Question

On February 3, Smart Company sold merchandise in the amount of $5,800 to Truman Company, with...

On February 3, Smart Company sold merchandise in the amount of $5,800 to Truman Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Smart uses the perpetual inventory system and the gross method. Truman pays the invoice on February 18, and takes the appropriate discount. The journal entry that Smart makes on February 18 is:

Multiple Choice

  • Cash 5,800
    Accounts receivable 5,800
  • Cash 4,000
    Accounts receivable 4,000
  • Cash 3,920
    Sales discounts 80
    Accounts receivable 4,000
  • Cash 5,684
    Accounts receivable 5,684
  • Cash 5,684
    Sales discounts 116
    Accounts receivable 5,800
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

If You Have Any Queries Please Do Comment

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
17. On October 1, Robertson Company sold inventory in the amount of $5,800 to Alberta, Inc....
17. On October 1, Robertson Company sold inventory in the amount of $5,800 to Alberta, Inc. with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Robertson uses a periodic inventory system. Alberta pays the invoice on October 8 and takes the appropriate discount. What journal entry will be recorded by Robertson on October 8 if they use the gross method? A) Debit Cash and credit Accounts Receivable for $5,800. B) Debit Cash and credit Accounts...
An adjusting entry that increases a revenue and decreases a liability is known as a(n): Multiple...
An adjusting entry that increases a revenue and decreases a liability is known as a(n): Multiple Choice Accrued expense. Deferred revenue. Accrued revenue. Depreciation. Deferred expense. On March 12, Klein Company sold merchandise in the amount of $7,800 to Babson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,500. Klein uses the perpetual inventory system and the gross method of accounting for sales. Babson pays the invoice on March 17, and takes the appropriate...
Sales Transactions Journalize the following merchandise transactions: a. Sold merchandise on account, $20,700 with terms 1/10,...
Sales Transactions Journalize the following merchandise transactions: a. Sold merchandise on account, $20,700 with terms 1/10, n/30. The cost of the goods sold was $12,420. Sale Accounts Receivable Accounts Payable Accounts Receivable Cash Cost of Merchandise Sold Merchandise Inventory Miscellaneous Expense Purchases Purchases Discounts Purchases Returns and Allowances Sales Discounts Sales Returns and Allowances Sales Sales Accounts Payable Accounts Receivable Cash Cost of Merchandise Sold Purchases Discounts Purchases Returns and Allowances Purchases Sales Sales Discounts Sales Returns and Allowances Cost...
On October 1, Darin Company sold merchandise in the amount of $6,500 to Schnee Company, terms...
On October 1, Darin Company sold merchandise in the amount of $6,500 to Schnee Company, terms 2/10, n/30. The items cost Darin $4,200 and the company uses the perpetual inventory method. On October 4, Schnee returns some of the merchandise. This merchandise had a selling price of $500 and a cost of $200. On October 8, Schnee Company paid Darin Company the correct amount due. 4. What journal entry does Darin Company make on October 8 to record Schnee’s payment?...
On June 3, Sheridan Company sold to Chester Company merchandise having a sale price of $2,200...
On June 3, Sheridan Company sold to Chester Company merchandise having a sale price of $2,200 with terms of 4/10, n/60, f.o.b. shipping point. An invoice totaling $97, terms n/30, was received by Chester on June 8 from John Booth Transport Service for the freight cost. On June 12, the company received a check for the balance due from Chester Company. Prepare journal entries on the Sheridan Company books to record all the events noted above under each of the...
On June 3, Crane Company sold to Chester Company merchandise having a sale price of $3,800...
On June 3, Crane Company sold to Chester Company merchandise having a sale price of $3,800 with terms of 4/10, n/60, f.o.b. shipping point. An invoice totaling $91, terms n/30, was received by Chester on June 8 from John Booth Transport Service for the freight cost. On June 12, the company received a check for the balance due from Chester Company. a) Prepare journal entries on the Crane Company books to record all the events noted above under each of...
On June 3, Swifty Company sold to Chester Company merchandise having a sale price of $5,200...
On June 3, Swifty Company sold to Chester Company merchandise having a sale price of $5,200 with terms of 2/10, n/60, f.o.b. shipping point. An invoice totaling $97, terms n/30, was received by Chester on June 8 from John Booth Transport Service for the freight cost. On June 12, the company received a check for the balance due from Chester Company. Prepare journal entries on the Swifty Company books to record all the events noted above under each of the...
On June 3, Sheffield Company sold to Chester Company merchandise having a sale price of $5,200...
On June 3, Sheffield Company sold to Chester Company merchandise having a sale price of $5,200 with terms of 4/10, n/60, f.o.b. shipping point. An invoice totaling $95, terms n/30, was received by Chester on June 8 from John Booth Transport Service for the freight cost. On June 12, the company received a check for the balance due from Chester Company. (1) Sales and receivables are entered at gross selling price. (2) Sales and receivables are entered at net of...
On May 1, Wilton sold merchandise on account to Bates for $50,000 terms 3/15, net 45....
On May 1, Wilton sold merchandise on account to Bates for $50,000 terms 3/15, net 45. On May 4, Bates returns merchandise with a sales price of $2,000. On May 16, Wilton receives payment from Bates for the balance due. Prepare journal entries to record the May transactions on Wilton’s books. may 1 Accounts Receivable 50,000 Sales Revenue 50,000 4 Sales Returns and Allowances 2,000 Accounts Receivable 2,000 16 Cash ($48,000 - $1,440) 46,560 Sales Discounts ($48,000 x .03) 1,440...
Assume a merchandising company’s estimated sales for January, February, and March are $100,000, $120,000, and $110,000,...
Assume a merchandising company’s estimated sales for January, February, and March are $100,000, $120,000, and $110,000, respectively. Its cost of goods sold is always 40% of its sales. The company always maintains ending merchandise inventory equal to 10% of next month’s cost of goods sold. It pays for 25% of its merchandise purchases in the month of the purchase and the remaining 75% in the subsequent month. What is the accounts payable balance at the end of February? Multiple Choice...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT