Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Need some help figuring this out please The following merchandise transactions occurred in December. Both companies use a perpetual inventory system. Dec. 3 7 Blue
Need some help figuring this out please
The following merchandise transactions occurred in December. Both companies use a perpetual inventory system. Dec. 3 7 Blue Spruce Ltd, sold goods to Swifty Corp. for $ 77,800, termsn/15, FOB shipping point. The inventory had cost Blue Spruce $41,400. Blue Spruce's management expected a return rate of 3% based on prior experience. Shipping costs of $ 1,080 were paid by the appropriate company. Swifty returned unwanted merchandise to Blue Spruce. The returned merchandise has a sales price of $ 2,400, and a cost of $ 1.280. It was restored to inventory. Blue Spruce received the balance due from Swifty. 8 11 Date Account Titles and Explanation Debit Credit Dec 3 Accounts Receivable 77,800 Sales Deferred Revenue (To record credit sale) Dec 3 Cost of Goods Sold 41,400 Inventory 41.40 (To record cost of merchandise sold) Dec. 7 No Entry No Entry Dec. 7 No Entry No Entry Dec 8 Sales Returns and Allowances 2.400 246 Accounts Receivable (To record return of goods) Dec 8 Inventory 1.280 Cost of Goods Sold 121 (To record cost of merchandise returned) UP Dec 11 Cash Accounts Receivable Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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