Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

on june 3 2014, hunt company sold to ann mount merchandise having a sales price of $8,000 (cost $5,600) with terms 2/10, n/60, f.o.b shipping

on june 3 2014, hunt company sold to ann mount merchandise having a sales price of $8,000 (cost $5,600) with terms 2/10, n/60, f.o.b shipping point. Hunt esimates that merchandise with a sales value of $800 will be returned. An invoice totaling $120, terms n/30, was by mount on jne 8 from Olympic Transport Service for the freight cost. Upon receipt of the goods, on june 5, Mount notified Hunt that 4300 of merchandise contained flaws. the same day, Hunt issued a cedit memo covering, the defective merchandise and asked that it be returned at Hunts expense. Hunt estimates the returned items to have a fair value of $120. the freight on the returned merchandise was $24, paid by Hunt on June 7. On June 12, the company received a check for the balance due from mount..

A.Prepare journal entries for hunt company to record all the events noted above assuming sales and receivables are entered at gross selling price.

Prepare journal entry assuming Ann Mount did not remit payment until august 8

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_2

Step: 3

blur-text-image_3

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

Management Accounting Information for creating and managing value

Authors: Kim Langfield Smith, David Smith, Paul Andon, Ronald Hilton, Helen Thorne

8th edition

9781760420413 , 978-1760420406

More Books

Students also viewed these Accounting questions