Question
1. On December 3, Sunland sold HK$650,000 of merchandise on account to Culver Ltd., terms 2/10, n/30, FOB shipping point. The cost of the merchandise
1. | On December 3, Sunland sold HK$650,000 of merchandise on account to Culver Ltd., terms 2/10, n/30, FOB shipping point. The cost of the merchandise sold was HK$353,600. |
2. | On December 8, Culver was granted an allowance of HK$29,500 for merchandise purchased on December 3. |
3. | On December 13, Sunland received the balance due from Culver |
a) Prepare the journal entries to record these transactions on the books of Sunland, using a perpetual inventory system.
b) Assume that Sunland received the balance due from Culver on January 2 of the following year instead of December 13. Prepare the journal entry to record the receipt of payment on January 2.
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