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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"]

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

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"]

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

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"]

Dr. [ Select ] ["cost of goods sols", "sales", "sales discounts", "cash", "Accounts Receivable", "merchandise inventory"]

[ Select ] ["120,000", "42,000", "3,600", "116,400"]

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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