Chapter_5_Student

Under recording sales of merchandise recording sales

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Unformatted text preview: ding of sales revenues SO under a perpetual inventory system. under Recording Sales of Merchandise Recording Sales of Merchandise Two Journal Entries to Record a Sale #1 #2 Chapter 5-19 Cash or Accounts receivable Sales XXX Cost of goods sold Merchandise inventory XXX XXX XXX Sellin g Price Cost SO 3 Explain the recording of sales revenues SO under a perpetual inventory system. under Recording Sales of Merchandise Recording Sales of Merchandise Recording Sales Returns and Allowances “Flipside” of purchase returns and allowances. Seller uses contra­revenue account Sales Returns and Allowances (debit) to reduces sales. Sales Discount Offered to customers to promote prompt payment. “Flipside” of purchase discount. Seller uses contra­revenue account Sales Discounts (debit). Chapter 5-20 SO 3 Explain the recording of sales revenues under a perpetual inventory system. Recording Sales of Merchandise Recording Sales of Merchandise E5-5 Presented are transactions related to Wheeler Company. 1. On December 3,Wheeler Company sold $500,000 of merchandise to Hashmi Co., terms 2/10, n/30, FOB shipping point. The cost of the merchandise sold was $350,000. 2. On December 8, Hashmi Co. was granted an allowance of $27,000 for merchandise purchased on December 3. 3. On December 13,Wheeler Company received the balance due from Hashmi Co. Instructions: Prepare the journal entries to record these transactions on the books of Wheeler Company using a perpetual inventory system. Chapter 5-21 SO 3 Explain the recording of sales revenues SO under a perpetual inventory system. under Recording Sales of Merchandise Recording Sales of Merchandise E5-5 Prepare the journal entries for Wheeler Company . 1. On December 3, Wheeler Company sold $500,000 of merchandise to Hashmi Co., terms 2/10, n/30, FOB shipping point. Cost of merchandise sold was $350,000. Dec. 3 Chapter 5-22 SO 3 Explain the recording of sales revenues SO under a perpetual inventory system. under Recording Sales of Merchandise Recording Sales of Merchandise E5-5 Prepare the journal entries for Wheeler Company. 2. On December 8, Hashmi Co. was granted an allowance of $27,000 for merchandise purchased on December 3. Dec. 8 Chapter 5-23 SO 3...
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