chapter 5 key

chapter 5 key - Chapter 5 Exercise 5-1 (30 minutes) Apr. 2...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 5 Exercise 5-1 (30 minutes) Apr. 2 Merchandise Inventory. ..................................... 4,600 Accounts Payable—Lyon. ......................... 4,600 Purchased merchandise on credit. 3 Merchandise Inventory. ..................................... 300 Cash. ............................................................ 300 Paid shipping charges on purchased merchandise. 4 Accounts Payable—Lyon. ................................. 600 Merchandise Inventory. ............................. 600 Returned unacceptable merchandise. 17 Accounts Payable—Lyon. ................................. 4,000 Merchandise Inventory*. ............................ 80 Cash. ............................................................ 3,920 *[($4,600 - $600) x 2%] Paid balance (less 2%) within discount period. 18 Merchandise Inventory . .................................... 8,500 Accounts Payable—Frist. .......................... 8,500 Purchased merchandise on credit. 21 Accounts Payable—Frist. ................................. 1,100 Merchandise Inventory . ............................ 1,100 Received an allowance on purchase. 28 Accounts Payable—Frist. ................................. 7,400 Merchandise Inventory*. ............................ 148 Cash. ............................................................ 7,252 *[($8,500 - $1,100) x 2%] Paid balance (less 2%) within discount period.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Exercise 5-2 (30 minutes) 1. BUYER- Santa Fe Company Credit Purchase Merchandise Inventory. ................................... 24,000 Accounts Payable. .................................... 24,000 Purchased merchandise on credit. Cash Payment Accounts Payable. ............................................ 24,000 Merchandise Inventory*. ........................... 720 Cash. .......................................................... 23,280 *[24,000 x 3%] Paid account payable within 3% discount period. 2. SELLER – Mesa Company Credit Sale Accounts Receivable. ...................................... 24,000 Sales. .......................................................... 24,000 Sold merchandise on account. Cost of Goods Sold . ........................................ 16,000 Merchandise Inventory . ........................... 16,000 To record cost of sale. Cash Collection Cash. .................................................................. 23,280 Sales Discounts. ............................................... 720 Accounts Receivable. ............................... 24,000 Collected account receivable. 3. Amount borrowed to pay with discount. ....................... $ 23,280 Annual rate of interest . ................................................... x 8% Interest per year. .............................................................. $1,862.40
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 07/11/2011 for the course ECON 101 taught by Professor D during the Fall '11 term at Troy Dothan.

Page1 / 15

chapter 5 key - Chapter 5 Exercise 5-1 (30 minutes) Apr. 2...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online