Question - Sales-related transactions
Summit Co., a furniture wholesaler, sells merchandise to Bitone Co. on account, $30,300, terms 2/10, n/30. The cost of merchandise sold is $18,200. Summit Co. issues a credit memo for $5,200 for merchandise returned and subsequently receives the amount due within the discount period. The cost of the merchandise returned is $3,100.
Journalize Summit Co.'s entries.
a. The sale: The cost of the merchandise sold:
b. The credit memorandum: The cost of merchandise returned:
c. The receipt of the check for the amount due from Bitone Co. If a box does not require an entry, leave it blank.
Question - Purchase-related transactions
Versailles Co., a women's clothing store, purchased $17,000 of merchandise from a supplier on account, terms FOB destination, 2/10, n/30. Versailles Co. returned $2,400 of the merchandise, receiving acredit memo, and then paid the amount due within the discount period.
a. Journalize Versailles Co.'s entry to record the purchase.
b. Journalize Versailles Co.'s entry to record the merchandise return.
c. Journalize Versailles Co.'s entry to record the payment. If a box does not require an entry, leave it blank.
Question - Entry for cash sales; cash short
The actual cash received from cash sales was $31,025, and the amount indicated by the cash register total was $31,060.
Journalize the entry to record the cash receipts and cash sales.