Briot Exercises BER-2 Record the following transactions on the books of Marsh Co: (a) On September 1, Marsh Co, sold merchandise on account to Pellerin Inc. for $20,000, terms 2/10. n/30. The cost of the merchandise sold was $12,000. Marsh Co. uses a perpetual inven- tory system (b) On September 4. Pellerin Inc, returned merchandise worth $4,000 to Marsh Co. The original cost of the merchandise was $2,400. The merchandise was returned to inventory. (c) On September 10, Pellerin Inc. paid for the merchandise. BER-3 Record the following transactions on the books of Fowler Co.: (a) On May 1, Fowler Co. sold merchandise on account to Kaneva Inc. for $30,000, terms 2/10, n/30. Ignore any entries that affect inventory and cost of goods sold for purposes of this question. (b) On May 6, Kaneva Inc. returned merchandise worth $6,000 to Fowler Co. (c) On June 30, Fowler Co. charged Kaneva Inc. one month's interest for the overdue account. Fowler charges 10% on overdue accounts. (Round the calculation to the nearest dollar.) (d) On July 5, Kaneva paid the amount owing to Fowler Co. BE8-1 Imports to You Co. accepted a credit card in payment of a $600 purchase of merchandise on August 7. For each of the following assumptions, prepare the journal entry to record the sale. (a) The customer used a nonbank card and the company charges a 3%% fee. (b) The customer used a Visa card and Visa charges a 3% fee. (c) The customer used an Imports to You Co. credit card.EA-2 Transactions follow for the Extreme Sports Lid store and three of its customers in the company's first month of business; June 3 Ben Kidd used his Extreme Sports credit card to purchase $1,050 of merchandise. Biljana Pavic used her Extreme Sports credit card to purchase $540 of merchandise. Biljana Pavic returned $210 of merchandise on credit. Nicole Montpetit purchased $421 of merchandise and paid for it with Visa. Visa charges a 2% service fee. 18 Ben Kidd used his Extreme Sports credit card to purchase an additional $348 of merchandise. 19 Bonnie Cutcliffe used her debit card to purchase $230 of merchandise. There is a $0.50 service charge on all debit card transactions. 20 Biljana Pavie made a $315 payment on her credit card account. 23 Nicole Montpetit used her Extreme Sports credit card to purchase $498 of merchandise. 25 Ben Kidd paid the amount owing on his June 3 purchase. 30 Biljana Pavic used her Extreme Sports credit card to purchase $420 of merchandise. Instructions (a) Record the above transactions, Ignore any inventory or cost of goods sold entries for purposes of this question. (b) Set up T accounts for the Accounts Receivable general ledger (control) account and for the Accounts Receivable subsidiary ledger accounts. Post the journal entries to these accounts. (c) Prepare a list of customers and the balances of their accounts from the subsidiary ledger. Prove that the total of the subsidiary ledger is equal to the control account balance
