Question
EA 1- On March 1, Bates Board Shop sells 300 surfboards to a local lifeguard station at a sales price of $400 per board. The
EA 1- On March 1, Bates Board Shop sells 300 surfboards to a local lifeguard station at a sales price of $400 per board. The cost to Bates is $140 per board. The terms of the sale are 3/15, n/30, with an invoice date of March 1. Create the journal entries for Bates to recognize the following transactions.
the initial sale
Mar. 1 | Dr. [ Select ] ["Sales Discounts", "Sales", "Cash", "Merchandise Inventory", "Cost of Goods Sold", "Accounts Receivable"] | [ Select ] ["42,000", "116,400", "120,000", "3,600"] |
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| Cr. [ Select ] ["sales discount", "Cost of goods sold", "Accounts Receivable", "Sales", "cash", "merchandise inventory"] |
| [ Select ] ["120,000", "3,600", "42,000", "116,400"] |
| To recognize sale of 300 surfboards, terms 3/15, n/30 |
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Mar. 1 | Dr. [ Select ] ["sales", "merchandise inventory", "Accounts Receivable", "cash", "sales discounts", "cost of goods sold"] | [ Select ] ["116,400", "42,000", "3,600", "120,000"] |
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| Cr. [ Select ] ["cost of good sold", "merchandise inventory", "cash", "sales discounts", "sales", "Accounts Receivable"] |
| [ Select ] ["3,600", "42,000", "116,400", "120,000"] |
| To recognize cost of sale |
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the subsequent customer payment on March 10
Mar. 10 | Dr. [ Select ] ["cash", "sales", "Accounts Receivable", "cost of goods sols", "merchandise inventory", "sales discounts"] | [ Select ] ["116,400", "3,600", "42,000", "120,000"] |
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| Dr. [ Select ] ["cost of goods sols", "sales", "sales discounts", "cash", "Accounts Receivable", "merchandise inventory"] | [ Select ] ["120,000", "42,000", "3,600", "116,400"] |
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| Cr. [ Select ] ["cost of goods sold", "Accounts Receivable", "sales", "sales discounts", "Cash", "merchandise inventory"] |
| [ Select ] ["3,600", "42,000", "120,000", "116,400"] |
| To recognize customer payment, less discount |
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