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Compute the amount of the receivable for Sweet Dreams Company

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Sweet Dreams Company, a retailer of beds and mattresses, engaged in the following transactions during September:

Sept.
4 Purchased inventory for cash, $14,000.
6 Purchased store supplies on credit from C. Paper, terms of n/30, $660.
9 Purchased inventory of $5,500 plus shipping charges of $200 from R.U. Sleepy; credit terms are 2/15, n/60, FOB shipping point.
10 Sold goods for cash, $2,800; Sweet Dreams' cost of these goods was $1,820.
12 After negotiations with R.U. Sleepy, Sweet Dreams received $1,500 allowance on the inventory purchased on September 9 because the mattress tops were stained.
14 Purchased $4,560 of inventory on credit from T. Sandman, terms of 2/10, n/45, FOB destination.
15 Sold $8,400 of inventory on credit to S.L. Beauty under terms of 3.10,n/30, FOB shipping point. The goods had a cost of $5,460.
16 Paid advertising expense of $250
18 S.L. Beauty returned $1,600 of merchandise from the September 15 sale because Sweet Dreams had shipped incorrect merchandise; the original cost of the merchandise returned was $1,040.
22 Paid R.U. Sleepy for goods purchased on September 9 less the allowance and the discount.
25 After agreeing to allow a discount on a partial payment, Sweet Dreams received payment of $3,000 from S.L. Beauty for the sale on September 15, less the discount.
19 Paid for the store supplies purchased on September 6.

Requirements:
*Please see attachment
1. Journalize the proceeding transactions for Sweet Dreams Company.
2. Compute the amount of the receivable on September 30 from S.L. Beauty to whom Sweet Dreams sold merchandise on Sept. 15.

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Solution Summary

The amount of the receivables for Sweet Dreams Company is computed.

Solution provided by:
Radhika Lakshmi, MPhil
Education
  • MPhil, Madurai Kamaraj University
  • MCom, Annamalai University
  • IATA, International Air Transport Association
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