Event 8 Junes Plant Shop returned some of the inventory purchased in Event 7

Event 8 junes plant shop returned some of the

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Event 8: June’s Plant Shop returned some of the inventory purchased in Event 7. The list price of the returned merchandise was $1,000. Event 9: June’s Plant Shop received a cash discount on goods purchased in Event 2. The credit terms were 2/10, n/30. If payment is made within the discount period, a reduction is given. If payment is not made within the discount period, the full amount of the invoice is due. 2/10; n/30 The first number represents the discount percentage. The second number represents the discount period. The letter “n” stands for the word net. The last number represents the entire credit period. Event 10: The shipping terms for the inventory purchased in Event 2 were F O B shipping point. June’s Plant Shop paid the freight company $300 for delivering the merchandise. Event 11a: June’s Plant Shop recognized $24,750 of revenue on the cash sale of merchandise that cost $11,500. First, let’s record the retail portion of the sale. Event 11b: June’s Plant Shop recognized $11,500 of cost of goods sold.
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Event 12: JPS paid $450 cash for freight costs on inventory delivered to customers.
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  • Spring '14
  • Revenue, Generally Accepted Accounting Principles, gross margin, JPS, Plant Shop

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