Recording_Credit_Sales_Transactions_C-5_ - 4 On April 5th,...

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ACCT 100 Spring 2009 Chapter 5 In-class example: Sid's Kayaks Sid is a wholesale business that sells kayaks to in Santa Cruz to sporting goods stores . Sid offers his customers discounts of 2/10 net 30 to prompt early payment from credit customers. The cost of his boars are $1,000 and he charges $1,500 to his customers. The following transactions occurred during the month: 1 Sold 8 kayaks on credit on April 1st to Big 10 Sports 2 Purchased 10 kayaks from the supplier on Apri 3rd on credit. The supplier offers 2/10 net 30 early payment terms. 3 On April 4th, two of the kayaks purchased from the supplier were returned because they had holes in them.
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Unformatted text preview: 4 On April 5th, paid suppliers for kayaks purchased on 4/3. 5 On April 5th, customers returned three kayaks because they didn't intend to order them in the first place. 6 On April 6th, Sid received all amounts owed to him as of April 6th from his customers. **assume the perpetual inventory system Transaction # 1 A/R 12000 COGS 8000 Revenue 12000 Inventory 8000 2 Inventory 10000 A/P 10000 3 A/P 2000 Inventory 2000 4 A/P 8000...
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This note was uploaded on 09/09/2011 for the course ACCT 100 taught by Professor Ftom during the Spring '08 term at S.F. State.

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Recording_Credit_Sales_Transactions_C-5_ - 4 On April 5th,...

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