Assignment:
Markup on all sales is 25%. For example, a retail price of $100.00 means the wholesale price is $80.00 ($80.00x 1 .25 = $100.00). Purchases are recorded at net price For example, a purchase of a $1,000.00 item on terms of 2/10, net 30 is booked at $980.00.
December 29 (Monday)
1.) Sold merchandise to the following customers .
| Customer's Name Terms Amount |
| Rose Harper cash $400 .00 |
| Carol Jason n/30 600.00 |
2.) Purchased merchandise for resale from the following :
| Creditor's Name Terms Amount |
| Melody Hit cash $2,000.00 |
| Tusk Music Supply 2/10, n/30 1,400.00 |
3.) Received payment from the following customers . The amounts shown do not include any discount. You must determine if a discount is appropriate, and if so how much. Madison Music Store awards partial discounts for payments on account . TI'ie Sales Amount Column indicates the "sales amount obligation" discharged with the payment of a receivable . It does not refer to a specific sale. For example, if the column shows $100.00, the correct entry would be to debit cash for $105 .00 and credit accounts receivable for $105 .00 (assuming a sales tax at 5%) .
| Customer's Name Terms SalesAmount |
| Audio Court n/30 $900.00 |
| Bill Hanlon n/30 100.00 |
4.) Paid the following creditors . The discount, if appropriate, must be calculated. Madison Music Store's creditors grant discounts on partial payments made within ii he discount period.
| Creditor's Name Terms Amount |
| Jazz Instruments 2/10,n/30 $614 .00 |
| Charlotte Office Supply n/30 500.00 |
5.) Paid $ 100.00 freight on December 26 order from Tusk Music Supply. All purchases are F.O .B. shipping point.
6.) Bose Music Store informed Mr . Madison that the purchase made by Madison Music on December 19 should have been billed at $ 4,310 .00 . This should be corrected in Madison Music Store's books .