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Page 4 of 11 http://ezto.mhhm.mcgraw-hill.com/hm_accounting.tpx?todo=printview 3. award: 1 out of 1 point Mechanic Parts was organized on May 1, 2009, and made its first purchase of merchandise on May 3. The purchase was for 1,200 units at a price of $7 per unit. On May 5, Mechanic Parts sold 720 units for $11 per unit to Radica Co. Terms of the sale were 2/10, n/60. Prepare entries for Mechanic Parts to record the May 5 sale and each of the following separate transactions a through c using a perpetual inventory system. (Omit the "$" sign in your response.) Date General Journal Debit Credit May 5 Accounts Receivable 7,920 Sales 7,920 May 5 Cost of Goods Sold 5,040 Merchandise Inventory 5,040 (a) On May 7, Radica returns 251 units because they did not fit the customer's needs. Mechanic Parts restores the units to its inventory. Date General Journal Debit Credit May 7 Sales Returns and Allowances 2,761 Accounts Receivable 2,761 May 7 Merchandise Inventory 1,757 Cost of Goods Sold 1,757 (b)
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This note was uploaded on 08/09/2010 for the course ACCT 1 taught by Professor Ludwig during the Spring '10 term at Los Angeles City College.
- Spring '10