C Accounting question |C x M Final Exam Dezto. mheducation.com/hm.tpx thern Spor
ID: 2489124 • Letter: C
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C Accounting question |C x M Final Exam Dezto. mheducation.com/hm.tpx thern Sporting Goods and Sports R Us. The transactions listed below are typical of those involving Southern Sporting Goods is a wholesale merchandiser and Sports R Us is a retail merchandiser. Assume all sales of merchandise from Southern Sporting Goods to Sports R Us are made with terms 3/10, n/30, and that the two companies use perpetual inventory systems. Assume the following transactions between the two companies occurred in the order listed during the year ended December 31 a. Southern Sporting Goods sold merchandise to Sports R Us at a selling price of $190,000. The merchandise had cost Southern Sporting Goods $120,000. b. Two days later, Sports R Us complained to Southern Sporting Goods that some of the merchandise differed from what Sports R Us had ordered. Southern Sporting Goods agreed to give an allowance of $2,000 to Sports R Us. Just three days later Sports R Us paid Southern Sporting Goods, which settled all amounts owed. c. 20. 5.00 points Required Information Required 1. For each of the events (a) through (c), indicate the amount and direction of the effect on Southern Sporting Goods in terms of the following items. (Enter any decreases to account balances with a minus sign.) es Cost of Goods Sold Sales Returns and Allowances Gross Profit Sales ransactRevenue ransaction Discounts Net Sales a. 3 8:30Explanation / Answer
Answer:1
Answer:2 Net sales, cost of goods sold, and gross profit are likely to be reported on Southern Sporting Goods' external financial statements. Sales revenues, sales returns and allowances, and sales discounts will be combined "behind the scenes" to form the net sales number that is to be reported.
Answer:3
Accounts receivable A/C Dr. $190000
To Sales Revenue A/C $190000
COGS A/C Dr. $120000
To Inventory A/C $120000
Sales Return and Allowances A/C Dr. $2000
To Accounts receivable A/C $2000
Cash A/C Dr. $182360 (188000*97%)
Sales Return and allowance A/C Dr. $5640
To Accounts receivable A/C $188000
Transaction Sales Revenue Sales Return and allowances Sales Discount Net sales Cost of goods sold Gross Profit a. 190000 NE NE 190000 120000 70000 b. NE 2000 NE -2000 NE -2000 c. NE NE 5640 -5640 NE -5640Related Questions
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