Horngren's Accounting (12th Edition)
12th Edition
ISBN: 9780134486444
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 9, Problem E9.16E
Recording credit sales and collections
| Learning Objective 1 3. $695 |
Steller Company had the following transactions in June:
| Jun. 1 6 12 20 22 28 |
Sold merchandise inventory on account to Carter Company. $1,575. Sold merchandise inventory for cash, $550. Received cash from Carter Company in full settlement of its Sold merchandise inventory on account to Iris Company. $765. Sold merchandise inventory on account to Driver Company. $230. Received cash from Iris Company in partial settlement of its accounts receivable, $300. |
Requirements
1. Journalize the transactions. Ignore Cost of Goods Sold. Omit explanations.
2. Post the transactions to the general ledger and the accounts receivable subsidiary ledger. Assume all beginning balances are SO.
3. Verify the ending balance in the control Accounts Receivable equals the sum of the balances in the subsidiary ledger.
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Purchases Transactions
Barans Company purchased merchandise on account from a supplier for $9,200, terms 2/10, n/30. Barans Company returned $1,700
of the merchandise and received full credit.
a. If Barans Company pays the invoice within the discount period, what is the amount of cash required for the payment?
b. What account is credited by Barans Company to record the return?
Merchandise Inventory
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(a) The return of merchandise reduces the original invoice amount to be paid. The discount is taken on the amount owed on
the merchandise after the return.
(b) Any discounts or returns are recorded directly by the buyer who reduces the balances of Accounts Payable and Merchandise
Inventory, using a debit memo based on the net cost of the merchandise.
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Enter the following transactions in the appropriate journal (purchases journal and cash payment journal)
*October 11 Purchased merchandise from Lafferty Company, $500 on account, credit terms 1/15, n/45. Invoice No. 65.
*15 Purchased merchandise from Alsted, Inc., $400 cash. Check No. 751.
* 21 Paid amount due Lafferty Company, less discount. Check No. 752.
Chapter 9 Solutions
Horngren's Accounting (12th Edition)
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