Requirements 1. Prepare the journal entries for Redstone Company for the sale of

Question

Requirements 1. Prepare the journal entries for Redstone Company for the sale of the merchandise, the cost of the sale, and the related receipt of payment from Nance Corporation. Assume that Nance Corporation takes the discount if payment is within the discount period. 2. Indicate which company (Redstone or Nance) owns the merchandise at the end of each of the following dates: a. April 3 b. April 4 c. April 10 (Assume that Redstone Company uses the gross method of recording sales discounts.) Print Done

Explanation / Answer

Requirement 1

a. Journal entry to record the sale of merchandise

b. Journal entry to record the cost of the sale

c. Journal entry to record the receipt of payment from Nance Corporation:

Requirement -2

FOB shipping point:

Since the Redstone Company sold goods to Nance Corporation under the FOB shipping point terms and the goods left the Redstone Company's facility on April 4, April 4 would be the day on which the ownership has transferred to the Nance Corporation.

Hope it helps!!!

Please leave a THUMPS UP if U r SATISFIED!!!

Thank U!!!

Date Account titles and narration Debit Credit April 4 Accounts receivable $25,000 Sales revenue $25,000 , [To record the sale on account basis]

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.