Chapter 6 Merchandising Activities Golf World sold merchandise to Mulligans for

Question

Chapter 6 Merchandising Activities Golf World sold merchandise to Mulligans for $10,000, offering terms of 1/15, n/30. Mulligans a. Prepare journal entries in the accounting records of Golf World to account for this sale and the 274 OG EXERCISE 6.10 paid for the merchandise within the discount period. Both companies use systems. Cash Dis counts subsequent collection. Assume the original cost of the merchandise to Golf World had been $6.500 subsequent payment. Mulligans records purchases of merchandise at net cost. c. Assume that, because of a change in personnel, Mulligans failed to pay for this merchandise within the discount period. Prepare the journal entry in the accounting records of Mulligans to record payment after the discount period.

Explanation / Answer

In the books of Golf world Date General Journal Debit Credit a Accounts Receivable - Mulligans $        10,000 Sales $        10,000 Cost of goods sold $          6,500 Inventory $          6,500 Cash $          9,900 sales discount $              100 Accounts Receivable - Mulligans $        10,000 In the books of Mulligan Date General Journal Debit Credit b Inventory $          9,900 Accounts payable - Golf world $          9,900 Accounts payable - Golf world $          9,900 Cash $          9,900 c Accounts payable - Golf world $          9,900 Purchase discount lost $              100 Cash $        10,000

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

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