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MakcuM [25]
3 years ago
7

Campus Stop, Inc., is a student co-op. Campus Stop uses a perpetual inventory system. The following transactions (summarized) ha

ve been selected for analysis: a. Sold merchandise for cash (cost of merchandise $141,870). $ 253,000 b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $650). 1,600 c. Sold merchandise (costing $4,500) to a customer on account with terms n/30. 10,000 d. Collected half of the balance owed by the customer in (c). 5,000 e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. 1,600 Prepare journal entries to record transactions (a)–(e). (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Business
1 answer:
tia_tia [17]3 years ago
5 0

Answer:

See explanation section

Explanation:

Requirement A

Cash                     Debit    $253,000

Sales revenue     credit    $253,000

<em>Note: To record the sales on cash with no terms and conditions</em>

Cost of goods sold debit $141,870

Merchandise inventory credit $141,870

<em>Note: As the company uses a perpetual inventory system, the company records the cost of merchandise inventory journals.</em>

Requirement B

Customer refunds payable debit       $1,600

Cash                                          credit      $1,600

<em>Note: Campus Stop, Inc. refunded cash to the customer because of unsatisfactory merchandise.</em>

Merchandise inventory      debit     $650

Estimated returns inventory      credit    $650

<em>Note: As the company uses a perpetual inventory system, the company records the cost of merchandise inventory returned journals.</em>

Requirement C.

Accounts receivable            debit                        $10,000

Sales revenue                      credit                       $10,000

<em>Note: To record the sales on account with no discounting terms but has to receive the payment within 30 days.</em>

Cost of goods sold                debit                       $4,500

Merchandise inventory          credit                      $4,500

<em>Note: As the company uses a perpetual inventory system, the company records the cost of merchandise inventory journals.</em>

Requirement D and E.

D. Cash                         Debit           $5,000

Accounts receivable   Credit          $5,000

<em>Note: Collected half of the balance owed by the customer in transaction c.</em>

E. Cash                             debit        $3,400

Merchandise inventory   debit        $1,600

Accounts receivable       credit        $5,000

<em>Note: Receive the remaining payment from the customer by granting a discount assuming the buyer paid the remaining part earlier than expected.</em>

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Answer:

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Explanation:

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4 0
3 years ago
Riley Company borrowed $36,000 on April 1, Year 1 from the Titan Bank. The note issued by Riley carried a one year term and a 5%
IRINA_888 [86]

Answer:

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= Borrowed amount × interest rate

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7 0
3 years ago
Besides their own team accounts, sales managers at Universal Containers need to have READ access to all accounts of the same seg
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<u>Available Options Are:</u>

A. Create an owner-based sharing rule to grant access to account records that have the same segment to all sales manager roles.

B. Change the role hierarchy and put all of the sales managers in the US and Canada in the same role.

C. Create criteria-based sharing rules to grant access to account records that have the same segment to all sales manager roles.

D. Create a public group and include all accounts of the same segment and grant access through a permission set.

Answer:

Option A. Create an owner-based sharing rule to grant access to account records that have the same segment to all sales manager roles

Explanation:

This owner based sharing will allow the sales manager to access information but he will not be able to alter information which gives a right to access information only. This sharing of information will resolve the sales manager concern and will also him and other sales manager to use this information to make informed decisions. Hence Option A is correct.

Putting in the same role would manipulate the data because the data entered by each sales manager will not be distinguished easily and thus the system will not produce meaningful results. Hence Option B is also incorrect.

Option C is also incorrect because allowing access on meeting certain criteria would result in restriction of data. Thus it is not the solution.

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5 0
3 years ago
In the papyrus corporation, cash receipts from customers were $136,000, cash payments for operating expenses were $102,000, and
sleet_krkn [62]
Cash receipts from customers = $136,000
cash payment for operating expenses = $102,000
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4 0
2 years ago
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Answer:

the price increases

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5 0
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