SALES AND SALES RETURNS WITH DISCOUNTS Callaway Supply sells all merchandise on credit with terms 3/15, n/30.

Question:

SALES AND SALES RETURNS WITH DISCOUNTS Callaway Supply sells all merchandise on credit with terms 3/15, n/30. Callaway engaged in the following transactions:

a. May 1: Callaway sold 40 staplers to Logsdon Enterprises at a list price of $15 per stapler.

b. May 5: Callaway accepted six staplers returned by Logsdon Enterprises.

c. May 10: Logsdon paid for the 34 staplers they kept.

d. May 11: Callaway sold 32 filing cabinets to Jett, Inc., at a list price of $55 per cabinet.

e. May 23: Jett returned five filing cabinets that it did not need.

f. June 4: Jett paid for the 27 filing cabinets they kept.

Required:

Prepare journal entries for each of these transactions assuming Callaway records sales using the gross method.

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Cornerstones Of Financial Accounting Current Trends Update

ISBN: 9781111527952

1st Edition

Authors: Jay Rich , Jeff Jones, Maryanne Mowen , Don Hansen

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