Record Gardiner's November transactions, including the cost of goods sold entries for each sale. (Use the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Record Gardiner's November transactions, including the cost of goods sold entries for each sale. (Use the gross method to record the sales transactions. Record debits first, then credits. Exclude explanations from any journal entries.) November 3: Sold $400 of merchandise to Martell's Inc., which paid for the items in cash. The items cost Gardiner $50. Do not record the cost of goods sold entry yet. We will do that in the next step. Journal Entry Date Accounts Debit Credit Nov 3 Cash 400 Sales Revenue 400 November 3 Sold $400 of merchandise to Martell's Ic., which paid for the items in cash. The items cost Gardiner $50. November 5 Sold $400 of merchandise to Laster Co., which paid by credit card. The credit card company charges Gardiner a fee of 4% on credit card sales. Gardiner's cost of this merchandise was $85. November 10 Sold $1,600 of merchandise to Walden Ridge on account. Terms were 1/10, net 30. Gardiner's cost of this merchandise was $850. November 11 Sold $1,600 of merchandise to Aberle Shoppes on account. Terms were 1/10, net 30. Gardiner's cost of this merchandise was $720. November 12 Sold $860 of merchandise to Barista Creek Inc., on account. Terms were 1/10, net 30. Gardiner's cost of this merchandise was $344. November 18 Walden Ridge reported that some of the merchandise received was in a different color than ordered so it returned $120 of the merchandise. The cost to Gardiner was $48. November 20 Aberle Shoppes paid the balance of what it owed for the purchase on November 11. November 22 Barista Creek Inc., returned $160 of the merchandise for a refund. Gardiner's cost of the returned merchandise was $64. November 22 Barista Creek Inc., paid the remaining balance owed for the purchase on November 12. November 23 Sold $5,200 of merchandise to Cavern Co. on account. Terms were 1/10, net 30. Gardiner's cost of this merchandise was $2,080. November 25 Walden Ridge paid the balance of what it owed for the purchase on November 10. November 26 Discovered that Ekwall Enterprises, a customer owing $160 from a July transaction, declared bankruptcy and there is no chance of collection. Wrote off the balance of Ekwall's account. November 27 Sold $500 of merchandise to Dallas's One-Stop-Shop on account. Terms were 1/10, net 30. Gardiner's cost of this merchandise was $150. November 1-30 Sales on account during the month of November for transactions not listed individually totaled $7,600. Cost of goods sold for these sales totaled $3,040. November 1-30 Credit card sales on account during the month of November for transactions not listed individually totaled $2,200. The credit card company charges Gardiner a fee of 4% on credit card sales. Cost of goods sold for these sales totaled S880. November 1-30 Cash collections on account during the month of November for transactions not listed individually totaled $4,300. (No discounts were taken by these customers.) November 30 Gardiner made the adjusting entries for the month to accrue for estimated future returns. Gardiner estimates that 3% of total sales will be returned. Gardiner assumes that cost of goods sold is 10% of sales. November 30 Gardiner made an adjusting entry to estimate uncollectible account expense for the month of November. Gardiner estimates its uncollectible-account expense as 4% of total credit (on account) sales for the month. Record Gardiner's November transactions, including the cost of goods sold entries for each sale. (Use the gross method to record the sales transactions. Record debits first, then credits. Exclude explanations from any journal entries.) November 3: Sold $400 of merchandise to Martell's Inc., which paid for the items in cash. The items cost Gardiner $50. Do not record the cost of goods sold entry yet. We will do that in the next step. Journal Entry Date Accounts Debit Credit Nov 3 Cash 400 Sales Revenue 400 November 3 Sold $400 of merchandise to Martell's Ic., which paid for the items in cash. The items cost Gardiner $50. November 5 Sold $400 of merchandise to Laster Co., which paid by credit card. The credit card company charges Gardiner a fee of 4% on credit card sales. Gardiner's cost of this merchandise was $85. November 10 Sold $1,600 of merchandise to Walden Ridge on account. Terms were 1/10, net 30. Gardiner's cost of this merchandise was $850. November 11 Sold $1,600 of merchandise to Aberle Shoppes on account. Terms were 1/10, net 30. Gardiner's cost of this merchandise was $720. November 12 Sold $860 of merchandise to Barista Creek Inc., on account. Terms were 1/10, net 30. Gardiner's cost of this merchandise was $344. November 18 Walden Ridge reported that some of the merchandise received was in a different color than ordered so it returned $120 of the merchandise. The cost to Gardiner was $48. November 20 Aberle Shoppes paid the balance of what it owed for the purchase on November 11. November 22 Barista Creek Inc., returned $160 of the merchandise for a refund. Gardiner's cost of the returned merchandise was $64. November 22 Barista Creek Inc., paid the remaining balance owed for the purchase on November 12. November 23 Sold $5,200 of merchandise to Cavern Co. on account. Terms were 1/10, net 30. Gardiner's cost of this merchandise was $2,080. November 25 Walden Ridge paid the balance of what it owed for the purchase on November 10. November 26 Discovered that Ekwall Enterprises, a customer owing $160 from a July transaction, declared bankruptcy and there is no chance of collection. Wrote off the balance of Ekwall's account. November 27 Sold $500 of merchandise to Dallas's One-Stop-Shop on account. Terms were 1/10, net 30. Gardiner's cost of this merchandise was $150. November 1-30 Sales on account during the month of November for transactions not listed individually totaled $7,600. Cost of goods sold for these sales totaled $3,040. November 1-30 Credit card sales on account during the month of November for transactions not listed individually totaled $2,200. The credit card company charges Gardiner a fee of 4% on credit card sales. Cost of goods sold for these sales totaled S880. November 1-30 Cash collections on account during the month of November for transactions not listed individually totaled $4,300. (No discounts were taken by these customers.) November 30 Gardiner made the adjusting entries for the month to accrue for estimated future returns. Gardiner estimates that 3% of total sales will be returned. Gardiner assumes that cost of goods sold is 10% of sales. November 30 Gardiner made an adjusting entry to estimate uncollectible account expense for the month of November. Gardiner estimates its uncollectible-account expense as 4% of total credit (on account) sales for the month.
Expert Answer:
Answer rating: 100% (QA)
Note Gross method of recording sales usually assumes that customers will not take advantage of cash discount Date Details Debit Credit Nov 3 Cash 400 ... View the full answer
Related Book For
Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
Students also viewed these accounting questions
-
Sales for 2017 were $245,000, and the cost of goods sold was 60 percent of sales Selling and administrative expense was $24,500 Depreciation expense was 8 percent of plant and equipment (gross) at...
-
Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record, using the weighted average cost method. Round unit cost to two decimal places, if necessary. Round all...
-
Suppose you are buying a car of $26000. The dealer offers that you pay a down payment of $4000 now. Then you will pay the balance with equal monthly payments for 42 months with 6% APR compounded...
-
What is the first question to ask when redefining quality goals? What is the purpose of what I am trying to accomplish? What is the right purpose for me to be working on? What quality goals should I...
-
Use the following information to prepare the July cash budget for Acco Co. It should show expected cash receipts and cash disbursements for the month and the cash balance expected on July 31. a....
-
Design an experiment to examine the following question. Is the response to distress calls (moving away from the area) learned in herring gulls? Materials: You will have access to newly hatched,...
-
Denise Oxley and Charles Tatum agreed to liquidate their partnership on May 31 of the current year. On that date, after financial statements were prepared and closing entries were posted, the general...
-
In its first month of operations Rusch BBQ made three purchases of sausages in the following sequence: (1) 300 pounds at $6, (2) 400 pounds at $7, and (3) 200 pounds at $8. Assuming there are 450...
-
im confused by what it means by option cost is $.31 per share and where would the 7.690 come from
-
The following 2 employees are PAID monthly and this is the last payday of the year (Dec). Each employee's taxable part of their wages is listed below. The company is located in Henry County, IN 1....
-
Amounts are in thousands of dollars (except number of shares and price per share): Kiwi Fruit Company Balance Sheet Cash and equivalents $ 380 Operating assets 810 Property, plant, and equipment...
-
When and why should liabilities for each of the following items be recorded on the books of an ordinary business corporation? Purchase of goods on account. Upon recieving the goodsOfficers salaries...
-
A company pays for 6 months of rent in advance. What is the effect on its financial statements? please describe in details.
-
What does the law try to do with respect to employer monitoring of employee behavior in the workplace? Explain.
-
A 4.20-g lead bullet at 34.0C is fired at a speed of 230 m/s into a large block of ice at 0C, in which it becomes embedded. What quantity of ice melts? 0.2725 What are the sources of energy that can...
-
a)According to the company's ACT 2019, Act 992 of Ghana, it is mandatory for every registered company to organise an annual general meeting (AGM). The AGM shall be held not earlier than twenty one...
-
Name: AP Statistics Simulation Worksheet #2 Describe a simulation for the each of following questions. Perform three trials and record your results. 1) A pharmaceutical company knows from previous...
-
What is removed during each of the three stages of wastewater treatment: primary, secondary, and tertiary? During which state would you expect items to be recovered that were accidentally flushed,...
-
Potter Corporation has income from continuing operations of $290,000 for the year ended December 31, 2012. It also has the following items (before considering income taxes). 1. An extraordinary loss...
-
Lumine Company is considering purchasing new equipment for $350,000. The equipment has a 5-year useful life, and depreciation would be $70,000 (assuming straight-line depreciation and zero salvage...
-
(a) Explain the similarities and differences between standards and budgets. (b) Contrast the accounting for standards and budgets.
-
Assuming that money is worth 10%, compute the present value of a. \($7,000\) received 15 years from today. Bing b. The right to inherit \($1,000,000\) 14 years from now. c. The right to receive...
-
For each of the following independent situations, compute the net after-tax cash flow amount by subtracting cash outlays for operating expenses and income taxes from cash revenue. The cash outlay for...
-
Gardner, Inc., plans to finance its expansion by raising the needed investment capital from the following sources in the indicated proportions and respective capital cost rates: Calculate the...
Study smarter with the SolutionInn App