Revieww Dictiona Calculator Assignments Gradebook Calendar Accounti Journalize t

Question

Revieww Dictiona Calculator Assignments Gradebook Calendar Accounti Journalize the following transactions for the seller, Anderson Company, using the gross method to account for sales discounts. Assume a perpetual inventory system. Make sure to enter the day for each separate transaction. If you do this problem incorrectly 2 more times, we will practice another question. September 6 Sold goods costing $7,800 to Davis Company on account, $13,000, terms 1/10, September 12 Davis Company returned damaged merchandise previously purchased on September 16 Received the amount due from Davis Company. Note The entry to record the shipping payment to the delivery company is not required in this n/30. The goods are sold FOB shipping point, freight prepaid by seller, $50 account, $2,700 problem Date Account Title Debit Credit Type here to search

Explanation / Answer

Sep 6:
Account receivable(db) 13000
Sales(cr) 13000
Cost of goods sold(db) 7800
Merchandise inventory(cr) 7800
Freight out(db) 50
cash(cr) 50
Sep 12:
Sales returns(db) 2700
Account receivable(cr) 2700

Profit margin=(13000-7800)/13000=40%
for 2700 the cost =2700*0.4=1620
Cost of goods sold(db) 1620
Merchandise inventory(cr) 1620

Sep 16:
cash(db)10300
Account receivable(cr) 10300

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