C ezto mheducat tion.com/hm.tpx CP6-3 Recording Cash Sales, Credit Sales, Sales
ID: 2554785 • Letter: C
Question
C ezto mheducat tion.com/hm.tpx CP6-3 Recording Cash Sales, Credit Sales, Sales Discounts, Sales Returns, and Sales Allowances and Analyzing Gross Proft Percentage [LO 6-4, LO 6-5 IThe following information applies to the questions displayed below] Campus Stop, Inc., Is a student co-op. Campus Stop uses a perpetual inventory system. The tollowing summarized) have been selected for analysis (cost of merchandise $151.550) b. Received merchandise returned by cu as unsatisfactory (but in perfect condition) refund (original cost of merchandise $790). 1740 19,000 9,310 c. Soid (costing $8.550] to a customer on account with terms 2/10, n/30 haif of the balance owed by the customer in (c) within the di t period. Sales 12 1.00 points CP6-3 Part 3Explanation / Answer
(A)
Cash A/c Dr $ 2,73,300
To Sales A/c Cr $ 2,73,300
(Cash Sales)
Cost of Merchandise Sold A/c Dr $ 1,51,550
To Merchandise Inventory A/c Cr $ 1,51,550
(Recording cost of goods sold)
(B)
Sales Returns & Allowances A/c Dr $ 1740
To Cash A/c Cr $ 1740
(to record the return and refund customer's payment)
Merchandise Inventory A/c Dr $ 790
To Cost of Merchandise Sold A/c Cr $ 790
(to return the returned shipment to inventory)
(C)
Accounts Receivable A/c Dr $ 18620
To Sales A/c Cr $ 18620
(Credit Sales)
Cost of Merchandise Sold A/c Dr $ 8550
To Merchandise Inventory A/c Cr $ 8550
(Recording cost of goods sold)
(D)
Cash A/c Dr $ 9310
To Accounts Receivable A/c Cr $ 9310
(Collection of half of the balance owed)
(E)
Sales Discount A/c Dr $ 1780
To Accounts Receivable Cr $ 1780
(Granted sales discount of $ 1780)
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