KThe provided documents describe two business transactions.i (Click the icon to view the invoice.) i (Click the icon to view the debit memo.)Eduardo's Bicycle Shop paid the balance due on March 21.Both Eduardo's Bicycle Shop and Scherier Company use a perpetual inventory system.Scherier Company's cost of the bicycles sold to Eduardo's Bicycle Shop was $1,428. Scherier Company's cost of the returned merchandise was $337.RequiredRequirement 1. Record these transactions and Eduardo's cash payment on March 21 in the books of Eduardo's Bicycle Shop. (Record debits first, then credits. No explanations are required.Round amounts to the nearest whole dollar.)March 14: Eduardo's Bicycle Shop purchases bicycles from Scherier Company.DateMar.14Journal EntryAccountsDebitCredit

The objective of the question is to record the transactions of Eduardo's Bicycle Shop in the books…

Answered: K The provided documents describe two…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, $254,500, terms n/30. The cost of the merchandise sold is $152,700. Showcase Co. issues a credit memo for $30,000 for merchandise returned prior to Balboa Co. paying the original invoice. The cost of the merchandise returned is $17,500.
On April 5, a customer returns 25 bicycles with a sales price of $300 per bike to Barrio Bikes. Each bike cost Barrio Bikes $120. The customer had yet to pay on their account. The bikes are in sellable condition. Assume the perpetual and periodic methods are used. A. Prepare the journal entries to recognize this return if the company uses the perpetual inventory system. If an amount box does not require an entry, leave it blank.
Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, $55,000, terms n/30. The cost of the goods sold is $33,000. Showcase issues a credit memo for $11,000 for merchandise returned prior to Balboa paying the original invoice. The cost of the merchandise returned is $6,600. c. Journalize Showcase Co.'s entry for the receipt of the check for the amount due from Balboa Co.
On March 1, Bates Board Shop sells 300 surfboards to a local lifeguard station at a sales price of $480 per board. The cost to Bates is $150 per board. The terms of the sale are 3/15, n/30, with an invoice date of March 1. Create the journal entries for Bates to recognize the following transactions. Assume the perpetual inventory system is used. A. the initial sale B. the subsequent customer payment on March 10 If an amount box does not require an entry, leave it blank.
On March 1, Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, $254,500, terms n/30. The cost of the merchandise sold is $152,700. Showcase Co. issues a credit memo on March 5 for $30,000 for merchandise returned prior to Balboa Co. paying the original invoice on March 29. The cost of the merchandise returned is $17,500. Journalize Showcase Co.’s entries for (a) the sale, including the cost of the merchandise sold, (b) the credit memo, including the cost of the returned merchandise, and (c) the receipt of the check for the amount due from Balboa Co. Refer to the Chart of Accounts for exact wording of account titles.
Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, $254,500, terms n/30. The cost of the merchandise sold is $152,700. Showcase Co. issues a credit memo for $30,000 for merchandise returned prior to Balboa Co. paying the original invoice. The cost of the merchandise returned is $17,500. Journalize Showcase Co.’s entries for (a) the sale, including the cost of the merchandise sold; (b) the credit memo, including the cost of the returned merchandise; and (c) the receipt of the check for the amount due from Balboa Co.
On March 1, Bates Board Shop sells 290 surfboards to a local lifeguard station at a sales price of $420 per board. The cost to Bates is $140 per board. The terms of the sale are 3/15, n/30, with an invoice date of March 1. Create the journal entries for Bates to recognize the following transactions. Assume the perpetual inventory system is used. A. the initial sale B. the subsequent customer payment on March 10 If an amount box does not require an entry, leave it blank. Mar. 1 Mar. 1 Mar. 10 Accounts Receivable Accounts Payable Cash Sales Discounts Sales II II III II II III
On March 1, Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, $252,510, terms n/30. The cost of the merchandise sold is $141,390. On March 5, Showcase Co. issues a credit memo for $30,380 for merchandise returned prior to Balboa Co. paying the original invoice on March 29. The cost of the merchandise returned is $18,740. Journalize Balboa Co.’s entries for (a) the purchase, (b) the return of the merchandise for credit, and (c) the payment of the invoice. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTSBalboa Co.General Ledger ASSETS 110 Cash 120 Accounts Receivable 125 Notes Receivable 130 Merchandise Inventory 131 Estimated Returns Inventory 140 Office Supplies 141 Store Supplies 142 Prepaid Insurance 180 Land 192 Store Equipment 193 Accumulated Depreciation-Store Equipment 194 Office Equipment 195 Accumulated Depreciation-Office Equipment LIABILITIES 211 Accounts…
On May 10, Blossom Company sold merchandise for $4,500 and accepted the customer's Best Business Bank MasterCard. At the end of the day, the Best Business Bank MasterCard receipts were deposited in the company's bank account. Best Business Bank charges a 3.4% service charge for credit card sales. Prepare the entry on Blossom Company's books to record the sale of merchandise. (Omit cost of goods sold entries.) (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts.) Date Account Titles and Explanation May 10 Accounts Receivable Sales Revenue Service Charge Expense eTextbook and Media: Debit 4500 I Credit 4500
Review the following transactions. A. On April 7, Tolbert Enterprises contracts with a supplier to purchase 330 water bottles for their merchandise inventory, on credit, for $14 each. Credit terms are 2/10, n/60 from the invoice date of April 7. B. On April 15, Tolbert pays the amount due in cash to the supplier. Prepare any necessary journal entries for Tolbert Enterprises. If an amount box does not require an entry, leave it blank. Apr. 7 Apr. 15
Panasonic Inc is an office supply store selling computers. The company uses a perpetual inventory system. a.) Record the following transactions in the company's general journal, include the written explanations accompany the entries. June 1 Purchased 40 units of computers on account from Good Corp. with invoice price of $4,000 each, terms of 3/15, n/30. Return 3 faulty unit of computer to Good Corporation. Sold 7 units of computers to Adventure. The sales price was $8,000, terms 2/10, n/30. Good Corporation received full payment from Panasonic Inc. Adventure paid a check in full settlement. 3 12 14 19 b.) Explain the effect on operating income and ending inventory values if a firm uses LIFO instead of FIFO in times of rising prices.
Mathis Company and Reece Company use the periodic system. The following transactions occurred during the month of April: On April 1, Mathis purchased merchandise on account from Reece with credit terms of 2/10, n/30. The selling price of the merchandise was $3,100, and the cost of the merchandise sold was $2,225. On April 1, Mathis paid freight charges of $250 cash to have the goods delivered to its warehouse. On April 8, Mathis returned $800 of the merchandise which had originally cost Reece $500. On April 10, Mathis paid Reece the balance due. Required: Hide 1. Prepare the journal entry to record the April 1 purchase of merchandise and payment of freight by Mathis. April 1 (Purchased inventory on account) April 1…

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