Question

Golf World sold merchandise to Mulligans for $45,000, offering terms of 1/15, n/30. Mulligans paid for...

Golf World sold merchandise to Mulligans for $45,000, offering terms of 1/15, n/30. Mulligans paid for the merchandise within the discount period. Both companies use perpetual inventory systems.

a. Prepare journal entries in the accounting records of Golf World to account for this sale and the subsequent collection. Assume the original cost of the merchandise to Golf World had been $29,250.

b. Prepare journal entries in the accounting records of Mulligans to account for the purchase and subsequent payment. Mulligans records purchases of merchandise at net cost.

c. Assume that, because of a change in personnel, Mulligans failed to pay for this merchandise within the discount period. Prepare the journal entry in the accounting records of Mulligans to record payment after the discount period.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Santa Fe Retailing purchased merchandise “as is” (with no returns) from Mesa Wholesalers with credit terms...
Santa Fe Retailing purchased merchandise “as is” (with no returns) from Mesa Wholesalers with credit terms of 3/10, n/60 and an invoice price of $24,400. The merchandise had cost Mesa $16,641. Assume that both buyer and seller use a perpetual inventory system and the gross method. 1. Prepare entries that the buyer records for the (a) purchase, (b) cash payment within the discount period, and (c) cash payment after the discount period. 2. Prepare entries that the seller records for...
Santa Fe Retailing purchased merchandise “as is” (with no returns) from Mesa Wholesalers with credit terms...
Santa Fe Retailing purchased merchandise “as is” (with no returns) from Mesa Wholesalers with credit terms of 2/10, n/60 and an invoice price of $25,000. The merchandise had cost Mesa $17,050. Assume that both buyer and seller use a perpetual inventory system and the gross method. 1. Prepare entries that the buyer records for the (a) purchase, (b) cash payment within the discount period, and (c) cash payment after the discount period. 2. Prepare entries that the seller records for...
Santa Fe Retailing purchased merchandise “as is” (with no returns) from Mesa Wholesalers with credit terms...
Santa Fe Retailing purchased merchandise “as is” (with no returns) from Mesa Wholesalers with credit terms of 2/10, n/60 and an invoice price of $19,400. The merchandise had cost Mesa $13,231. Assume that both buyer and seller use a perpetual inventory system and the gross method. 1. Prepare entries that the buyer records for the (a) purchase, (b) cash payment within the discount period, and (c) cash payment after the discount period. 2. Prepare entries that the seller records for...
Santa Fe Retailing purchased merchandise “as is” (with no returns) from Mesa Wholesalers with credit terms...
Santa Fe Retailing purchased merchandise “as is” (with no returns) from Mesa Wholesalers with credit terms of 2/10, n/60 and an invoice price of $19,900. The merchandise had cost Mesa $13,572. Assume that both buyer and seller use a periodic inventory system and the gross method. 1. Prepare entries that the buyer should record for (a) the purchase, (b) cash payment within the discount period, and (c) cash payment after the discount period. 2. Prepare entries that the seller should...
Blossom Company purchased merchandise on account from Office Suppliers for $65,000, with terms of 1/10, n/30....
Blossom Company purchased merchandise on account from Office Suppliers for $65,000, with terms of 1/10, n/30. During the discount period, Blossom returned some merchandise and paid $58,311 as payment in full. Blossom uses a perpetual inventory system. Prepare the journal entries that Blossom Company made to record the: (1) purchase of merchandise. (2) return of merchandise. (3) payment on account. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation...
Sampson Co. sold merchandise to Batson Co. on account, $28,400, terms 2/15, net 45 on December...
Sampson Co. sold merchandise to Batson Co. on account, $28,400, terms 2/15, net 45 on December 26. The cost of the goods sold is $21,300. The Batson Co. paid the invoice on December 31, within the discount period. Assume both Sampson and Batson use a perpetual inventory system. Required: Prepare the entries that both Sampson and Batson Companies would record for the above. Refer to the Chart of Accounts for exact wording of account titles. If no entry is required,...
The D-Snap Corporation purchased merchandise during 2017 on credit for $700,000; terms 2/10, n/30. All of...
The D-Snap Corporation purchased merchandise during 2017 on credit for $700,000; terms 2/10, n/30. All of the gross liability except $100,000 was paid within the discount period. The remainder was paid within the 30-day term. At the end of the annual accounting period, December 31, 2017, 90% of the merchandise had been sold and 10% remained in inventory. The company uses a periodic system (a)   Assuming that the net method is used for recording purchases, prepare the entries for the...
On June 30, 2016, the Esquire Company sold some merchandise to a customer for $30,000 and...
On June 30, 2016, the Esquire Company sold some merchandise to a customer for $30,000 and agreed to accept as payment a noninterest-bearing note with an 8% discount rate requiring the payment of $30,000 on March 31, 2017. The 8% rate is appropriate in this situation. Required: 1. Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), the December 31, 2016 interest accrual, and the March...
1. Gore Inc. sold $7,200 of merchandise on account, terms 2/10,n/30. If the customer paid the...
1. Gore Inc. sold $7,200 of merchandise on account, terms 2/10,n/30. If the customer paid the amount owed within the discount period, the entry to record the receipt of cash would include a: debit to cash of $7,200 debit to sales discount of $144 credit to accounts receivable of $144 credit to accounts payable of $7,056       2.   Cost of goods sold:             A) Is another term for sales.             B)   Is the term used for the cost of buying...
Jun    4      Willem Corporation purchased $4,000 worth of merchandise, terms n/30 from Cate Corporation. The cost of...
Jun    4      Willem Corporation purchased $4,000 worth of merchandise, terms n/30 from Cate Corporation. The cost of the merchandise to Cate was $2,600. Returns are estimated at 15%.         10       Willem returned $700 worth of goods to Cate for full credit. The goods had a cost of $450 to Cate and were placed back into inventory.         26       Willem paid the account. Instructions Prepare the journal entries to record these transactions in (a) Willem’s records and (b) Cate’s records. Both companies...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT