Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
On June 3, 2020, Cullumber Company sold to Ann Mount merchandise having a sales price of $7,400 (cost $6,660) with terms of 160, tob shipping
On June 3, 2020, Cullumber Company sold to Ann Mount merchandise having a sales price of $7,400 (cost $6,660) with terms of 160, tob shipping point. Cullumber estimates that merchandise with a sales value of $740 will be returned. An invoice totaling $100 was received by Mount on June 8 from Olympic Transport Service for the freight cost. Upon receipt of the goods, on June 8, Mount returned to Cullumber $300 of merchandise containing flaws. Cullumber estimates the returned items are expected to be resold at a profit. The freight on the returned merchandise was $24. paid by Cullumber on June 8. On July 16, the company received a check for the balance due from Mount. Prepare journal entries for Cullumber Company to record all the events in June and July. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Credit Jun. 3. 2020 Accounts Receivable 7400 Debit Sales Revenue 7400 (To record sales) Cost of Goods Sold Inventory (To record cost of goods sold) Sales Returns and Allowances 0604 Jun. 8, 2020 740 J. 1 Question 1 of 4 740 LH 8, 2020 , Sales Returns and Allowances 144 Accounts Receivable (To record sales returns) (To record cost of goods returned) Jun 2020 (To record the freight cost) 3100 16, 2020 7104 Account cela +
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