales was credited and Cost of Goods Sold was debited for this amount. The cost of theinventory sold was $3,600. The terms of the sale were 1/15, n/30, FOB destination.Freight charges on the above transaction were debited to Accounts Receivable and credited to Cash for $225. Thebookkeeper believed the customer had to pay for the freight charges.Sandhill's manager gave the customer from July 15 a $400 allowance. The entry made to record the allowance was adebit to Sales and a credit to Sales Returns and Allowances.

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Description: Review each transaction below and indicate whether you agree or disagree with how the bookkeeper accounted for thetransaction.June 10111220July 151517A purchase of $3,700 of merchandise from Dan Dan Distributors was debited to Purchases andcredited

Journal entry is an art of recording, summarizing and classifying the business transactions into…

Business

Accounting

Review each transaction below and indicate whether you agree or disagree with how the bookkeeper accounted for the transaction. June 10 11 12 A purchase of $3,700 of merchandise from Dan Dan Distributors was debited to Purchases and credited to Cash. The terms of the purchase were 2/10, n/30, FOB shipping point. The invoice for freight in the amount of $215 for the delivery of merchandise purchased from DanDan was paid and was debited to Delivery Expense. Damaged goods totalling $100 were returned to Dan Dan Distributors for credit. The bookkeeper recorded a debit to Accounts Receivable and a credit to Sales Returns and Allowances. 10 V

Review each transaction below and indicate whether you agree or disagree with how the bookkeeper accounted for the transaction. June 10 11 12 A purchase of $3,700 of merchandise from Dan Dan Distributors was debited to Purchases and credited to Cash. The terms of the purchase were 2/10, n/30, FOB shipping point. The invoice for freight in the amount of $215 for the delivery of merchandise purchased from DanDan was paid and was debited to Delivery Expense. Damaged goods totalling $100 were returned to Dan Dan Distributors for credit. The bookkeeper recorded a debit to Accounts Receivable and a credit to Sales Returns and Allowances. 10 V

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter10: Cash Receipts And Cash Payments

Section: Chapter Questions

Problem 5PB: The following transactions were completed by Nelsons Hardware, a retailer, during September. Terms...

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