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.
Step by Step Answer:
Cornerstones Of Financial Accounting Current Trends Update
ISBN: 9781111527952
1st Edition
Authors: Jay Rich , Jeff Jones, Maryanne Mowen , Don Hansen