ezto.mheducation.com Assignment Results .10/100 Points 8510% Question 2 (of 5) A

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ezto.mheducation.com Assignment Results .10/100 Points 8510% Question 2 (of 5) Award: 6.90 out of 20.00 points Exercise 4-3 Analyzing and recording merchandise transactions-both buyer and seller LO P1, P2 Santa Fe Company purchased merchandise for resale from Mesa Company with an invoice price of $24,000 and credit terms of 3/10, n/60. The merchandise had cost Mesa $16,000. Santa Fe paid within the discount period. Assume that both buyer and seller use a perpetual inventory system 1(a) Prepare entries that the buyer should record for the purchase No Event Debit 24,000 Accounts payable Cash 720 23 280 1(b) Prepare entries that the buyer should record for the cash payment nt General Journal Debit Credit Accounts payable 24,000 Merchandise inventory 24,000 2(a) Prepare entries that the seller should record for the sale

Explanation / Answer

Exercise 4-3.

3.

4-14.

4-1A.

1(a) Entry to record purchase by the buyer No. Event Account Title Debit Credit 1 1 Merchandise Inventory 24000 Accounts Payable 24000 1(b) Entry to record cash payment by the buryer No. Event Account Title Debit Credit 1 1 Accounts Payable 24000 Merchandise Inventory 720 Cash 23280 2(a) Entry to record sale by the seller No. Event Account Title Debit Credit 1 1 Accounts Receivable 24000 Sales 24000 (Salel of inventory on account) 2 Cost of goods sold 16000 Merchandise Inventory 16000 (Cost of the goods sold) 2(b) Entry to record cash payment received by the seller No. Event Account Title Debit Credit 1 1 Cash 23280 Sales Discount 720 Accounts Receivable 24000

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