Answered step by step
Verified Expert Solution
Link Copied!

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
image text in transcribed
image text in transcribed
image text in transcribed
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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting

Authors: James A. Cashin, Ralph S. Polimeni, Sheila Handy

3rd Edition

0070110263, 9780070110267

More Books

Students also viewed these Accounting questions

Question

Were any of the authors students?

Answered: 1 week ago

Question

Why must in-service training or on-the-job education be continuing?

Answered: 1 week ago