Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Facts (Problems 1-4) On December 27, 2017, Mint Company placed an order to purchase merchandise on account from a seller, Lemon, Inc. Lemon's listed catalog
Facts (Problems 1-4) On December 27, 2017, Mint Company placed an order to purchase merchandise on account from a seller, Lemon, Inc. Lemon's listed catalog price for the merchandise is $13,000. Lemon's historical cost for these items is $4,000. Mint has been a customer of Lemon's for years and was able to negotiate these terms: (1) a 7% trade discount and (ii) payment terms of 2/10, n/30. The goods were shipped by Lemon FOB shipping point on December 30, 2017 and arrived at Mint's facility on January 5, 2018. At the time of shipment, Lemon paid $700 in shipping costs. On January 6, Mint returned $2,000 worth of merchandise to Lemon, which had an original cost to Lemon of $615. Mint paid Lemon in full on January 7. Show all of your work and calculations, and make sure you answer all parts of the question. Required: 1. Prepare the seller's (Lemon) entries for the sale, return, and collection of payment in the following format: Date: MM/DD/YY Dr. Account............XX Cr. Account........... 2. Prepare the buyer's (Mint) entries for the purchase, return, and payment to Lemon in the following format: Date: MM/DD/YY Dr. Account............XX Cr. Account
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started