Skylers friend Justice works at a Sams Sporting Goods. Justice is a manager and has the authority
Question:
Skyler’s friend Justice works at a Sam’s Sporting Goods. Justice is a manager and has the authority to approve returns and allowances. Justice tells Skyler to purchase a pair of his favorite sneakers and then come back the next day and show that the shoes were damaged. Justice states that he will just approve the allowance and refund the cash to Skyler, while Skyler can keep the shoes.
Instructions
a. Prepare the journal entry(ies) (using XX’s in the amounts) that the Sam’s Sporting Goods would prepare when the sneakers are sold to Skyler for cash.
b. Prepare the journal entry (using XX’s in the amounts) that Sam’s Sporting Goods would prepare to record the allowance.
c. Should Skyler purchase the sneakers and then request an allowance?
Step by Step Answer:
College Accounting
ISBN: 1986
1st Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Deanna C. Martin, Jill E. Mitchell