Purchase Solution

Recording Journal Entries for a Seller

Not what you're looking for?

Ask Custom Question

A company sold supplies on October 1. The total amount of the sale was $25,000 and the invoice for the purchase was issued on October 2. The terms of the sale were 2/10, n/30 and the goods were sold f.o.b. shipping point. Shipping costs were $100, the goods were shipped on October 2nd, and the customer received the goods on October 6. The customer records purchases net of discounts.
Instructions:

Record the journal entries for the seller to properly reflect the all of the above events under each of the following assumptions:

1) The seller records sales and receivables at the gross sales price, and
a) The seller received the proper payment in full on October 10.
b) The seller received the proper payment in full on November 5.

2) The seller records sales and receivables at the net of cash discounts, and
a) The seller received the proper payment in full on October 10.
b) The seller received the proper payment in full on November 5.

Purchase this Solution
Solution Summary

This solution provides a detailed, step by step explanation of the given accounting question.

Purchase this Solution
Free BrainMass Quizzes
Operations Management

This quiz tests a student's knowledge about Operations Management

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

View More Free Quizzes
Related BrainMass Solutions

  • Inventory, notes, journal entries

    404570 Inventory, notes, journal entries 1. Candlestick Corporation purchased raw material used for manufacturing candles from a supplier on June 1. The total amount of the purchase was $10,500 of which $3,000 was paid on the day of purchase.

  • Recording Journal Entries (Sysco, formed in 1969)

    . ** See ATTACHED file for complete details ** Journal entries attached ** See ATTACHED file for complete details ** The expert examines recording journal entries for Sysco formed in 1969.

  • Accounting: Multiple choice questions.

    316854 Random Accounting Questions See attached file for clarity. 1. All of the following are true regarding journal entries except: A. Journal entries show the effects of transactions. B. Journal entries provide account balances. C.

  • E10-13 Journal Entries for the Herzogg Company

    This file contains detailed illustrations on the necessary journal entries for the recording of intangible asssets.

  • Important information about The steps in the accounting cycle

    Note that while out-of-balance columns indicate a recording error, balanced columns do not guarantee that there are no errors. For example, not recording a transaction or recording it in the wrong account would not cause an imbalance. 7.

  • Missing Entry for Interest on Notes Receivable

    You are to provide the missing adjusting entry that must have been made, assuming reversing entries are not made. For each journal entry write Dr for debit and Cr for credit.

  • Axe Corporation

    251208 Journal Entries Recording Journal Entries for Purchases and Purchase Discounts Using a Perpetual Inventory System Using the information in E6-8, prepare journal entries to record the transactions, assuming Axe uses a perpetual inventory system

  • Director of Accounting and Executive Director

    Note that while out-of-balance columns indicate a recording error, balanced columns do not guarantee that there are no errors. For example, not recording a transaction or recording it in the wrong account would not cause an imbalance.

  • Journal entries - Receivables

    Instructions: Record the journal entries for the seller to properly reflect the all of the above events under each of the following assumptions: 1) The seller records sales and receivables at the gross sales price, and a) The seller received

View More Related Solutions