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I only have 15 minutes. Please help!!!! You are to record journal entries for Moon Ltd. (Moon) for transactions a through b that follow in
I only have 15 minutes. Please help!!!!
You are to record journal entries for Moon Ltd. (Moon) for transactions a through b that follow in the grid below. Moon uses IFRS. Debits must come before and be on a separate line from credits. There are extra rows in the grid. You are not required to provide explanations, but you should show calculations. Round amounts in entries to the nearest dollar.
a) Moon uses a perpetual inventory system. On day 1, it purchased merchandise inventory on account from Aurora for $50,000 terms 2/10, n/30. On day 3, Moon received credit from Aurora for $5,000 of merchandise that Moon returned. On day 6, Moon paid Aurora the amount owing, net of any returns and discount. Show calculations. | ||||
Date | Debit account | Credit account | Debit $ | Credit $ |
a) day 1 | ||||
a) day 3 | ||||
a) day 6 | ||||
b) On day 8 Moon had credit sales of $60,000. Moon uses a perpetual inventory system and cost of goods sold was $42,000 (70% of sales). Estimated sales returns are 10% of sales. On day 12, Moon recorded the necessary entries for a sales return of $4,000 related to the initial credit sale of $60,000 above. Moon uses IFRS. | ||||
Date | Debit account | Credit account | Debit $ | Credit $ |
b) day 8 | ||||
b) day 12 | ||||
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