HELP!! I tried debiting A/R and crediting cash, as well as debiting Merchandise
ID: 2514430 • Letter: H
Question
HELP!! I tried debiting A/R and crediting cash, as well as debiting Merchandise Inventory and crediting cash but they don't work? any other suggestions...
June 28
To fill a ski club special order, Granite Bay Jet Ski purchased, on credit, four additional personal watercraft trailers from Starlight Sports. The invoice list price is $2,000.00 each for the trailers. Credit terms of 1/10, n/30 are offered by Starlight Sports and the total net purchase price (invoice S3488) is $7,920. This order has been shipped FOB destination.
Merchandise listed on the sales invoice:
Item STARLIGHT QUAD
Quantity 4
Stock Number AL900
Net cost per unit $_______
Calculate the net cost per unit and compare your answer to the amount listed by the program when the inventory data is entered
Explanation / Answer
Answer
Quantity 4 x $2000 each = $8,000
(-) 1 % discount (8000x1%) = $80
Net Invoice Value = 8000 – 80 = $7,920 for 4 quantities.
Inventory a/c debited by $7,920, and
Accounts payable a/c credited by $7,920
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